Q55. Suppose that the price of New York style slices of pizza is$4 each. Matthew is willing to pay$6 for the firstslice, James is willing to pay$5 for the secondslice, Jessica is willing to pay$4 for the thirdslice, and Tammy is willing to pay$3 for the fourth slice. Which consumer will NOT buy pizzaslices?

A.

Matthew

B.

Jessica

C.

James

D.

Tammy

Q56. When the price of tacos went from$2 to$3 dollarseach, the quantity demanded of burritos changed from 100 to 120 a day. The cross elasticity of demand for burritos calculated using the initial value methodis:

A.

0.75.

B.

0.75.

C.

0.4.

D.

1.33.

Q57. When the price of tacos went from$2 to$3 dollarseach, the quantity demanded of burritos changed from 100 to 120 a day. The cross elasticity of demand for burritos calculated using the initial value methodis:

A.

0.75.

B.

0.75.

C.

0.4.

D.

1.33.

Q58. Suppose the market price for bagels is$1.50 each. If Fresh BagelsBakery's marginal cost of producing that bagel is$0.75, its producer surplus from that bagelis:

A.

$0.75.

B.

$1.25.

C.

$0.

D.

$0.25.

Q59. Figure 6.5 illustrates the market for sugar. If sugar imports werebanned:

A.

domestic producers gain at the expense of domestic consumers.

B.

foreign producers gain at the expense of domestic consumers and producers.

C.

domestic consumers gain at the expense of domestic producers.

D.

domestic consumers gain at the expense of foreign producers.

Q60. In the case of perfectly elasticdemand, the demand curveis:

A.

downward sloping.

B.

vertical.

C.

horizontal.

D.

upward sloping.

Q61. Suppose that in a month the price of tulips increases from$1 to$1.50. At the sametime, the quantity of tulips demanded decreases from 200 to 190. The price elasticity of demand for tulips(calculated using the initial valueformula) is:

A.

0.1.

B.

10.

C.

20.

D.

0.5.

Q62. The supply curve for gasoline will be more elasticin:

A.

the shortrun because of the principle of diminishing returns.

B.

the longrun because firms have more time in which to respond to the price change.

C.

the longrun because of the principle of diminishing returns.

D.

the shortrun because firms have more time in which to respond to the price change.

Q63. Suppose 2012 turns out to be a great year for growing corn and a bumper crop is harvested. This good news has a negative side as well for farmers because the

A.

supply increase will lead to a massive increase in price next year.

B.

equilibrium price willdecrease, so farmers will get a lower price per bushel.

C.

equilibrium price will increase.

D.

increased quantity will end up wasted because demand is not there for it.