For the multiple choice, please circle the correct answer. For other questions, answer appropriately. The questions are each worth 2 points.
1. In a competitive market with a large number of buyers and sellers, an individual consumer faces a supply that:
a. has an elasticity of one.
b. is perfectly inelastic.
c. has an elasticity of zero.
d. is perfectly elastic.
e. none of the above.
2. Product demand will be less elastic in:
a. the short run.
b. the long run.
c. if there are many substitutes for the product.
d. the product is inferior.
e. none of the above.
3. Which of the following would be reasonable for own-price elasticity for pork demand?
a. -8.0
b. -0.8
c. 0.0
d. 1.0
e. 10.0
4. The elasticity of demand for fluid milk is -0.6. If milk price were to decrease by 10%, we would expect the quantity of milk demanded to:
a. decrease by 6%
b. decrease by 3%
c. remain unchanged
d. increase by 3%
e. increase by 6%
5. A market is competitive if:
a. there are many buyers.
b. there are few sellers.
c. there are few buyers.
d. there are many sellers.
e. a&d.
6. In which of the following seasons would you expect soybean prices to be their lowest?
a. winter
b. spring
c. summer
d. fall
7. The cattle price cycle is measured from trough to trough in cattle price. It is approximately how long?
a. 6 months
b. 1 year
c. 4 years
d. 10 years
e. 13 years
