Part II: Multiple Choice Questions(3 points * 3 = 9 points)

1. Demand for park visits is Q =10,000 100P. How many visitors will attend if the park charges a $20.00 admission fee?
2. 2,000
3. 4,000
4. 6,000
5. 8,000

1. Suppose the demand for vanilla ice cream was described by the equation Q = 20 - p, and the supply was described by Q = 10 + p. What are the equilibrium price (P*) and quantity (Q*)?
2. P* = -40, Q* =20
3. P* = 5, Q* = 15
4. P* = 10, Q* =50
5. P* = 25, Q* = -25

1. When he prices of materials required in bathtub production increase, what effect (if any) does it have on the supply curve for bathtubs?

Price Quantity\fc. The price of bathtubs rise Price Quantity