= 20 , when 0 15 P Q Q – ≤ ≤ = 10 (1/3)Q , when 15 P Q – ≤ ≤ 30 20 , when 0 10 P = Q Q – ≤ ≤ = 50/3 (2/3)Q , when 10 25 P Q – ≤ ≤ = 25 (3/2)P , when 0 Q P – ≤ ≤ 10 20 , when 20 Q = P P – 10 ≤ ≤ = 10 (1/3)Q , when 0 30 P Q – ≤ ≤ Suppose that prior to setting price the dairy manager at Babcock knows the market demand. Suppose also that the market supply curve for Babcock ice cream is now given by the equation: = (1/2)Q 2. P + Holding everything else constant, which of the following statements is incorrect? With the new market supply, the equilibrium price in the market would now be $8 per pint with 12,000 pints of ice cream sold. When the market for Babcock ice cream is in equilibrium, both types of customers (those who like and those who are crazy about ice cream) will purchase equal amounts of ice cream. Both types of customers will purchase 6,000 pints. One possible explanation for the change in the market supply equation could be that there is a shortage of the dairy products that go into the production of ice cream in the Wisconsin area. If Babcock continues to sell ice cream at a price of $4 per pint, then Babcock will find that there is an excess demand for 14,000 pints of ice cream at this price. Which of the following statements concerning economic growth is not true? If an economy produces only two goods using a single factor of production and a natural disaster eliminates much of that factor of production, then the PPF will shift inward. Suppose an economy produces only two goods, apples and computers. Suppose this economy produces 200 apples and 30 computers in 2005, and 300 apples and 20 computers in 2006. Given this information, this economy definitely had no economic growth between these two years. When an economy has economic growth this is depicted by drawing a PPF that has shifted out from the original PPF.
P = 20 – Q , when 0 ≤ Q ≤ 15 P = 10 – (1/3)Q , when 15 ≤ Q ≤ 30 P = 20 – Q , when 0 ≤ Q ≤ 10 P = 50/3 – (2/3)Q , when 10 ≤ Q ≤ 25 Q = 25 – (3/2)P , when 0 ≤ P ≤ 10 Q = 20 – P , when 10 ≤ P ≤ 20 P = 10 – (1/3)Q , when 0 ≤ Q ≤ 30 Suppose that prior to setting price the dairy manager at Babcock knows the market demand. Suppose also that the market supply curve for Babcock ice cream is now given by the equation: P = (1/2)Q + 2. Holding everything else constant, which of the following statements is incorrect? With the new market supply, the equilibrium price in the market would now be $8 per pint with 12,000 pints of ice cream sold. When the market for Babcock ice cream is in equilibrium, both types of customers (those who like and those who are crazy about ice cream) will purchase equal amounts of ice cream. Both types of customers will purchase 6,000 pints. One possible explanation for the change in the market supply equation could be that there is a shortage of the dairy products that go into the production of ice cream in the Wisconsin area. If Babcock continues to sell ice cream at a price of $4 per pint, then Babcock will find that there is an excess demand for 14,000 pints of ice cream at this price. Which of the following statements concerning economic growth is not true? If an economy produces only two goods using a single factor of production and a natural disaster eliminates much of that factor of production, then the PPF will shift inward. Suppose an economy produces only two goods, apples and computers. Suppose this economy produces 200 apples and 30 computers in 2005, and 300 apples and 20 computers in 2006. Given this information, this economy definitely had no economic growth between these two years. When an economy has economic growth this is depicted by drawing a PPF that has shifted out from the original PPF.
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