Answered: Question 25 S 35 30 25 20 15 10 D O 2 4…

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter20: The Problem Of Adverse Selection Moral Hazard

Section: Chapter Questions

Problem 3MC

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Question 21
Based on the given PPF for a country, which of the following is an example of a point that is unattainable?

6 units of good X and 30 units of good Y.

0 units of good X and 30 units of good Y.

2 units of good X and 18 units of good Y.

6 units of good X and 18 units of good Y.

Question 23
The "law of demand" states that: Other thing remaining the same,

the higher the price of a good, the smaller is the quantity demanded.

the higher consumers' incomes, the greater is the demand.

the higher the price of a good, the higher is the quantity demanded.

the higher the price of a good, the lower is the demand for this good.

Question 24
The price elasticity of demand for oranges ___ change if the units of the quantity were changed from pounds to kilograms and ___ change if the units of the price were changed from dollars to cents.

D) would not; would not

C) would not; would

A) would; would

B) would; would not

Question 25

Given this market for roses, what are the equilibrium price and quantity of roses?

$25, 8 dozens

$30, 8 dozens

$25, 10 dozens

$30, 12 dozens

Question 25
35
30
25
20
15
10
D
O 2 4 6 8 10 12 14 16
Quantity (dozens of roses per day)
Price (dollars per dozen)

Question 21
Y
Point
X
...
A
30
B
2
28
C
4
24
D
6.
18
E
8.
10
F
10

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Question 25 S 35 30 25 20 15 10 D O 2 4 6 8 10 12 14 16 Quantity (dozens of roses per day) Price (dollars per dozen)