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Man Eco 2

The document describes a series of 10 questions related to economics and operations research concepts. It provides multiple choice responses to the questions along with feedback indicating whether the responses are correct or incorrect. The questions cover topics like price elasticity, marginal utility, queueing theory, decision theory, and linear programming. For each question, the document gives the response, states whether it is correct or incorrect, and provides a score.

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James Angelo Arago
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160 views4 pages

Man Eco 2

The document describes a series of 10 questions related to economics and operations research concepts. It provides multiple choice responses to the questions along with feedback indicating whether the responses are correct or incorrect. The questions cover topics like price elasticity, marginal utility, queueing theory, decision theory, and linear programming. For each question, the document gives the response, states whether it is correct or incorrect, and provides a score.

Uploaded by

James Angelo Arago
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Question 1

 HB Merchandising is the major supplier of automotive parts in a local town. As the
company becomes well-known, it started increasing the price of its best-selling
automotive accessory from P2,000 to P2,500. As a result, the quantity of their product
sold fell from 700 to 500. Using the concept of price elasticity, compute for the percent
(%) change in quantity.
Response: 22.22%
Feedback: INCORRECT. Be mindful of the given values; what is asked from the problem is the
percent (%) change in quantity and not price.
Score: 0 out of 1 No

Question 2
 HB Merchandising is the major supplier of automotive parts in a local town. As the
company becomes well-known, it started increasing the price of its best-selling
automotive accessory from P2,000 to P2,500. As a result, the quantity of their product
sold fell from 700 to 500. Using the concept of price elasticity, compute for the percent
(%) change in price.
Response: 22.22%
Feedback:
CORRECT! The formula to compute for the given problem is:

Score: 1 out of 1 Yes

Question 3
 Which of these refers to the additional utility that comes from consuming one (1) more unit of a good,
given that the amounts of all other goods consumed are held constant?
Response: Marginal utility
Feedback: CORRECT! Economists typically assume that as the consumption of a good increases, the
marginal utility from an additional unit of a good diminishes.
Score: 1 out of 1 Yes
Question 4
 Which optimization technique is based on the probability of customer waiting behavior?
Response: Queueing Theory
Feedback: CORRECT! Queueing theory examines every component of waiting in line to be served,
including the arrival process, service process, number of servers, and number of customers in a system.
Score: 1 out of 1 Yes

Question 5
 HB Merchandising is the major supplier of automotive parts in a local town. As the
company becomes well-known, it started increasing the price of its best-selling
automotive accessory from P2,000 to P2,500. As a result, the quantity of their product
sold fell from 700 to 500. Determine the demand elasticity of the given product.
Response: Elastic
Feedback: CORRECT! The given product is considered elastic because the quotient, which can be
derived from the price elasticity, is 1.5 and is therefore greater than one (1).
Score: 1 out of 1 Yes

Question 6
 HB Merchandising is the major supplier of automotive parts in a local town. As the
company becomes well-known, it started increasing the price of its best-selling
automotive accessory from P2,000 to P2,500. As a result, the quantity of their product
sold fell from 700 to 500. Compute for the price elasticity of demand.
Response: 1.5
Feedback:
CORRECT! The solution to compute for the given problem is
Score: 1 out of 1 Yes

Question 7
 Sweet Bakery is known for its tasty pastries. During the first month of production, it sold
750 cinnamons at the price of P60. Increasing demand encouraged them to supply
1,500 on the following month at the price of P80. Determine the supply elasticity of
cinnamons.
Response: Perfectly inelastic
Feedback: INCORRECT. Based on the price elasticity coefficients, a product would have perfectly
inelastic supply if the price elasticity is equal to zero.
Score: 0 out of 1 No

Question 8
 Sweet Bakery is known for its tasty pastries. During the first month of production, it sold
750 cinnamons at the price of P60. Increasing demand encouraged them to supply
1,500 on the following month at the price of P80. Calculate the price elasticity of supply.
Response: 3.03
Feedback:
CORRECT! The solution to compute for the given problem is
Score: 1 out of 1 Yes

Question 9
 Which optimization technique is concerned with the selection of the best course of action from several
available options or alternatives?
Response: Decision Theory
Feedback: CORRECT! Decision theory enables the decision-maker to analyze a set of complex
situations with many alternatives and many different consequences.  
Score: 1 out of 1 Yes

Question 10
 Which optimization technique seeks to achieve the best possible solution under certain restraining
conditions?
Response: Linear Programming
Feedback: CORRECT! Linear programming is used in solving practical problems such as the allocation
of resources using linear functions where the variables involved are subject to constraints.
Score: 1 out of 1 

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