ANALYSIS OF MANAGERIAL ECONOMICS EXAM 1(1-6) ANSWER PAGES

MANAGERIAL ECONOMICS EXAM 1(1-6) ANSWER PAGES
Name ___________________________________ Version __________
Circle the one best answer, fill in the blank(s), or work out completely. Show calculations, please.
1 a. Quantity must increase but market price may fall, stay the same or even increase.
b. Price must fall but market quantity may fall, stay the same or even increase.
c. Price must increase but market quantity may fall, stay the same or even increase.
d. Quantity must decrease but market price may fall, stay the same or even increase.
e. Both market quantity and market price must increase.
f. Market quantity must increase and market price must decrease.
2.
3. 3.2 60.0 111.0 118.0 130.0 150.0 (all close, but approximate)
4 a. demand has increased
b. demand has decreased
c. supply has increased
d. supply has decreased
e. quantity supplied has decreased
f. quantity demanded has decreased
g. quantity demanded has increased
h. quantity supplied has increased
5. Circle the correct formula for marginal revenue (MR)
.4Q2MRa.  .5Q3MRb.  .167Q1MRe. 
.2Q1.5MRc.  .333Q1MRd.  .333Q1.5MRf. 
6. 1 3 4.5 5 6 7.5
M
D2
D1
S1
S2
Price
K
J
Quantity
L

7 a. 2 percent and total expenditures on bread will rise.
b. 2 percent and total expenditures on bread will fall.
c. 20 percent and total expenditures on bread will rise.
d. 20 percent and total expenditures on bread will fall.
e. 20 percent and total expenditures on bread will be unchanged.
8 a. negative and therefore these goods are inferior goods.
b. negative and therefore these goods are complements.
c. positive and therefore these goods are substitutes.
d. positive and therefore these goods are normal goods.
9. 0.39 0.5 .89 1.0 1.75 2.83
10. 2.5% 8% 10% 15% 25% 40%
11. -3.67 -1.22 1.22 1.44 3.67 4.33
12a. decrease by 1000
b. decrease by 1250
c. increase by 1000
d. increase by 1250
13a. decrease by 750
b. decrease by 1500
c. decrease by 1750
d. increase by 750
e. increase by 1500
f. increase by 1750
14a. increases by 200
b. decreases by 200
c. increases by 450
d. decreases by 450
e. increases by 700
f. decreases by 700
15a. normal goods
b. substitute goods
c. inferior goods
d. complementary goods
16. 19401 28902 31027 35902 38902 40152