Microeconomics 2nd Edition By Goolsbee - Test Bank
18 views 1 purchase
Course
Microeconomics - Test Bank
Institution
Microeconomics - Test Bank
1.
Which of the following is a key assumption of the supply and demand model?
A)
that the price and quantity sold are determined in a single market
B)
that the prices and quantities sold are simultaneously determined in all markets
C)
the way the whole economy achieves equilibrium
D)
that ...
, 1. To test whether the law of demand holds using calculus, you should:
A) take the partial derivative of quantity demanded QD with respect to P and conclude
that the law of demand holds if this derivative is positive at the market price.
B) take the partial derivative of quantity demanded QD with respect to P and conclude
that the law of demand holds if this derivative is negative at the market price.
C) take the derivative of P with respect to quantity demanded QD and conclude that the
law of demand holds if this derivative is positive at the market price.
D) take the derivative of P with respect to quantity demanded QD and conclude that
the law of demand holds if this derivative is negative at the market price.
2. Suppose that the market demand curve for sunflowers is a function of the price of
sunflowers, the price of roses, and income. If the partial derivative of quantity
demanded of sunflowers with respect to the price of roses is negative, sunflowers
and roses are:
A) substitutes.
B) complements.
C) normal goods.
D) inferior goods.
3. Suppose that the market demand curve for sunflowers is a function of the price of
sunflowers, the price of roses, and income. If the partial derivative of quantity
demanded of sunflowers with respect to income is negative:
A) sunflowers are normal goods.
B) roses are normal goods.
C) sunflowers are inferior goods.
D) roses are inferior goods.
4. Suppose that the market demand curve for cauliflower is a function of the price
of cauliflower, the price of broccoli, and income. If the partial derivative of
quantity demanded of cauliflower with respect to the price of broccoli is positive,
cauliflower and broccoli are:
A) substitutes.
B) complements.
C) normal goods.
D) inferior goods.
5. Suppose that watermelon, with price PW, and barbecue sauce are related goods. The
expanded demand curve for barbecue sauce, then, is . Suppose
that PW is $5 per watermelon. Use calculus to determine whether watermelon is
complementary or a substitute for barbecue sauce.
Page 1
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller ExamsExpert. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $22.69. You're not tied to anything after your purchase.
