Linear Supply and Demand Functions intro test

Question 1

Qd = 400 - 25P; now PED falls / more inelastic. Which equation is more likely to be correct?

Accepted Answer

Qd = 400 - 20P

Question 2

Qs = -50 + 25P; PES becomes more Price elastic. The new equation is more likely to be

Accepted Answer

Qs = - 50 + 35P

Question 3

Qd= 800-30P; Qs=- 400+50P; the change in equilibrium P as D increases at each price by 200

Accepted Answer

+ 2.5

Question 4

Qd of cereals = 50 - 10P; If the price of milk doubles, the new equation is likely to be

Accepted Answer

Qd = 20 - 10P

Question 5

Qd = 50 - 10P; YED = + 2; in a recession the new equation is likely to be

Accepted Answer

Qd = 20 - 10P

Question 6

Qs= 100 + 20P; firms now willing to supply 200 more at each price. The equation is now

Accepted Answer

Qs= 300 + 20P

Question 7

In Qd = 100 - 5P the Q and P intercepts are respectively

Accepted Answer

100 and 20

Question 8

The price and quantity equilibrium for Qd= 105-5P and Qs= 25 + 5P is

Accepted Answer

P = 8; Q = 65

Question 9

Qd = 100 - 10P ; if consumer are willing to buy 24 fewer unit at each price equation will be

Accepted Answer

Qd= 76 - 10P

Question 10

In Qs = 300 + 20P the P intercept is

Accepted Answer

15

Questions 10