IC #6 Grading Key (2-23-09)

1. Which of the following curve shifts is most likely to result in an indeterminate impact on market price?

a. [D (-3)

b. [D, [S * (-0)

c. \D, [S (-2)

d. [D, \S (-2)

e. c and d (-3)

2. What is the market equilibrium Q if you are given the market D and market S equations below for a product?

D: P = 20 - 1.5Q

S: P = 4 + .5Q

a. 8 *(-0)

b. 12 (-2)

c. 16 (-2)

d. 6 (-3)

e. 48 (-3)