Exam 6: Elasticity

Use the following to answer question: -(Table: Price Elasticity)Use Table: Price Elasticity.What is the price elasticity of demand (using the midpoint formula)between $2.25 and $2.00?

(Multiple Choice)

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Question 21

Sarah has been told she has only one week to finish some pottery for a show.Sarah has exhausted her supply of clay,and new clay is absolutely necessary for finishing her products.For Sarah,the price elasticity of demand for new clay right now is elastic.

(True/False)

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Question 22

If your purchases of shoes increase from 9 pairs per year to 11 pairs per year when your income increases from $19,000 to $21,000 a year,other things equal,for you,shoes are considered a(n)_____ good.

(Multiple Choice)

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Question 23

Use the following to answer question: -(Figure: The Demand Curve)Use Figure: The Demand Curve.Between prices $4 and $5,demand is _,and total revenue will _ if price increases.

(Multiple Choice)

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Question 24

The cross-price elasticity of demand of substitute goods is:

(Multiple Choice)

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Question 25

If two goods are complementary,we can assume that the cross-price elasticity of demand for these goods is:

(Multiple Choice)

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Question 26

A major determinant of the price elasticity of demand is the availability of substitutes.

(True/False)

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Question 27

If the price of a good increases by 15% and the quantity demanded falls by 20%,demand is:

(Multiple Choice)

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Question 28

When demand is _,a rise in price leads to a(n)_ in total revenue.

(Multiple Choice)

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Question 29

Nico rents 10% more DVDs when his income increases by 20%.Based on this information,we know that DVDs:

(Multiple Choice)

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Question 30

Tomas produces 100 cartons of free range eggs when the price is $5 and 150 cartons of free range eggs when the price is $7.What is the value of Tomas's price elasticity of supply?

(Multiple Choice)

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Question 31

If the income elasticity of demand for a good is negative,the good is said to be:

(Multiple Choice)

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Question 32

An important determinant of the price elasticity of demand is the:

(Multiple Choice)

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Question 33

Use the following to answer question: -(Figure: The Linear Demand Curve)Use Figure: The Linear Demand Curve.As a producer,you are interested in maximizing your total revenues in this market.At what price should you sell your good? What is the corresponding total revenue?

(Multiple Choice)

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Question 34

If two goods are complements,their cross-price elasticity of demand is:

(Multiple Choice)

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Question 35

An important determinant of the price elasticity of demand is the:

(Multiple Choice)

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Question 36

In general,we predict demand for Gala apples to be:

(Multiple Choice)

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Question 37

Suppose that the cross-price elasticity of demand for Mountain Dew with respect to the price of Coke is 0.7.This implies that the two goods are:

(Multiple Choice)

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Question 38

Suppose the cross-price elasticity of demand for butter and margarine is equal to 0.96 but the cross-price elasticity for water and lemons is -0.13.This means that butter and margarine are _,while water and lemons are _.

(Multiple Choice)

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Question 39

A price floor above equilibrium will cause a larger surplus when demand is _ and supply is _.

(Multiple Choice)

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Question 40

Showing 21 - 40 of 226

Exam 6: Elasticity

Use the following to answer question: -(Table: Price Elasticity)Use Table: Price Elasticity.What is the price elasticity of demand (using the midpoint formula)between $2.25 and $2.00?

Sarah has been told she has only one week to finish some pottery for a show.Sarah has exhausted her supply of clay,and new clay is absolutely necessary for finishing her products.For Sarah,the price elasticity of demand for new clay right now is elastic.

If your purchases of shoes increase from 9 pairs per year to 11 pairs per year when your income increases from $19,000 to $21,000 a year,other things equal,for you,shoes are considered a(n)_____ good.

Use the following to answer question: -(Figure: The Demand Curve)Use Figure: The Demand Curve.Between prices $4 and $5,demand is _____,and total revenue will _____ if price increases.

The cross-price elasticity of demand of substitute goods is:

If two goods are complementary,we can assume that the cross-price elasticity of demand for these goods is:

A major determinant of the price elasticity of demand is the availability of substitutes.

If the price of a good increases by 15% and the quantity demanded falls by 20%,demand is:

When demand is _____,a rise in price leads to a(n)_____ in total revenue.

Nico rents 10% more DVDs when his income increases by 20%.Based on this information,we know that DVDs:

Tomas produces 100 cartons of free range eggs when the price is $5 and 150 cartons of free range eggs when the price is $7.What is the value of Tomas's price elasticity of supply?

If the income elasticity of demand for a good is negative,the good is said to be:

An important determinant of the price elasticity of demand is the:

Use the following to answer question: -(Figure: The Linear Demand Curve)Use Figure: The Linear Demand Curve.As a producer,you are interested in maximizing your total revenues in this market.At what price should you sell your good? What is the corresponding total revenue?

If two goods are complements,their cross-price elasticity of demand is:

An important determinant of the price elasticity of demand is the:

In general,we predict demand for Gala apples to be:

Suppose that the cross-price elasticity of demand for Mountain Dew with respect to the price of Coke is 0.7.This implies that the two goods are:

Suppose the cross-price elasticity of demand for butter and margarine is equal to 0.96 but the cross-price elasticity for water and lemons is -0.13.This means that butter and margarine are _____,while water and lemons are _____.

A price floor above equilibrium will cause a larger surplus when demand is _____ and supply is _____.

First Principles

Economic Models: Trade-Offs and Trade

Consumer and Producer Surplus

Supply and Demand

Price Controls and Quotas: Meddling With Markets

Taxes

International Trade

Decision Making by Individuals and Firms

The Rational Consumer

Behind the Supply Curve: Inputs and Costs

Perfect Competition and the Supply Curve

Monopoly

Oligopoly

Monopolistic Competition and Product Differentiation

Externalities

Public Goods and Common Resources

The Economics of the Welfare State

Factor Markets and the Distribution of Income

Uncertainty, Risk, and Private Information

Graphs in Economics

Consumer Preferences and Consumer Choice

Filters

Use the following to answer question: -(Figure: The Demand Curve)Use Figure: The Demand Curve.Between prices $4 and $5,demand is _,and total revenue will _ if price increases.

When demand is _,a rise in price leads to a(n)_ in total revenue.

Suppose the cross-price elasticity of demand for butter and margarine is equal to 0.96 but the cross-price elasticity for water and lemons is -0.13.This means that butter and margarine are _,while water and lemons are _.

A price floor above equilibrium will cause a larger surplus when demand is _ and supply is _.