Question

Fall 2019 Economics 2100 MY9 Section First Exam-Version A 4. The marginal opportunity cost of the 32nd unit of corn is equal to: 55 units of wheat 5 units of wheat 145 units of wheat. 10 units of wheat c) d) Suppose that a new genetically altered cherry tree produces twice as many cherries than the original trees. This will cause: 5. the equilibrium price and quantity of cherries to both fall the equilibrium price and quantity of cherries to both rise the equilibrium price of cherries to rise and the equilibrium quantity of cherries to fall the equilibrium price of cherries to fall and the equilibrium quantity of cherries to rise will have a coduction in reve You can unambiguously predict a reduction in the equilibrium price if: will sell the demand and supply both increase the demand and supply both decreaseon o the demand increases and supply decreases the demand decreases and supply increases the dema Assume that steamers and little neck clams are substitutes. An increase in the price of steamers will cause the: nt fall 6. a) b) c) d) 7. demand curve for little neck clams to shift to the right but the supply curve of little neck clams will not shift demand curve for little neck clams to shift to the left but the supply curve of little neck clams will not shift supply curve of little neck clams to shift to the right but the demand curve for little neck clams will not shiftdemnd for supply curve of little neck clams to shift to the left but the demand curve for little neck clams will not shift a) cutire burdenof the tx w o Americun b) deotly inela mand for tomnatoes is edly ne nfoes is inelic but o d) ninista poses a Continue to assume that steamers and little neck clams are substitutes. An increase in the price of steamers will: 13 8. cause the equilibrium price of little neck clams to rise cause the equilibrium price of little neck clams to fall cause the equilibrium quantity of little neck clams to fall have no impact on the equilibrium price of little neck clams 2 vi

Answer 1

5) As more cherries are produced than earlier, supply rises of cherries. If supply rises and demand remains the same, price falls from P to P1 and quantity traded rises from Y to Y1. Thus option D is correct.
frief

6) If demand rises from D to D1 and supply rises from S to S1, prices would fall from P to P2. Thus option D is correct.

7) As steamers and little neck clams are substitutes to each other. If the price of steamers rises, consumer will move toward buying little neck clams as it is cheaper. The demand for steamer would fall and demand for little neck clams would rise. Thus option A is correct.

8) As demand for little neck clams rises, demand curve of it shifts to the right which would cause price and quantity to rise. Thus option A is correct.