ECON 101 Study Guide - Midterm Guide: Average Variable Cost, Average Cost, Alarm Clock

• School: U of M
• Department: Economics
• Course: ECON 101
• Professor: All

Document Summary

Unless a question explicitly says otherwise, assume that all demand curves slope downward, all supply curves slope upward, and there are no externalities. Mark box a for true and box b for false. Each correct answer adds 2 points to your score. Mark the box corresponding to the best answer. Each correct answer adds 5 points to your score. Each blank answer gives you 1 point: the graph below shows the demand and supply for pumpkins in new york city. Suppose the municipal government imposed a price floor on pumpkins of , and now increases it to . Increase by ,000: decrease by ,000, decrease by ,000. Version 1 page 2: sally spends all of her money on pizzas and salads. The graph below shows sally"s budget lines before and after the price of a pizza increased from to . The price of a salad did not change.