Tackle the Test: Free-Response Questions

466

  1. Question

    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

    Rubric for FRQ 1 (5 points)

    1 point: The price elasticity of demand measures the responsiveness of the quantity demanded to price changes.

    1 point: (Change in quantity demanded/average quantity demanded)/(change in price/average price)

    1 point: 0.69

    1 point: Decrease

    1 point: 6.9%

  2. Question

    IbIiJdLWTfCxr9RhXG7KmOU+AsQNNh9zFwMlZkC5dU1GcLRq11IaroTRzub6/e9ohjTrsPAf0kzUoUvsoT5qSA0abTvqWeajg20cKsm+l37Q7i0VbVIgy7/A0DSDNaYxg31S7DW3+D3+vfqy+iEcq65VOv1Z1UR7xTfD6bT/CJ3y0Q2l1f8liQ9rvW0M8lQ8Vu7F2KYMNPc/JW7J0198pVVtmGrkmk5OKDtAMQ7qjeq14NPxmYPzRqXx1lMCxDu7ejykJI7vVTQBoiVDl5957/JllaoOuJkTDH2JrCj4As7R5Q4SYOqUyhD052SSatiyKq1oX4LOrj1ACa62L2PEKBj2jd0LhXpuWwxxpg9n5VL0WeGjlBnXguflyV0usLrxI5IHQhhvlGkxaHH/iELwCUgeZujhGj1d5uFMwiligewFJFLWhGhMWg96M4jnzfLIc0DLU5DDkAt3jebC1QnrdgPQP9YWkfugYYZbRlMTjbfrJnX9VoEFRT0ud4BfLV/jr4wEV13FvKbUWnxZacIm6zhImWRNiC66hEOV+EYYow+hMIMigBW1jZ9pITeXh1hv5/5R1IJdym8GhzaXBRlwBx1bDhsRpwU383XM7TP6GwdiA0y1RSyU7OvZAPPNKwLQpJ3nkTGpQyyW4Va4mWXQhNoFhNRlOjlRLRS7Dv1eJy5BBRuAYtFErlrGXk+37klH+AekU31ASekdd+JW25yTSz6QUsxbAxs9l2vlqZ4bSB7dhlp8iAsJ/hsGkjgPgx1DS5frc73HWtKRN2qOY2qQl+NxiGv2t2GVzQeiVtc2NN7ZtvsfpStAqmUPdmXkBzoy/VG4+PZJdIQCAKJCpMqT6PgiLrjLI/rc2DNPolwLiHIb5FFn0z9NBSjcUBj6Pynch+jUwcaeE2+tn0sfqh77xO44Nf+Ij9NGhvOSAyL5Eh6xqVws4aDVlhee9rGf+MKtyJ4hKzzKzLMBb+JFWOD925+hjo/IOKnkFIOa/2/j5oZLkU7XT9zC/vTHMbLR/o7W7ymu9oQcvgU+dso6TOSjX4+80Py5rEtSOoSX7ovo9v4Tszc8hy87f6akVglS16egxahj55pY1QHI5q6/itIJQ9/fY9vY07MKwXL2USJII2gFMobu8yTKJw==
    Assume the price of an inferior good increases.