M Dra | M Inb | Age | Vin | DS. | M Ser | The | & Cos | Vali | |Exis | s Shc| Be: | My| (46 | @ City | Qu | Hol | 9 Ma | log|DEL X & Lal | 2 Lau | Orc * Col | My | 7 Lez | NOW Em | Wo | w|Do | + X - -> C a https://brightspace.ccc.edu/d21/Ims/quizzing/user/attempt/quiz_start_frame_auto.d21?ou=252173&isprv=&drc=0&qi=832583&cfql=0&dnb=0&fromQB=0&inProgress=1 Midterm Exam X Therese Folefac: Attempt 1 Page 1: . G 2 w -- V Question 8 (7 points) For a good with the following demand: A 6 V Quantity Price Demanded 8 9 -- -- 6000 $20 14,000 $15 10 11 12 V (a) Calculate the price elasticity of demand using the Midpoint Method. 14 15 (b) Is the demand for this good considered elastic or inelastic? V (c) Do you think it is more likely that the average consumer will consider this good a necessity or a luxury? How did you determine your answer? (d) If sellers' production costs rise, will they be able to pass these higher costs onto the buyers in the form of higher prices? Explain. A 1 80OF Q Search ENG 10:57 AM Mostly sunny US 7/20/2023M Dra | M Inb | Age | Vin | DS. | M Ser | The | & Cos | Vali | |Exis | s Shc| Be: | My| (46 | @) City | Qu | Hol | 9 Ma | log|DEL X & Lal| 2 Lau | Orc * Col | My | 7 Lez | NIU Em | Wo | w|Do | + X - -> C a https://brightspace.ccc.edu/d21/Ims/quizzing/user/attempt/quiz_start_frame_auto.d21?ou=252173&isprv=&drc=0&qi=832583&cfql=0&dnb=0&fromQB=0&inProgress=1 Midterm Exam X Therese Folefac: Attempt 1 Page 1: . G 2 w -- V Question 9 (5 points) A 6 V Paula sells boomerangs. In attempt to increase sales, she discounts the price of boomerangs by 15%. As a result of the sale, she finds that her revenues fall from 8 9 $220,000 from the previous month to $180,000. -- -- (a) Based on this information, would you estimate that the price elasticity of demand 10 11 12 for boomerangs is elastic or inelastic? V (b) Briefly (in 1-2 sentences) explain why the sale failed to increase her revenue. 14 15 (c) The local government decides to start taxing boomerangs. If the price elasticity of V supply of boomerangs is 1.6, who will pay more of the tax: buyers or sellers? (d) How can you determine whether buyers or sellers will pay a greater share of the tax? A 1 80OF Q Search ENG 10:57 AM Mostly sunny US 7/20/2023M Dra | M Inb | Age | Vin | DS. | M Ser | The | & Cos | Vali | |Exis | s Shc | Be: | My | (46 | @ City | Qu | Hol | 9 Ma | log|DEL X & Lal | 2 Lau | Orc * Col | & My | 7 Lez | NIU Em | Wo | w |Do | + X - -> C a https://brightspace.ccc.edu/d21/Ims/quizzing/user/attempt/quiz_start_frame_auto.d21?ou=252173&isprv=&drc=0&qi=832583&cfql=0&dnb=0&fromQB=0&inProgress=1 Midterm Exam X Therese Folefac: Attempt 1 Page 1: 2 3 -- V Question 10 (8 points) Saved Use the values for a perfectly competitive firm below to answer the questions: A U 6 Price Quantity Total Cost Fixed Cost Variable Cost $10 2000 $24,000 $8000 $16,000 8 9 -- -- (a) Should this firm shut down in the short run? Explain why or why not in 1-4 sentences. 10 11 12 V (b) Assume this firm's total costs do not change in the long run. Should this firm exit in the long run? 14 15 V (c) Are your answers to (a) and (b) different? Explain why in 1-4 sentences. A Question 11 (6 points) Saved . G Use table to find the required values: 1 80OF Q Search ENG 10:58 AM Mostly sunny US 7/20/2023M Dra | M Inb | Age | Vin | DS. | M Ser | The | & Cos | Vali | |Exis | s Shc| Be: | My| (46 | ) City | Qu | Hol | 9 Ma | log|DEL X & Lal | 2 Lau | Orc * Col | My | 7 Lez | NOW Em | Wo | w|Do | + X - -> C a https://brightspace.ccc.edu/d21/Ims/quizzing/user/attempt/quiz_start_frame_auto.d21?ou=252173&isprv=&drc=0&qi=832583&cfql=0&dnb=0&fromQB=0&inProgress=1 Midterm Exam X Therese Folefac: Attempt 1 Page 1: 2 ( w -- U A 6 8 9 Question 11 (6 points) Saved -- -- Use table to find the required values: 10 11 12 Price $32 14 15 Quantity 400,000 V Explicit costs $3,500,000 Implicit costs $4,100,000 (A) Calculate total revenue. (B) Calculate accounting profit. (C) Calculate economic profit. A 1 80OF Q Search ENG 10:59 AM Mostly sunny US 7/20/2023M Dra | M Inb | Age | Vin | DS. | M Ser | The | & Cos | Vali | |Exis | s Shc| Be: | My| (46 | @) City | Qu | Hol | 9 Ma | log|DEL X & Lal | 2 Lau | Orc * Col | My | 7 Lez | NOW Em | Wo | w|Do | + X - -> C a https://brightspace.ccc.edu/d21/Ims/quizzing/user/attempt/quiz_start_frame_auto.d21?ou=252173&isprv=&drc=0&qi=832583&cfql=0&dnb=0&fromQB=0&inProgress=1 Midterm Exam X Therese Folefac: Attempt 1 Page 1: 2 ( w -- A 6 -- 8 9 -- -- 10 11 12 Question 12 (6 points) Saved V Based on the table below for a perfectly competitive firm: 14 15 V Quantity Fixed Cost Variable Total Marginal Cost Cost Cost 10 200 50 250 20 200 100 300 5 30 200 300 500 20 40 200 800 1000 X (a) Find the marginal cost as X. (b) If the equilibrium price is $20, find the profit maximizing quantity. (c) How much profit will the firm earn? 1 80OF ENG 10:59 AM Mostly sunny Q Search US 7/20/2023