A) the minimum allowable price set by government, and it causes a surplus if effective. B) the maximum allowable price set by government, and it causes a shortage if effective. C) the equilibrium price. D) the maximum allowable price set by government, and it causes a surplus if effective. E) the minimum allowable price set by government, and it causes a shortage if effective. A) the minimum allowable price set by government, and it causes a surplus if effective. B) the maximum allowable price set by government, and it causes a shortage if effective. C) the equilibrium price. D) the maximum allowable price set by government, and it causes a surplus if effective. E) the minimum allowable price set by government, and it causes a shortage if effective.

Exam 4: Subtleties of the Supply and Demand Model

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If a 1 percent decrease in the price of breakfast cereals results in a 2 percent increase in the quantity demanded for breakfast cereals, then the price elasticity of the demand for breakfast cereals is

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Question 161

A price ceiling is

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Question 162

The price elasticity of supply can serve as an indicator of how much consumer expenditures will change with a change in price.

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Question 163

When price changes, the effect on quantity demanded is larger as time passes at least partly because

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Question 164

A given change in oil supply will result in a smaller change in the equilibrium price of oil if the

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Question 165

Assume that the price elasticity of demand equals 0.4 (e_d = 0.4). Given a 10 percent increase in price, there will be a

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Question 166

Explain, in words, the difference between a low price elasticity of demand and a high price elasticity of demand for a 15 percent increase in price.

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Question 167

Suppose the price of a good falls from $200 to $150, and the quantity demanded changes from 45,000 units to 50,500 units. Calculate the price elasticity of demand using the midpoint formula, and indicate whether demand is elastic, inelastic, or unit elastic.

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Question 168

If there are very few substitutes for a product, then an increase in its price causes

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Question 169

A perfectly inelastic demand curve has a price elasticity

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Question 170

Which of the following often occurs as a result of a price ceiling?

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Question 171

Suppose that, as the price of product A falls from $5 to $4, the quantity of A demanded increases from 2,000 to 6,000 units. In this case, what is the elasticity of demand, using the midpoint formula?

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Question 172

Suppose a 1 percent in the price of a good results in the quantity demanded changing by 0.2 percent. Then you know

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Question 173

The price elasticity of demand measures how much price changes given a change in demand.

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Question 174

Calculate the price elasticity of demand if a 2.6 percent change in the price of a product results in a 10.5 percent change in quantity demanded, and indicate whether demand is elastic, inelastic, or unit elastic.

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Question 175

Suppose that the revenue of a product increases when its price decreases. Then demand for the product must

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Question 176

Showing 161 - 176 of 176

Exam 4: Subtleties of the Supply and Demand Model

If a 1 percent decrease in the price of breakfast cereals results in a 2 percent increase in the quantity demanded for breakfast cereals, then the price elasticity of the demand for breakfast cereals is

A price ceiling is

The price elasticity of supply can serve as an indicator of how much consumer expenditures will change with a change in price.

When price changes, the effect on quantity demanded is larger as time passes at least partly because

A given change in oil supply will result in a smaller change in the equilibrium price of oil if the

Assume that the price elasticity of demand equals 0.4 (ed = 0.4). Given a 10 percent increase in price, there will be a

Explain, in words, the difference between a low price elasticity of demand and a high price elasticity of demand for a 15 percent increase in price.

Suppose the price of a good falls from $200 to $150, and the quantity demanded changes from 45,000 units to 50,500 units. Calculate the price elasticity of demand using the midpoint formula, and indicate whether demand is elastic, inelastic, or unit elastic.

If there are very few substitutes for a product, then an increase in its price causes

A perfectly inelastic demand curve has a price elasticity

Which of the following often occurs as a result of a price ceiling?

Suppose that, as the price of product A falls from $5 to $4, the quantity of A demanded increases from 2,000 to 6,000 units. In this case, what is the elasticity of demand, using the midpoint formula?

Suppose a 1 percent in the price of a good results in the quantity demanded changing by 0.2 percent. Then you know

The price elasticity of demand measures how much price changes given a change in demand.

Calculate the price elasticity of demand if a 2.6 percent change in the price of a product results in a 10.5 percent change in quantity demanded, and indicate whether demand is elastic, inelastic, or unit elastic.

Suppose that the revenue of a product increases when its price decreases. Then demand for the product must

The Central Idea

Observing and Explaining the Economy

The Supply and Demand Model

The Demand Curve and the Behavior of Consumers

The Supply Curve and the Behavior of Firms

The Efficiency of Markets

Costs and the Changes at Firms Over Time

The Rise and Fall of Industries

Monopoly

Product Differentiation, Monopolistic Competition, and Oligopoly

Antitrust Policy and Regulation

Labor Markets

Taxes, Transfers, and Income Distribution

Public Goods, Externalities, and Government Behavior

Capital and Financial Markets

Macroeconomics: the Big Picture

Measuring the Production, Income, and Spending of Nations

The Spending Allocation Model

Unemployment and Employment

Productivity and Economic Growth

Money and Inflation

The Nature and Causes of Economic Fluctuations

The Economic Fluctuations Model

Using the Economic Fluctuations Model

Fiscal Policy

Monetary Policy

Economic Growth Around the World

International Trade

International Finance

Filters

Assume that the price elasticity of demand equals 0.4 (e_d = 0.4). Given a 10 percent increase in price, there will be a