Microeconomics 2nd Edition By Goolsbee - Test Bank
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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.
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