An Excel template is provided for your Problem Sets. Each problem is presented on a separate worksheet represented by the tabs at the bottom of the Excel worksheet.

You must submit only one Excel file for your Problem Sets. To receive full credit, all work must be shown and the final answer(s) must be highlighted in yellow, unless answers are derived from a graph and/or tables.

Submit your completed assignment by following the directions linked below. Please check the Course Calendar for specific due dates.

Save your assignment as an Excel spreadsheet. (Mac users, please remember to append the “.xlsx” extension to the filename.) The name of the file should be your first initial and last name, followed by an underscore and the name of the assignment, and an underscore and the date. An example is shown below:

Question #1: Draw a perfectly inelastic supply curve.

Question #2: If elasticity of demand is 0.5 and price is lowered from $20 to $19, by what percentage will quantity demanded rise?

Question #3: (a) Illustrate a tax increase. (b) State what happens to equilibrium price and quantity.

Question #4: If the price of eye surgery falls by 50-percent and the quantity of contact lenses demanded falls by 25-percent, find the cross-price elasticity of demand for theses two goods.

Question #5: A perfect competitor would never charge more than market price because __; the perfect competitor would never charge less than market price because _

Question #6: How much is the firm’s most efficient output?

Question #7: At an output of 9, MC = 20 and AVC = $25. At an output of 10, MC = $32 and AVC = $26. What is the lowest price the firm will accept in the short-run?

Question #8: The perfect competitor operates at the __ point of his or her average total cost curve in the long-run.

Question #9: A monopoly is a firm that has _____substitutes.

Question #10: The five barriers to entering a monopolized industry are:

Question #11: There are basically only two justifications for monopolies:

Question #12: The main economic criticism of monopolies and big business in general is that they are __.

Question #13: Price discrimination occurs when a seller charges __ for the same good or service.

Question #14: The monopolistic competitor’s demand curve slopes _____