(Use Graph A) Which of the following would cause a move from G to E? P Graph A F E G H Q O 1) a decrease in income. O 2) a decrease in the price of its substitute good. 3) an increase in the price. ( 4) a decrease in its price.(Use Table 1) If the price is $7, how much is the consumer surplus? Table 1 NAME WTP John $10 Paul $3 George $8 Ringo $5 1) $3 ( 2) $1 ( 3) $4 ( 4) $2(Use Graph 2) When price increases to $70 from $50, consumer surplus decreases by due to buyers leaving the market. P $100 Graph 2 $90 $80 $70 $60 $50 $40 D 10 20 30 40 50 60 ( 1) $800. 2) $200 ( 3) $400 ( 4) $600The Ed for housing is likely to be _____ while the Ed for a four bedroom three bath two car garage house is likely to be __ _ __. ( 1) inelastic, unit elastic ( 2) elastic, inelastic 3) inelastic, elastic ( 4) elastic, unit elastic(Use Graph B) A move from budget constraint __ to _ represents an increase in income. iPads Graph B B A C laptops O 1) B, C ( 2) A, C 3) B, A O 4) C, A(Use Graph A) Which two points yield the same utility? ham B D Graph A C A 13 12 11 bacon 1) Band D ( 2) Band C 3) A and C ( 4) A and D(Use Table 1) What is the AFC at an output of 2? Table 1 Q VC TC AFC AVC ATC MC 0 100 1 25 2 75 3 25 ( 1) $25 ( 2) $100 3) $75 ( 4) $50(Use Table 1) What is the AVC at an output of 1? Table 1 Q VC TC AFC AVC ATC MC 0 100 25 2 75 25 O 1) $25 O 2) $100 ( 3) $75 4) $50(Use Table 1) What is TR at an output of 2? Table 1 (perfect competition) P TFC TVC TC AVC ATC MC TR Profits 0 $30 W N - $30 $50 $80 O 1) $100 O 2) $170 O 3) $20 ( 4) not enough information given to determine TR(Use Graph B) For this monopolist, if she charges the profit maximizing price and produces the optimal level of production, MC Graph B Price ATC $9 $7 D 100 200 Quantity ( 1) she will earn total economic profit of $400. O 2) she will earn total economic profit of $2. ( 3) she will earn $2 of economic profit per item sold. O 4) she will earn total economic profit of $700(Use Graph B) For this monopolist, the profit maximizing price they should charge is MC Graph B Price ATC $9 $7 D 100 200 Quantity ( 1) $7. O 2) $100. 3) just as much as their conscience will allow them to charge. ( 4) $9.(Use Table 1) Calculate the HHI: Table 1: Market Shares in the BBQ Market Big Butts BBQ 18% Fire In The Hole BBQ 11% Lick de Bone BBQ 7% Everything Butt the Bone BBQ 5% Nine firms each with 4% 36%, combined Seven firms each with 3% 21%, combined One firm with 2% ( 1) 100 ( 2) 519 ( 3) 543 ( 4) 730(Use Table 1) What is the current account balance? Table 1 Imports in services: $761 Exports in goods: $2,050 Income received by foreign investors on U.S. assets: $692 Unilateral transfers: $225 Exports in services: $1,101 Income received by U.S. investors on foreign assets: $945 Imports in goods: $3,042 O 1) -$992 O 2) $4,096 0 3) - $624 O 4) $4,720