Question

1) Mrs. Y spent about 25 minutes every day to get to work by driving her car. The one-way commute cost her 58.00 in total including parking-while her wages per hour were $12.00. Alternatively, she took the city's subway that cost her $2.00 for a 40-minute commute to work. She noted that the opportunity costs of driving were_ _ and taking the public transportation were respectively. A) $13.00; $14.00 B) S13.00, $10.00 C) $13.00, $14.00 D) $11.00; $10.00 Figure 12: Supply and Demand S1 Prices PAN Exhibit 5A N P3/41 N H A3 B3 GND - Quantity Q3 Q2 Q1 2) Refer to Figure IZ. When market equilibrium points moved from D to E, which one of the followings is true? A) Supply increased and demand increased. B) Quantity supplied increased and quantity demanded decreased. C) Supply remained unchanged and quantity demanded increased. D) Demand increased and quantity supplied increased. 3) Refer to Exhibit 5A. When the market price (P) is above the equilibrium price (P)-in a free and competitive market. there will be a a nd prices tend to move , respectively. A) shortage: up B) surplus; down C) shortage, down D) surplus; up

Please answer question 1

Answer 1

1.

Wages per hour = $12

If Mrs. Y travels by her car, it costs her $8 and less of 25 minutes of wages.

Wages of 25 minutes = 12 x 25/60

Opportunity cost of driving = 8 + 5

= $13

If she takes public transportation, it costs her $2 and loss of 40 minutes of wages.

Wages for 40 minutes = 12 x 40/60

= $8

Opportunity costs of public transportation = 2 + 8

= $10

She noted that the opportunity costs of driving were $13 and taking the public transportation were $10, respectively.

correct option is (B)

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