week 3 Summative Quiz needed help to answer the following questions :)
Assume that Abby, Ben, Clara, Joe, and Matt are the only citizens in a community. A proposed public good has a total cost of $500. All five citizens will share an equal portion of this cost in taxes. The benefit of the public good is $220 to Abby, $210 to Ben, $190 to Clara, $180 to Joe, and $120 to Matt. In a majority vote, this proposal will most likely be Multiple Choice eBook accepted, all 5 in favor. O accepted, four in favor, one against. O defeated, all 5 against. O defeated, 2 in favor, 3 againstA price increase from $43 10 $49 results in an increase in quantity supplied from 220 units to 240 units. The price elasticity of supply in this price range is 10 Multiple Choice EBOOK O 0.3. 0.61 O Q O 3.33. 11 Answer the question based on the following information for a public good. Pa and Pb are the prices that individuals A and B are willing to pay for the last unit of a public good, rather than do without it. These people Book If the marginal cost of producing this good at the optimal quantity is $1, the optimal quantity must be Multiple Choice O 3 units. 5 units. O 4 units. O 2 units.12 Suppose that an 8 percent increase in the price of normal good Y causes an 8 percent increase in the quantity demanded of normal good X. The coefficient of cross elasticity of demand is Multiple Choice Book O negative, and therefore these goods are substitutes. O negative, and therefore these goods are complements. positive, and therefore these goods are substitutes. O positive, and therefore these goods are complements.The following data are for a series of increasingly extensive flood-control projects. 13 Total Cost Per Total Benefit Per Year Year Plan A = Levees $ 10, 000 $ 16,000 Plan B = Small Reservoir 24, 000 36,000 Plan C = Medium Reservoir 44, 000 52, 000 eBook Plan D = Large Reservoir 72, 000 4,000 For Plan A marginal costs and marginal benefits are Multiple Choice $20,000 and $32,000, respectively. O $10,000 and $16,000, respectively. O $16,000 and $26,000, respectively. O $20,000 and $16,000, respectively.1 4 If a 5 percent decrease in the price of Good A resuln; in an increase of 8 percent in the quantity demanded of Good B, then it can be concluded that Goods A and B are Multiple Choice EBook O substitutes goods. complementary goods. 0 independent goods. normal goods. 15 The coefficient of price-elasticity of supply for a product is 0.8 if Multiple Choice eBook O a 5 percent decrease in the price causes a 0.16 percent decrease in quantity supplied. O a 5 percent decrease in price causes a 0.8 percent decrease in quantity supplied. O a 5 percent decrease in price causes a 4 percent decrease in quantity supplied. a 0.8 percent decrease in price causes a 0.8 percent decrease in quantity supplied.16 If the price elasticity of demand for a product is equal to 2.0, then a decrease in price of 4 percent will increase quantity demanded by Multiple Choice eBook O 2 percent. O 0.8 percent. 8 percent. O 0.5 percent.17 Suppose that as the price of Y falls from $15 to $12, the quantity of Y demanded increases from 200 to 220. Then the absolute value of the price elasticity (using the midpoint formula) is approximately Multiple Choice eBook O 6.67. 0.5. O 0.43. O 2.33.Answer the question based on the following data. 18 Quantity Demanded Price per Unit per Unit of Time $ 20 12 18 17 16 20 14 eBook 24 12 30 10 36 8 40 6 4 4 4 48 Over which of the following price ranges is the demand elastic? Multiple Choice O $12-$10 $8-$6 O $10-$8 O $14-$1219 eBaoK Suppose you are given the following data on demand for a product. The price elasticity of demand [based on the midpoint formula) when price decreases from $8 to $7 is Multiple Choice . [173, O (114 O l 33 O l 43, 2 The price elasticity of demand for widgets is 1.2. Assuming no change in the demand curve for widgets, an increase in sales of 15 percent implies a(n) Multiple Choice eBook O 13.8 percent reduction in price. 18 percent reduction in price. O 12.5 percent reduction in price. O 10.5 percent reduction in price.20 When the price of a product is increased 10 percent, the quantity demanded decreases 15 percent. The price-elasticity-of-demand coefficient for this product is Multiple Choice eBook O 1.5. O 0.15. O 0.67. 6.73 Answer the question based on the following information for four highway programs of increasing scope. All figures are in millions of dollars. Program Total Cost Total Benefit A $ 2 $ 9 B 6 16 C 12 21 D 20 23 eBook Based on the data, we can say that the marginal costs of Program B are Multiple Choice $10. O $6. O $16. O $4.4 The supply of product X is perfectly inelastic if the price of X rises by Multiple Choice eBook O 2 percent and quantity supplied rises by 3 percent. O 10 percent and quantity supplied rises by 10 percent. 6 percent and quantity supplied stays the same. O 12 percent and quantity supplied rises by 10 percent.5 The elasticity of supply of product X is unitary if the price of X rises by Multiple Choice eBook O 2 percent and quantity supplied rises by 3 percent. 10 percent and quantity supplied rises by 10 percent. O 6 percent and quantity supplied stays the same. O 12 percent and quantity supplied rises by 10 percent.6 Assume that a 9 percent increase in income across the economy produces a 6 percent decrease in the quantity demanded of good X. The coefficient of income elasticity of demand is Multiple Choice eBook O positive, and therefore X is a normal good. O negative, and therefore X is a normal good. positive, and therefore X is an inferior good. O negative, and therefore X is an inferior good.7 Suppose that Mick and Cher are the only two members of society and are willing to pay $10 and $8, respectively, for the third unit of a public good. Also, assume that the marginal cost of the third unit is $17. We can conclude that Multiple Choice Book O the third unit should be produced. 4 units should be produced. O zero units should be produced. O the third unit should not be produced.8 $6.30 $5.70 - -. eBook D2 D1 O Q 188 212 384 416 Refer to the diagram and assume a single good. If the price of the good increased from $5.70 to $6.30 along D1, the price elasticity of demand along this portion of the demand curve would be Multiple Choice 0.8. O 1 . O 1.2. O 2.9 If a firm finds that it can sell $20,000 worth of a product when its price is $6 per unit and $22,000 worth of it when its price is $5, then Multiple Choice eBook O the demand for the product is elastic in the $5-$6 price range. O the demand for the product must have increased. elasticity of demand is 0.66. O the demand for the product is inelastic in the $5-$6 price range
