NIL Emai Hom 0 Mail 0 Mail Wore Q Spint Spec | Eatin M Adot Raid Shov 2 Post | Error Orde Sign DZI Mod tlic.tr My |5) Curri Sign D2L C X NIU Email Work w |Hom * Cour X 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=0 Update : Midterm Exam X Time Limit: 2:00:00 Time Left:1:53:03 Therese Folefac: Attempt 1 Page 1: Question 4 (6 points) 1 2 3 Use the graph below to answer the following questions: -- 4 U 6 Price $15 Supply 8 9 -- $14 10 11 12 $13 14 15 $12 $11 $10 Demand 25 75 125 175 225 275 Quantity a) What are the equilibrium price and quantity? b) If a price ceiling of $11 is imposed on this market, will there be a surplus (excess supply), a shortage (excess demand), or will the price ceiling have no effect on the market? c) If a price ceiling of $11 is imposed on this market, find quantity supplied Q Search W P ENG 6:23 PM US /5/2023NIU Emai Hom 0 Mail 0 Mail Wore Q Spint Spec | Eatin M Adot Raid Show 2 Post | Error Orde Sign DZI Mod tic.tr | My |51) Curri Sign DZL C X NIU Email | Work | |Hom * Cour X 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=0 Update : Midterm Exam X Time Limit: 2:00:00 Time Left:1:52:56 Therese Folefac: Attempt 1 Page 1: market? 1 2 3 c) If a price ceiling of $11 is imposed on this market, find quantity supplied -- d) If a price ceiling of $11 is imposed on this market, find quantity demanded. 4 5 6 e) If a price ceiling of $11 is imposed on this market, find the quantity that sellers will be able to sell. (assuming everyone follows the law) 8 9 -- f) If a price ceiling of $15 is imposed on this market, will there be a surplus (excess supply), a shortage (excess demand), or will the price ceiling have no effect on the 10 11 12 market? (g) Explain your answer to (f). 14 15 -= A Question 5 (3 points) (a) State on thing that would cause market supply to increase (cause the supply curve to shift to the right). (b) If supply were to increase, would equilibrium price increase or decrease? Q Search WP ENG 6:23 PM US /5/2023NIU Emai Hom 0 Mail 0 Mail Wore Q Spint Spec | Eatin M Adot Raid Show 2 Post | Error Orde Sign DZI Mod tlic.tr | My |5) Curri Sign D2L C X NIU Email Work w |Hom * Cour X 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=0 Update : Midterm Exam X Time Limit: 2:00:00 Time Left:1:52:48 Therese Folefac: Attempt 1 Page 1: 1 3 A/ 2 4 U 6 -- 8 9 Question 5 (3 points) 10 11 12 (a) State on thing that would cause market supply to increase (cause the supply curve -- to shift to the right). 14 15 (b) If supply were to increase, would equilibrium price increase or decrease? (c) If supply were to increase, would equilibrium quantity increase or decrease? A Q Search ENG 6:23 PM US /5/2023NIU Emai Hom 0 Mail 0 Mail Wore Q Spint Spec | Eatin M Adot Raid Shov 2 Post | Error Orde Sign D21 Mod tic.tr My |5) Curri Sign D2L C X NIU Emai Work | |Hom * Cour X 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=0 Update : Midterm Exam X Time Limit: 2:00:00 Time Left:1:52:41 Therese Folefac: Attempt 1 Page 1: 1 2 3 -- Question 6 (3 points) 4 5 6 Firms will react to a shortage (excess demand) by _ prices. Why will they do this? 8 9 -- -- 10 11 12 14 15 A/ Question 7 (4 points) A farmer grows a crop that takes 8 months from planting to harvesting. Do you expect the supply of this crop to be elastic or inelastic? Explain. Q Search ENG 6:23 PM US /5/2023NIU Emai Hom 0 Mail 0 Mail Wore Q Spint Spec | Eatin M Adot Raid Shov 2 Post | Error Orde Sign DZI Mod tlic.tr My |5) Curri Sign D2L C X NIU Email Work w |Hom * Cour X 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=0 Update : Midterm Exam X Time Limit: 2:00:00 Time Left:1:52:36 Therese Folefac: Attempt 1 Page 1: 1 2 3 4 U 6 Question 8 (7 points) 8 9 -- For a good with the following demand: Quantity 10 11 12 Price Demanded 6000 $20 14 15 14,000 $15 (a) Calculate the price elasticity of demand using the Midpoint Method. (b) Is the demand for this good considered elastic or inelastic? (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 Q Search ENG 6:23 PM US /5/2023NIL Emai Hom 0 Mail 0 Mail Wore a Spin! Spec | Eatin M Adot Raid Show 2 Post | Error Orde Sign DZI Mod tlic.tr | My |51) Curri Sign DEL C X NIU Email | Work | |Hom * Cour X 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=0 Update : Midterm Exam X Time Limit: 2:00:00 Time Left:1:52:31 Therese Folefac: Attempt 1 Page 1: 1 2 3 Question 9 (5 points) 4 5 6 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 $220,000 from the previous month to $180,000. 8 9 -- (a) Based on this information, would you estimate that the price elasticity of demand for boomerangs is elastic or inelastic? 10 11 12 (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 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 Q Search ENG 6:23 PM US /5/2023NIU Emai Hom 0 Mail 0 Mail Wore Q Spint Spec | Eatin M Adot Raid Shov 2 Post | Error Orde Sign DZI Mod tlic.tr My |5) Curri Sign D2L C X NIU Email Work w |Hom * Cour X 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=0 Update : Midterm Exam X Time Limit: 2:00:00 Time Left:1:52:26 Therese Folefac: Attempt 1 Page 1: 1 2 3 4 6 Question 10 (8 points) 8 9 Use the values for a perfectly competitive firm below to answer the questions: -- Price Quantity Total Cost Fixed Cost Variable Cost 10 11 12 $10 2000 $24,000 $8000 $16,000 (a) Should this firm shut down in the short run? Explain why or why not in 1-4 sentences. 14 15 (b) Assume this firm's total costs do not change in the long run. Should this firm exit in the long run? (c) Are your answers to (a) and (b) different? Explain why in 1-4 sentences. A Q Search ENG 6:23 PM US /5/2023