Econ 200 Homework 2 Due Friday February 20thname ✓ Solved

Econ 200 Homework 2: Due Friday, February 20th Name: _______________________ Row: ________ NOTE: The first 7 questions can be done entirely online, but the last question is a graphical question so it must either be handed in after class or scanned and placed in the Question 8 dropbox. Multiple Choice (1 pt each) Use the graph below to answer question 1 - 3: 1. Soda manufacturers use corn syrup to produce soda. Which graph illustrates the impact of an increase in the price of corn syrup on the market for soda? a. A b.

B c. C d. D 2. Consumers view soda and bottled iced teas as substitute goods. Which of the graphs illustrates the impact of a decrease in the price of bottled iced tea on the market for soda? a.

A b. B c. C d. D 3. In order to get into law school, students must take the LSAT exam and many companies offer courses meant to prepare students for the LSAT.

As a result, LSAT prep courses are a complementary good to law school. Which of the diagrams above accurately shows the impact that a decrease in the price of law school (lower law school tuition), ceteris paribus, has on the market for LSAT prep courses? a. A b. B c. C d.

D Figure 4-1 shows Kendra's demand for ice-cream cones curve. Use this Figure to answer the following question. Figure . Refer to Figure 4-1. Kendra's marginal benefit from consuming the second ice cream cone is a. .50 b. .00 c.