Instructions dentify the choice that best completes the statement or answers the question. Scenario 3 Suppose the market demand for in-class lectures is: Qd = 1355 + 1.5C - 0.005N - 7P C = price of podcasts, $50 N = income measured in dollars, $20,000 P = price of in-class lectures Suppose the market supply of in-class lectures is: Qs = 3P 1. Refer to Scenario 3. How are in-class lectures and podcasts related? a. They are necessities b. They are normal goods c. They are substitutes d. They are complements 2. Refer to Scenario 3. What are the |slope| and the y-intercept of the demand curve? a. slope =7, y-intercept = 1330 b. slope = 1/7, y-intercept = 190 c. slope =1/7, y-intercept = 1330 d. slope =7, y-intercept = 190 3. Refer to Scenario 3. Now suppose the government imposes a $5 tax on the suppliers of i class lectures. What is the new after-tax equation? a. Q tax = 1320 - 7p b. Q Stax = 3P - 5 C. Q tax = 1295 - 7P d. QStax = 3P - 15 4. Refer to Scenario 3. Now suppose the government imposes a $5 tax on the suppliers of class lectures. What price do suppliers receive after-tax? a. $125.50 b. $129.50 C. $134.50 d. $133.50 PageFigure 13-8 C 10 12 14 16 18 20 X 5. Refer to Figure 13-8. If point B is the consumer's optimum and the price of good X is $5 per unit, what is the price of good Y? a. $2.50 b. $1.50 C. $3.00 d. $6.00 Table 12 Number of Marginal Marginal workers Output Product of Revenue Wage Labour Product 0 1 50 750 500 2 40 3 120 4 20 5 150 6. Refer to Table 12. How many workers will the firm hire in order to maximize profit? a. 3 C. 4 d. 2 Page 4 of 19 417. What does the freedom of entry and exit imply for a monopolistically competitive market? a. excess capacity in the industry b. strategic behaviour with respect to other firms in the industry c. zero profits in long-run equilibrium d. a negatively sloped demand curve for the industry Table 13 Chandler consumes pizza, soda and ice cream (What a healthy guy:|). The price of one pizza is $10. The price of one can of soda is $4. The price of one ice cream cup is $5. Chandler is maximizing his utility given his income. The total utility Chandler receives from consuming the three goods is outlined: Quantity Total Utility of Total Utility Total Utility PIZZA of SODA of ICE CREAM 1 45 30 25 2 95 70 40 3 135 120 50 4 155 140 55 155 149 55 8. Refer to Table 13. What is Chandler's optimal consumption bundle of pizza, soda and ice cream? a. 4 pizzas, 1 soda and 2 ice cream cups b. 2 pizzas, 4 sodas and 1 ice cream cup c. 3 pizzas, 5 sodas and 3 ice cream cups d. 1 pizza, 5 sodas and 2 ice cream cups 9. Refer to Table 13. Suppose there are only two goods, pizza and soda. If soda is on the x- axis and pizza is on the y-axis, what is the |slope] of the budget constraint? a. 5/2 b. 2/5 C. 1/4 d. 4/1 Page 5 of 19