Question

34. The supply of waterfront property at Lake Chestermere is perfectly inelastic. If the population of Calgary and the surrounding areas decrease, this will result in? a. an increase in the equilibrium price only. b. a decrease in the equilibrium price only. c. an increase in the equilibrium quantity and a decrease in price. d. an increase in the equilibrium quantity with no increase in price. e. a decrease in equilibrium quantity and a decrease in price. 35. If a binding (effective price floor is in effect and if the demand for the product shifts outward, one consequence would be a. a decrease in the amount of excess supply. b. a decrease in the amount of excess demand. c. an increase in the amount of excess supply. d. an increase in the amount of excess demand. e. none of the above. 36. What would happen to the equilibrium price and quantity of beer if the number of suppliers increased and the price of wine (a substitute product) increased? a quantity will fall and the effect on the price is indeterminate. b. quantity will rise and the effect on the price is indeterminate. c. the price will fall and the effect on quantity is indeterminate. d. the price will rise and the effect on quantity is indeterminate. e. the price will rise and the quantity will rise. 37. An increase in the price of a good and a decrease in total revenue on this good are associated with a. inferior goods. b. substitute goods. c. normal goods. d. elastic demand. e. inelastic demand. 38. Which of the following pairs of commodities is most likely to have a cross-price elasticity of demand that is negative? a. hockey sticks and hockey pucks. b. Molson's Canadian beer and Kokanee beer. c. perfume and garden hoses. d. Coke and Pepsi. e. Toyota Corolla and a Ford Focus. Version A

Answer 1

CD- 34 f penfectly nelashic mcars Supply SUpply Loill not Changa coith the change in pria So iF othen CUPply same will be ever factor changes Decreale fn population decrcase thu uoiii Demand Supply Answen is Ophion R Only Equilibri um price wil clecrease Gqwtibrium GUantity fs at Same CO35 Answer is Ophon- A Excess SuPply woi decrcase Eanlion A-B Exuss upply Aften Demand Shifh to A C-B is Ex cess Supply So Excess Supply decreased

Q-36 Answer fs option -3 Increase in SUpplien uoilt ncrease the SUpply So 9uanhity wili Increase Inncase fn Increase wi'll GHLoine prica the of Chanrg dem and for been Magmitude fria f Lofne and Change fn demand for been fs unclean. So Pria nden Lodten Indetenminate CQ-37 Ansuwen D In Elastic demand Increase fn price of uoili Gored denease the t0tal Hevenue. - 38 A Ansioen have tlegarive Complementany good T- damand Cross-pria elasticity Hockey St'As Hodeey hoses are and atogether Used