Answer Key to Sample mc questions for Test 2 (Section 9 class only)

This is for the Tuesday/Thursday class (Section 009).

Here is the key. Let me know if you think there are any errors. Check back for changes or comments.

1-A, 2-B, 3-A**, 4-C,
5-B, 6-C, 7-D, 8-D, 9-B, 10-D,
11-B, 12-C, 13-A, 14-A, 15-B, 16-B,
17-A, 18-A, 19-B, 20-D, 21-A, 22-C,
23-C, 24-D, 25-C, 26-D, 27-C, 28-B*, 29-C,
30-D, 31-C, 32-A, 33-C, 34-A,
35-C, 36-D, 37-B, 38-A, 39-B,
40-B, 41-B, 42-C, 43-B, 44-D, 45-B.

*28 was originally listed as C. But the elasticity is 1.8 so it is definitely elastic. (Thanks B.G.)
**3 was originally listed as C. (Thanks R.E.)

(Note: I put this together rather quickly before my 11:15 class since I promised to get it posted by noon. I will look over this again later to look for any errors. Please let me know if you find any.)

Problem 4: It doesn't say whether it is a price floor or a price ceiling, but that shouldn't matter.

Problem 26: Sorry for the awkward wording on alternative D. Rather than "very substitutes" but should be "very substitutable."

Problem 29: Given you have the elasticity coefficient and the percentage change in price, you should be able to solve for the unknown (percentage change in quantity demanded). This requires an algebraic manipulation of the formula.