MIDTERM EXAMINATION IN APPLIED ECONOMICS

2nd Semester, A.Y. 2019-2020

Directions:
1. Graphs must be drawn in graphing paper.
2. Refrain from talking with one another. Ask me for questions.
3. The use of cellphone and any kind of paper (e.g. scratch papers) for computation is
prohibited. Use a calculator and the back pages of the test paper for this purpose.
4. You are not allowed to leave the classroom if you are not yet finished.
5. Anyone who is caught cheating will automatically get a zero score in this test.

TEST I PROBLEM SOLVING/ILLUSTRATIONS/SHORT ANSWERS (60 POINTS)

The following table shows the demand and supply schedules for hotdogs and eggs at Canteen ni
Aling Pesing of The Fisher Mall University during the 1st Semester, A.Y. 2019-2020:

𝑌2019 = P25,000.00; 𝑌2020 = P20,000 𝑌2019 = P30,000.00; 𝑌2020 = P60,000

Level Hotdogs Eggs
Price (in Quantity Quantity Price (in Quantity Quantity
pesos) demanded supplied pesos) demanded supplied
1 10.50 1,000 7,000 9.00 1,000 5,000
2 9.00 1,500 5,000 8.50 2,000 4,500
3 8.00 2,500 2,500 7.00 2,500 3,500
4 7.00 3,000 1,000 6.50 3,000 3,000
5 6.00 4,500 500 5.00 4,500 2,000

1. What is the equilibrium price for hotdogs? 1pt. ___________________

2. What is the equilibrium quantity for hotdogs? 1 pt. ________________

3. If Aling Pesing decides to set the price at P9.00, how many hotdogs will be sold? 1 pt.
___________

4. If the price of hotdog is set at P6.00, what is its effect to quantity of hotdogs? Write the two (2)
correct choices by writing the letters only. 2 pts.
a. Excess of supply by 4,000 e. Shortage of demand by 4,000

b. Shortage of supply by 5,000 f. Shortage of supply by 4,000

c. Excess of demand by 4,000 g. Excess of demand by 5,000

d. Shortage of demand by 5,000 h. Excess of supply by 5,000

5. What is the equilibrium price for eggs? 1 pt. ___________________

6. What is the equilibrium quantity for eggs? 1 pt. ________________

7. If Aling Pesing decides to set the price at P5.00, how many eggs will not be sold? 1 pt.
___________

8. If the price of egg is set at P8.50, how much is the sales revenue of Aling Pesing? 1 pt.
___________
9. Given the same scenario in no. 8, how many excess eggs does she have? 1 pt.
__________________

10. At price P7.00, which of the two products has a higher quantity demanded? 1 pt.
_______________