Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : ASK Vendit Off Topic Questions -- Ignore unavailable to you. Want to Upgrade?

To: Grant who wrote (396)	5/18/1999 6:18:00 AM
From: Vendit™	Respond to of 19374

Grant, A quick glance at my S.A.T. scores for college entry would tell even the mentally challenged that you are asking the wrong person for help with studies. <ggg>

To: Grant who wrote (396)	5/18/1999 10:31:00 AM
From: Rommy B.	Read Replies (1) \| Respond to of 19374

Here is a try to answer the economic questions. Keep in mind, though, that I was a psychology major so take everything with a huge grain of salt... 20) If the supply of a product decreases and the demand for that product simultaneously increases, we can conclude that equilibrium; (a) price must rise, but equilibrium quantity may either rise, fall, or remain unchanged. (b) price must rise and equilibrium quantity must fall. (c) price and equilibrium quantity must both increase. (d) price and equilibrium quantity must both decline. (e) quantity must decrease, but equilibrium price may either rise, fall, or remain unchanged. Well, just because supply decreases and demand increases does not mean that prices MUST increase. (For example, no matter what the demand or supply is for a postal stamp, it will sell for the posted price). I choose (E) therefore because the quantity is the only thing that must decrease since the demand size will swallow it up. This would be my guess. 21. Given a downsloping demand curve and an upaloping supply curve for a product, the imposition of an exercise tax on this product will: (a) increase equilibrium price and quantity. (b) decrease equilibrium price and quantity. (c) decrease equilibrium price and increase equilibrium quantity. (d) increase equilibrium price and decrease equilibrium quantity. (e) have no impact upon equilibrium price and quantity. Okay, so now we have a product that nobody wants and we have more and more of it, and on top of it all we have a tax imposed... So price will increase (because of the tax) and quantity will also increase since now even more "nobody" would want to buy it. So I choose (read, guess) "A". (Advanced analysis) Answer the next question(s) on the basis of the following information. The demand for commodity X is represented by the equation P = 10 -0.2Q and supply by the equation P 2 + 0.2Q. 22. Refer to the above information. The equilibrium quantity is: (a) 10. (b) 20. (C) 15. (d) 30. (e) 45. For this question, you have to set the two equations (supply and demand) equal to each other and solve for q. I am not sure, though, what the equation for the supply is... p = 2 + .2Q ?... If this is indeed correct, the answer is (B). (Believe it or not, Grant, I have never taken an economics class, just trying to utilize common sense and see what works... Got me this far through life... =) 2311 The income and substitution effects explain why: (a) the elasticity of demand can be unity. product demand curves are downsloping. (c) product supply curves are upsloping. (d) equilibrium is always achieved in a competitive market. Okay, so for this one, I am not sure I understand it all... Maybe some typing mistakes? But I would definitely rule out (E) because of common sense: equilibrium does not always have to be achieved. This is too extreme. Since (b) and (c) seem to be almost the same, I will guess A. 48) Which of the following is not correct? (a) Where marginal product is greater than average product, average product is rising. (b) Where total product is at a maximum, average product is also at a maximum. (c) Where marginal product is zero, total product is at a maximum. (d) Marginal product becomes negative before average product becomes negative. For this, I will have to guess C. Just because there is no margin, doesn't mean everything else is not full. 49: Average fixed cost: (a) is intersected by marginal cost at its minimum point. (b) may be found for any output by adding average variable cost and average total cost. (c) graphs as a U-shaped curve. (d) declines so long as output increases. (C) is too extreme. It doesn't HAVE to be a U-shaped curve. (D) is also too narrow of a definitition. I think I would go with (B) since it seems to provide a definition (and usually that is what questions of this type seek). I will stop here because I feel like I am guessing too much, but hopefully what I have tried to approach is of some help.