ECON 201 CH 2 ASSESSMENT EXAM QUESTIONS

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ECON 201 CH 2 ASSESSMENT EXAM QUESTIONS

Actual Qs and Ans Expert-Verified Explanation

This Exam contains:

-Guarantee passing score -15 Questions and Answers -format set of multiple-choice -Expert-Verified Explanation

Question 1: Price per flight / Quantity demanded per day

$200 / 1,350

$300/ 1,250

$400 / 1,150

$500 / 1,050

$600 / 950

$700 / 850

Answer:

As part of the marketing team at Delta airlines, you must develop a strategy to increase demand for flights between Kansas City and Detroit. You examine data from previous flights and determine that the existing demand for flights between the two cities is as given in the accompanying table.Price per flight/ Quantity demanded per day

$200/1,200

$300 / 1,100

$400 / 1,000

$500 / 900

$600 / 800

$700 / 700

a.Your team launches a viral advertising campaign that is so successful that all existing consumers increase their willingness to pay by $100, and 50 new customers demand flights at every price.How will this affect the quantity demanded per day?

b.Use the graph provided to plot the original demand curve using D1. Use the end points to plot the curve, as it will be a straight line.Next, plot the new demand curve from part a using D2, Again plot the end points only.

Question 2: b. negative

Answer:

Suppose Grubhub, a food delivery service, has recently expanded to your area. The accompanying table contains the number of deliveries per month that you demand at various delivery prices.

a.Use this information to plot your individual demand curve. Drag each point on the graph to the point that corresponds with the information presented in the table.

b.In general, the slope of the demand curve is

Question 3: a. normal

• inferior
• normal

Answer:

Determine whether each good is a normal good or an inferior good for the average consumer.

• For most consumers, the newest iPhone is

a ______ good.

• For most consumers, a 10-year-old used car is

an _____ good.

• For most consumers, dental services are a _____ good.

Question 4: A. shift left

• shift right

Answer:

Consider the market demand curve for the Samsung Galaxy smartphone. Use a graph to illustrate the effect, if any, each given scenario has on the demand for Samsung Galaxy smartphones.

a.The batteries in Samsung smartphones begin to spontaneously combust.

b.Apple increases the price of the newest iPhone by 10%.

Question 5: A.

• 2 hours
• 3 hours
• the same as

Answer:

Consider Ron's demand for after school care for his children. The marginal benefit Ron receives for every hour of childcare is provided in the accompanying table.After school childcare(hours per day)/Marginal benefit ($ per hour) 1/$32 2/$30 3/$20 4/$14

a.Utilizing the information in the table, move the points in the first graph to plot Ron's marginal benefit curve, and move the points in the second graph to plot Ron's demand curve.

b.If an hour of childcare costs $24, how many hours will Ron purchase each day? Assume Ron can only purchase care in one-hour increments (no partial hours).

c.If an hour of childcare costs $18, how many hours will Ron purchase each day? Assume Ron can only purchase care in one-hour increments (no partial hours).

d.Ron's marginal benefit curve is _____ his demand curve.Question 6: An increase in the price of a ticket will not cause a decrease in demand, but rather a decrease in quantity demanded.

Answer:

Consider the following statement: "An increase in the cost of oil will cause the price of a plane ticket to increase. This increase in price will cause a decrease in demand for airline travel and a leftward shift in the demand curve."

What is the flaw of this reasoning?The cost of oil affects supply and not demand so prices of tickets will remain the same.An increase in the price of a ticket will not cause a decrease in demand, but rather a decrease in quantity demanded.The increase in the cost of oil will cause a decrease in the price of a plane ticket.A decrease in demand will shift the curve rightward, not leftward.

Question 7: a. survey customers

add up the total quantity demanded by the customers at each price point scale up the quantities demanded by the survey respondents plot the demand curve

• consumer demographic information

existing competition in the market

Answer:

A team of analysts at Amazon is researching the viability of producing a smart watch. How might they estimate potential demand for their smart watch?

a.Consider the four-step process that many companies follow to estimate the market demand curve for their product. Place the steps in order, with the first step in the highest position and the last step in the lowest position.scale up the quantities demanded by the survey respondents plot the demand curve add up the total quantity demanded by the customers at each price point survey customers

b.Select two factors that the analysts want to keep in mind to create the most accurate demand estimates.consumer demographic information existing competition in the market information about climate change cost of inputs to production Question 8: do not violate the law of demand because your preference for the product changed after you experienced the good.

Answer:

You just took an Uber from home to campus for the first time and were willing to pay $13 for the trip. It was so much easier than driving yourself that you are willing to pay $21 for the same trip tomorrow.Determine if you have violated the law of demand based on your choices, and why or why not that is the case.Your decisions do violate the law of demand because the law of demand states that quantity demanded decreases as