1. Suppose the demand for Staplers is given by ( Q=25-0.02 p+0.005 p_{p} ), where ( Q ) is the quantity of Stapler's demanded (in 1000s), ( p ) is the price of a stapler, and ( p_{p} ) is the price of paper clips. How much does ( Q ) change if the price of staplers changes slightly (i.e. the partial derivative of demand with respect to ( p ) )? A) -0.005 B) -0.02 C) 0.02 D) -25 E) 0.005 2. The expression "increase in quantity supplied" is illustrated graphically as a A) leftward shift in the supply curve. B) rightward shift in the supply curve. C) movement up along the supply curve. D) movement down along the supply curve. 3. If price is initially above the equilibrium level, A) the supply curve will shift rightward. B) the supply curve will shift leftward. C) excess supply exists. D) all firms can sell as much as they want. 4. A competitive equilibrium is described by A) a price only. B) a quantity only. C) the excess supply minus the excess demand. D) a price and a quantity. 5. If the price of orange juice rises ( 10 % ), and as a result the quantity demanded falls by ( 8 % ), the price elasticity of demand for orange juice is A) -1.25 B) -80.0 C) -0.80 D) -10.0 E) None of the above.
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02p + 0.005p_p \) with respect to \( p \), we differentiate \( Q \) with respect to \( p \): \[ \frac{\partial Q}{\partial p} = \frac{\partial}{\partial p} (25 - 0.02p + 0.005p_p) \] Since \( 25 \) and \( 0.005p_p \) are constants with respect to \( p \), their Show more…
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