AGEC 105
EQ #9
October 16, 2013
This EQ is worth 3 points.
Question 1
Given the market supply schedule below:
Point
Price
Quantity
Supplied
A
1
2
B
2
3
C
3
6
D
4
8
(1pt)
(a) Calculate the own-price elasticity of supply
between points C and D. Show all work.
(1/2pt)
(b) Characterize the magnitude of the own-price
elasticity of supply – elastic, inelastic, or
unitary elastic.
Question 2
Consider the following diagram:
P
S
$4
$2
30
Q (million)
(1/2pt) (a) On the basis of this diagram, producer surplus is equal to
$___________ million.
(1/2pt) (b) Another term for producer surplus is _____________.
Question 3
(1/2pt) Given the diagram below, define Pe and Qe.
Psoybeans
S
Pe
D
Qe
Qsoybeans
Random Question:
Name one of the three economists who were
awarded the Nobel Prize in 2013.