Exam 6: Elasticity

Demand for vegetables at a small farmers' market is steady,but the supply of vegetables has decreased because of a drought.This is good news for farmers if demand is ___ and the _ effect outweighs the ___ effect.

(Multiple Choice)

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Question 101

Use the following to answer question: -(Figure: The Demand Curve)Use Figure: The Demand Curve.If the price is $5,total revenue is:

(Multiple Choice)

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Question 102

The price elasticity of demand for soft drinks has been estimated to be 0.55.If the government enacts a major increase in the tax on imported sugar (a major ingredient in soft drink manufacturing),how will that affect total expenditures on soft drinks,all other things equal?

(Multiple Choice)

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Question 103

The director of River City Public Transport recently stated,"The last seven times we increased bus fares,revenues dropped." This remark suggests the demand for bus service is elastic.

(True/False)

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Question 104

Which characteristic is NOT true of a good with elastic demand?

(Multiple Choice)

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Question 105

When the price of chocolate-covered peanuts increases from $1.55 to $2.00,the quantity demanded decreases from 220 to 180.If the price is $1.55,total revenue is _,and if the price is $2.00,total revenue is _.

(Multiple Choice)

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Question 106

Suppose the price of barley increases by 16.53%.If breweries buy 3.28% less barley after the price increase,the total revenue for barley producers will ___ because the _ effect is greater than the ___ effect.

(Multiple Choice)

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Question 107

Suppose the price elasticity of demand for fishing lures equals 1.5 in South Carolina and 0.63 in Alabama.To increase revenue,fishing lure manufacturers should:

(Multiple Choice)

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Question 108

The cross-price elasticity of electricity with respect to the price of natural gas has been estimated as being equal to 0.2.This implies that:

(Multiple Choice)

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Question 109

The price of coffee increases by 10%,and as a result,Alex purchases fewer doughnuts.For Alex,coffee and doughnuts are:

(Multiple Choice)

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Question 110

Use the following to answer question: -(Figure: The Demand Curve)Use Figure: The Demand Curve.By the midpoint method,the price elasticity of demand between $6 and $7 is approximately:

(Multiple Choice)

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Question 111

If the percentage change in the quantity demanded of a good is greater than the percentage change in income and in the same direction,then this good will have an income elasticity _1,and it is a(n)_ good.

(Multiple Choice)

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Question 112

If demand _____ and the University of Michigan increases the price of football tickets,revenues will increase.

(Multiple Choice)

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Question 113

When the price of chocolate-covered peanuts decreases from $1.10 to $0.95,the quantity demanded increases from 190 bags to 215 bags.In this price range,the demand for chocolate covered peanuts is _,and total revenue will _ when price decreases.

(Multiple Choice)

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Question 114

Use the following to answer question: -(Figure: The Linear Demand Curve)Use Figure: The Linear Demand Curve.If the price is initially $10,then falls to $9,this will result in a(n)_ in quantity demanded and a(n)_ in total revenue.

(Multiple Choice)

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Question 115

The university hopes to raise more revenue by increasing parking fees.This plan will work only if:

(Multiple Choice)

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Question 116

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 $1.00 and $0.75?

(Multiple Choice)

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Question 117

The income elasticity of demand for eggs has been estimated to be 0.57.If income grows by 5% in a period,all other things unchanged,demand will:

(Multiple Choice)

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Question 118

A demand curve that is perfectly inelastic is:

(Multiple Choice)

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Question 119

The ratio of the percentage change in quantity demanded to the percentage change in price is the _____ elasticity of demand.

(Multiple Choice)

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Question 120

Showing 101 - 120 of 226

Exam 6: Elasticity

Demand for vegetables at a small farmers' market is steady,but the supply of vegetables has decreased because of a drought.This is good news for farmers if demand is _____ and the _____ effect outweighs the _____ effect.

Use the following to answer question: -(Figure: The Demand Curve)Use Figure: The Demand Curve.If the price is $5,total revenue is:

The price elasticity of demand for soft drinks has been estimated to be 0.55.If the government enacts a major increase in the tax on imported sugar (a major ingredient in soft drink manufacturing),how will that affect total expenditures on soft drinks,all other things equal?

The director of River City Public Transport recently stated,"The last seven times we increased bus fares,revenues dropped." This remark suggests the demand for bus service is elastic.

Which characteristic is NOT true of a good with elastic demand?

When the price of chocolate-covered peanuts increases from $1.55 to $2.00,the quantity demanded decreases from 220 to 180.If the price is $1.55,total revenue is _____,and if the price is $2.00,total revenue is _____.

Suppose the price of barley increases by 16.53%.If breweries buy 3.28% less barley after the price increase,the total revenue for barley producers will _____ because the _____ effect is greater than the _____ effect.

Suppose the price elasticity of demand for fishing lures equals 1.5 in South Carolina and 0.63 in Alabama.To increase revenue,fishing lure manufacturers should:

The cross-price elasticity of electricity with respect to the price of natural gas has been estimated as being equal to 0.2.This implies that:

The price of coffee increases by 10%,and as a result,Alex purchases fewer doughnuts.For Alex,coffee and doughnuts are:

Use the following to answer question: -(Figure: The Demand Curve)Use Figure: The Demand Curve.By the midpoint method,the price elasticity of demand between $6 and $7 is approximately:

If the percentage change in the quantity demanded of a good is greater than the percentage change in income and in the same direction,then this good will have an income elasticity _____1,and it is a(n)_____ good.

If demand _____ and the University of Michigan increases the price of football tickets,revenues will increase.

When the price of chocolate-covered peanuts decreases from $1.10 to $0.95,the quantity demanded increases from 190 bags to 215 bags.In this price range,the demand for chocolate covered peanuts is _____,and total revenue will _____ when price decreases.

Use the following to answer question: -(Figure: The Linear Demand Curve)Use Figure: The Linear Demand Curve.If the price is initially $10,then falls to $9,this will result in a(n)_____ in quantity demanded and a(n)_____ in total revenue.

The university hopes to raise more revenue by increasing parking fees.This plan will work only if:

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 $1.00 and $0.75?

The income elasticity of demand for eggs has been estimated to be 0.57.If income grows by 5% in a period,all other things unchanged,demand will:

A demand curve that is perfectly inelastic is:

The ratio of the percentage change in quantity demanded to the percentage change in price is the _____ elasticity of demand.

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

Demand for vegetables at a small farmers' market is steady,but the supply of vegetables has decreased because of a drought.This is good news for farmers if demand is ___ and the _ effect outweighs the ___ effect.

When the price of chocolate-covered peanuts increases from $1.55 to $2.00,the quantity demanded decreases from 220 to 180.If the price is $1.55,total revenue is _,and if the price is $2.00,total revenue is _.

Suppose the price of barley increases by 16.53%.If breweries buy 3.28% less barley after the price increase,the total revenue for barley producers will ___ because the _ effect is greater than the ___ effect.

If the percentage change in the quantity demanded of a good is greater than the percentage change in income and in the same direction,then this good will have an income elasticity _1,and it is a(n)_ good.

When the price of chocolate-covered peanuts decreases from $1.10 to $0.95,the quantity demanded increases from 190 bags to 215 bags.In this price range,the demand for chocolate covered peanuts is _,and total revenue will _ when price decreases.

Use the following to answer question: -(Figure: The Linear Demand Curve)Use Figure: The Linear Demand Curve.If the price is initially $10,then falls to $9,this will result in a(n)_ in quantity demanded and a(n)_ in total revenue.