Question 1

If the value of the cross price elasticity of demand of good X for a change in good Y's price is greater than 0, then:

Accepted Answer

A)  the goods are complementary. 
B)  the goods are substitutes. 
C)  demand is said to be inelastic. 
D)  the goods are superior goods. 
E)  demand is said to be elastic. 
A)  the goods are complementary. 
B)  the goods are substitutes. 
C)  demand is said to be inelastic. 
D)  the goods are superior goods. 
E)  demand is said to be elastic. B

Question 2

Given the demand function QX = 5,000 - 250PX +120PY +.04I where PY = $50.00 and I = $60,000, the total revenue equation is:
TR = 53.6QX -.004QX.

Accepted Answer

A) True 
 B)False  False

Question 3

The responsiveness of the quantity demanded to a change in the value of the income variable in the demand function is the income elasticity of demand.

Accepted Answer

A) True 
 B)False  True

Question 4

If an individual consumer purchases less of a good when his or her income increases, that good is said to be an inferior good.

Accepted Answer

A) True 
 B)False

Question 5

Given the demand function QX = 5,000 - 250PX +120PY +.04I where PY = $50.00 and I = $60,000, the maximum total revenue that can be attained is $118,240.

Accepted Answer

A) True 
 B)False

Question 6

The price of a firm's product times the quantity demanded of that product is:

Accepted Answer

A)  total revenue 
B)  marginal revenue 
C)  the firm's demand curve 
D)  price elasticity of demand 
E)  average revenue 
A)  total revenue 
B)  marginal revenue 
C)  the firm's demand curve 
D)  price elasticity of demand 
E)  average revenue

Question 7

Given the demand function QX = 5,000 - 250PX +120PY +.04I where PY = $50.00 and I = $60,000, the marginal revenue equation is:
MR = 53.6-.008QX

Accepted Answer

A) True 
 B)False

Question 8

Complete the following table.

Accepted Answer

The answer of Complete the following table.
  ...

Question 9

Complete the following table:

Accepted Answer

The answer of Complete the following table:
  ...

Question 10

Given the following demand curve:

Accepted Answer

@#IMG-DLM& Determine the corresponding t

Question 11

Given the demand function QX = 5,000 - 250PX +120PY +.04I where
PY = $50.00 and I = $60,000, what is the equation of the demand curve for X?

Accepted Answer

A)  QX = 5000 - 250PX 
B)  QX = 5000 + 250PX 
C)  QX= 8550 - 250PX 
D)  QX = 13,400 - 250PX 
E)  QX = 13,00 + 250PX 
A)  QX = 5000 - 250PX 
B)  QX = 5000 + 250PX 
C)  QX= 8550 - 250PX 
D)  QX = 13,400 - 250PX 
E)  QX = 13,00 + 250PX

Question 12

High-Time, Inc. manufactures low price plastic wrist watches. High-Time is considering lowering the price of its watches from the current $8 per unit to $7 per unit. High-Time currently sells 20,000 units per month. The firm's marketing department estimates the price elasticity of demand to be -3 over this price range.
a. If High-Time lowers the price, will the total revenue increase, decrease or remain unchanged? Why?
b. If High-Time lowers the price, what will be the new level of quantity demanded? Of new total revenue?

Accepted Answer

a. Because the absolute value of the pri

Question 13

Given the demand function QX = 5,000 - 250PX +120PY +.04I where PY = $50.00 and I = $60,000, marginal revenue will be zero where Q = 6700.

Accepted Answer

A) True 
 B)False

Question 14

Marginal revenue is the rate of change of total revenue with respect to price.

Accepted Answer

A) True 
 B)False

Question 15

The rate of change of total revenue from selling one more unit of a product is its:

Accepted Answer

A)  average revenue 
B)  the firm's demand curve 
C)  price elasticity of demand 
D)  total revenue 
E)  marginal revenue 
A)  average revenue 
B)  the firm's demand curve 
C)  price elasticity of demand 
D)  total revenue 
E)  marginal revenue

Question 16

Arc marginal revenue measures the average rate of change of total revenue with respect to quantity sold over some range of output.

Accepted Answer

A) True 
 B)False

Question 17

If the absolute value of the price elasticity of demand is 0, then the quantity demanded is unitary elastic with respect to price.

Accepted Answer

A) True 
 B)False

Question 18

Given the demand function QX = 5,000 - 250PX +120PY +.04I where PY = $50.00 and I = $60,000, the QX equation is QX = 13,400 - 250Px.

Accepted Answer

A) True 
 B)False

Question 19

Determinants of supply are those variables other than a good's own price that change the quantity of the good that sellers are willing and able to sell.

Accepted Answer

A) True 
 B)False

Question 20

Marginal revenue at a specific quantity is the slope of the total revenue curve at that quantity demanded.

Accepted Answer

A) True 
 B)False

If the value of the cross price elasticity of demand of good X for a change in good Y's price is greater than 0, then:

Given the demand function Q_X = 5,000 - 250P_X +120P_Y +.04I where P_Y= $50.00 and I = $60,000, the total revenue equation is: TR = 53.6Q_X-.004Q_X.

The responsiveness of the quantity demanded to a change in the value of the income variable in the demand function is the income elasticity of demand.

If an individual consumer purchases less of a good when his or her income increases, that good is said to be an inferior good.

Given the demand function Q_X = 5,000 - 250P_X +120P_Y +.04I where P_Y= $50.00 and I = $60,000, the maximum total revenue that can be attained is $118,240.

The price of a firm's product times the quantity demanded of that product is:

Given the demand function Q_X = 5,000 - 250P_X +120P_Y +.04I where P_Y= $50.00 and I = $60,000, the marginal revenue equation is: MR = 53.6-.008Q_X

Complete the following table.

Complete the following table:

Given the following demand curve:

Given the demand function Q_X = 5,000 - 250P_X +120P_Y +.04I where P_Y= $50.00 and I = $60,000, what is the equation of the demand curve for X?

Given the demand function Q_X = 5,000 - 250P_X +120P_Y +.04I where P_Y= $50.00 and I = $60,000, marginal revenue will be zero where Q = 6700.

Marginal revenue is the rate of change of total revenue with respect to price.

The rate of change of total revenue from selling one more unit of a product is its:

Arc marginal revenue measures the average rate of change of total revenue with respect to quantity sold over some range of output.

If the absolute value of the price elasticity of demand is 0, then the quantity demanded is unitary elastic with respect to price.

Given the demand function Q_X = 5,000 - 250P_X +120P_Y +.04I where P_Y= $50.00 and I = $60,000, the Q_X equation is Q_X = 13,400 - 250Px.

Determinants of supply are those variables other than a good's own price that change the quantity of the good that sellers are willing and able to sell.

Marginal revenue at a specific quantity is the slope of the total revenue curve at that quantity demanded.

Introduction, Basic Principles, and Methodology

Topics in Demand Analysis and Estimation

Economic Forecasting

Production Analysis

Cost of Production

Profit Analysis of the Firm

Perfect Competition and Monopoly

Monopolistic Competition and Oligopoly

Games, Information and Strategy

Topics in Pricing and Profit Analysis

Factor Markets

Fundamentals of Project Evaluation

Risk in Project Analysis

Economics of Public Sector Decisions

Legal and Regulatory Environment of the Firm

Filters

Exam 2: Revenue of the Firm

If the value of the cross price elasticity of demand of good X for a change in good Y's price is greater than 0, then:

Given the demand function QX = 5,000 - 250PX +120PY +.04I where PY = $50.00 and I = $60,000, the total revenue equation is: TR = 53.6QX -.004QX.

The responsiveness of the quantity demanded to a change in the value of the income variable in the demand function is the income elasticity of demand.

If an individual consumer purchases less of a good when his or her income increases, that good is said to be an inferior good.

Given the demand function QX = 5,000 - 250PX +120PY +.04I where PY = $50.00 and I = $60,000, the maximum total revenue that can be attained is $118,240.

The price of a firm's product times the quantity demanded of that product is:

Given the demand function QX = 5,000 - 250PX +120PY +.04I where PY = $50.00 and I = $60,000, the marginal revenue equation is: MR = 53.6-.008QX

Complete the following table.

Complete the following table:

Given the following demand curve:

Given the demand function QX = 5,000 - 250PX +120PY +.04I where PY = $50.00 and I = $60,000, what is the equation of the demand curve for X?

Given the demand function QX = 5,000 - 250PX +120PY +.04I where PY = $50.00 and I = $60,000, marginal revenue will be zero where Q = 6700.

Marginal revenue is the rate of change of total revenue with respect to price.

The rate of change of total revenue from selling one more unit of a product is its:

Arc marginal revenue measures the average rate of change of total revenue with respect to quantity sold over some range of output.

If the absolute value of the price elasticity of demand is 0, then the quantity demanded is unitary elastic with respect to price.

Given the demand function QX = 5,000 - 250PX +120PY +.04I where PY = $50.00 and I = $60,000, the QX equation is QX = 13,400 - 250Px.

Determinants of supply are those variables other than a good's own price that change the quantity of the good that sellers are willing and able to sell.

Marginal revenue at a specific quantity is the slope of the total revenue curve at that quantity demanded.

Introduction, Basic Principles, and Methodology

Topics in Demand Analysis and Estimation

Economic Forecasting

Production Analysis

Cost of Production

Profit Analysis of the Firm

Perfect Competition and Monopoly

Monopolistic Competition and Oligopoly

Games, Information and Strategy

Topics in Pricing and Profit Analysis

Factor Markets

Fundamentals of Project Evaluation

Risk in Project Analysis

Economics of Public Sector Decisions

Legal and Regulatory Environment of the Firm

Filters

Given the demand function Q_X = 5,000 - 250P_X +120P_Y +.04I where P_Y= $50.00 and I = $60,000, the total revenue equation is: TR = 53.6Q_X-.004Q_X.

Given the demand function Q_X = 5,000 - 250P_X +120P_Y +.04I where P_Y= $50.00 and I = $60,000, the maximum total revenue that can be attained is $118,240.

Given the demand function Q_X = 5,000 - 250P_X +120P_Y +.04I where P_Y= $50.00 and I = $60,000, the marginal revenue equation is: MR = 53.6-.008Q_X

Given the demand function Q_X = 5,000 - 250P_X +120P_Y +.04I where P_Y= $50.00 and I = $60,000, what is the equation of the demand curve for X?

Given the demand function Q_X = 5,000 - 250P_X +120P_Y +.04I where P_Y= $50.00 and I = $60,000, marginal revenue will be zero where Q = 6700.

Given the demand function Q_X = 5,000 - 250P_X +120P_Y +.04I where P_Y= $50.00 and I = $60,000, the Q_X equation is Q_X = 13,400 - 250Px.