Question 1

the figure below,which shows a linear demand curve and the associated total revenue curve,to answer the question.   The maximum possible total revenue is $_________.

Accepted Answer

A) 10,500 
B) 11,000 
C) 11,500 
D) 12,000 
E) 12,500 
A) 10,500 
B) 11,000 
C) 11,500 
D) 12,000 
E) 12,500

Question 2

To answer the question,refer to the following table showing a demand schedule: $\begin{array}{llcc}
\underline{  \text {Price  } }&\underline{ \text { Ouantity } } \
 &\underline{\text {demanded  }} \
\$200 &1000\
150&1400\
100 &1800\
\end{array}$  If price falls from $150 to $100,what is the elasticity of demand over this range?

Accepted Answer

A) -0.625 
B) -1.0 
C) -1.17 
D) -2.5 
E) -3.0 
A) -0.625 
B) -1.0 
C) -1.17 
D) -2.5 
E) -3.0

Question 3

Refer to the following figure.When quantity demanded is 1,000,what is marginal revenue?

Accepted Answer

A) $15 
B) $7.50 
C) 0 
D) $10 
E) -$10 
A) $15 
B) $7.50 
C) 0 
D) $10 
E) -$10

Question 4

Refer to the following figure.At a price of $10,the point elasticity of demand for D3 is ________ and marginal revenue is _______.

Accepted Answer

A) -5; positive 
B) -0.5; negative 
C) -0.2; negative 
D) -1; zero 
A) -5; positive 
B) -0.5; negative 
C) -0.2; negative 
D) -1; zero

Question 5

If the price elasticity of demand for a good is -0.8 and quantity demanded decreases by 40%,price must have

Accepted Answer

A) increased by 5%. 
B) increased by 32%. 
C) decreased by 20%. 
D) decreased by 32%. 
E) none of the above 
A) increased by 5%. 
B) increased by 32%. 
C) decreased by 20%. 
D) decreased by 32%. 
E) none of the above

Question 6

Refer to the following figure.At a price of $1,the point elasticity of demand for D2 is ________ and marginal revenue is _______.

Accepted Answer

A) -5; positive 
B) -0.5; negative 
C) -0.2; negative 
D) -1; zero 
A) -5; positive 
B) -0.5; negative 
C) -0.2; negative 
D) -1; zero

Question 7

Refer to the following figure.The point elasticities of demand for D1,D2,and D3 at a price of $5 are ________,________,and _______,respectively.

Accepted Answer

A) -1.4; -0.2; -1.4 
B) -0.71; -5; -0.71 
C) -1.4; -0.2; -5 
D) -12; -6; -12 
E) -0.0833; -0.1667; -0.0833 
A) -1.4; -0.2; -1.4 
B) -0.71; -5; -0.71 
C) -1.4; -0.2; -5 
D) -12; -6; -12 
E) -0.0833; -0.1667; -0.0833

Question 8

If a drought increases the price of corn by 10% and decreases the quantity of corn demanded by 5%,then demand for corn is

Accepted Answer

A) elastic and total revenue to corn farmers will decrease. 
B) inelastic and total revenue to corn farmers will decrease. 
C) elastic and total revenue to corn farmers will increase. 
D) inelastic and total revenue to corn farmers will increase. 
A) elastic and total revenue to corn farmers will decrease. 
B) inelastic and total revenue to corn farmers will decrease. 
C) elastic and total revenue to corn farmers will increase. 
D) inelastic and total revenue to corn farmers will increase.

Question 9

When marginal revenue is positive,

Accepted Answer

A) demand is elastic. 
B) marginal revenue is greater than price. 
C) decreasing price will decrease total revenue. 
D) both b and c 
E) all of the above 
A) demand is elastic. 
B) marginal revenue is greater than price. 
C) decreasing price will decrease total revenue. 
D) both b and c 
E) all of the above

Question 10

Refer to the following figure.At a price of $6,the point elasticity of demand for D1 is ________ and marginal revenue is _______.

Accepted Answer

A) -5; positive 
B) -0.5; negative 
C) -0.2; negative 
D) -1; zero 
A) -5; positive 
B) -0.5; negative 
C) -0.2; negative 
D) -1; zero

Question 11

To answer the question,refer to the following table showing a demand schedule: $\begin{array}{llcc}
\underline{  \text {Price  } }&\underline{ \text { Ouantity } } \
 &\underline{\text {demanded  }} \
\$200 &1000\
150&1400\
100 &1800\
\end{array}$  If price falls from $200 to $150,

Accepted Answer

A) arrows representing the price and quantity effects both point down. 
B) an arrow representing the price effect points down and is longer than an arrow for the quantity effect. 
C) an arrow representing the price effect points down and is shorter than an arrow for the quantity effect. 
D) arrows representing the price and quantity effects both point up. 
E) total revenue moves in the same direction as the arrow representing the price effect. 
A) arrows representing the price and quantity effects both point down. 
B) an arrow representing the price effect points down and is longer than an arrow for the quantity effect. 
C) an arrow representing the price effect points down and is shorter than an arrow for the quantity effect. 
D) arrows representing the price and quantity effects both point up. 
E) total revenue moves in the same direction as the arrow representing the price effect.

Question 12

Refer to the following graph to answer the question:   Over the price range $90 to $110,marginal revenue is ________ and demand is ________.

Accepted Answer

A) greater than one; inelastic 
B) positive; elastic 
C) negative; inelastic 
D) less than one; elastic 
E) none of the above 
A) greater than one; inelastic 
B) positive; elastic 
C) negative; inelastic 
D) less than one; elastic 
E) none of the above

Question 13

According to the following figure,marginal revenue is zero at Q = ________.

Accepted Answer

A) 1,000 units 
B) 2,000 units 
C) 3,000 units 
D) 4,000 units 
E) none of the above 
A) 1,000 units 
B) 2,000 units 
C) 3,000 units 
D) 4,000 units 
E) none of the above

Question 14

If E1 is the demand elasticity for a product after a price change has been in effect one day,E2 is the demand elasticity for that product after one week,and E3 is demand elasticity for that product after one month,

Accepted Answer

A) |E1| > |E2| > |E3| 
B) |E2| > |E3| > |E1| 
C) |E3| > |E1| > |E2| 
D) |E3| > |E2| > |E1| 
A) |E1| > |E2| > |E3| 
B) |E2| > |E3| > |E1| 
C) |E3| > |E1| > |E2| 
D) |E3| > |E2| > |E1|

Question 15

E1 is demand elasticity for Minute Maid orange juice,E2 is demand elasticity for all orange juice,and E3 is demand elasticity for all fruit drinks.Then

Accepted Answer

A) |E1| > |E2| > |E3| 
B) |E2| > |E3| > |E1| 
C) |E3| > |E1| > |E2| 
D) |E3| > |E2| > |E1| 
A) |E1| > |E2| > |E3| 
B) |E2| > |E3| > |E1| 
C) |E3| > |E1| > |E2| 
D) |E3| > |E2| > |E1|

Question 16

Refer to the following graph to answer the question:   Suppose price rises from $90 to $110.Using representative arrows,the price effect is a relatively ________ (short,long)arrow pointing _______ (upward,downward).

Accepted Answer

A) short; upward 
B) short; downward 
C) long; upward 
D) long; downward 
A) short; upward 
B) short; downward 
C) long; upward 
D) long; downward

Question 17

Refer to the following figure.When price is $10 and quantity demanded is 2,000,what is the point elasticity of demand?

Accepted Answer

A) -3 
B) -1/3 
C) -1 
D) -5 
E) -2/3 
A) -3 
B) -1/3 
C) -1 
D) -5 
E) -2/3

Question 18

If the price elasticity of earbud headphones is -0.3 and price increases 20%,what happens to the quantity of earbud headphones demanded?

Accepted Answer

A) quantity decreases by 26% 
B) quantity decreases by 6% 
C) quantity increases by 15% 
D) quantity increases by 21% 
A) quantity decreases by 26% 
B) quantity decreases by 6% 
C) quantity increases by 15% 
D) quantity increases by 21%

Question 19

Refer to the following figure.At what prices are demand curves D1,D2,and D3 unitary elastic?

Accepted Answer

A) $5; $5; $5; respectively 
B) $17; $6; $5; respectively 
C) $6; $3; $6; respectively 
D) $1; $1; $1; respectively 
A) $5; $5; $5; respectively 
B) $17; $6; $5; respectively 
C) $6; $3; $6; respectively 
D) $1; $1; $1; respectively

Question 20

In the figure above,if price DECREASES from $60 to $40,an arrow representing the QUANTITY effect

Accepted Answer

A) will point downward. 
B) will be shorter than (and in opposite direction of)the arrow representing the price effect. 
C) will be shorter than (and in same direction of)the arrow representing the price effect. 
D) will point in the direction in which total revenue will move. 
E) both a and d 
A) will point downward. 
B) will be shorter than (and in opposite direction of)the arrow representing the price effect. 
C) will be shorter than (and in same direction of)the arrow representing the price effect. 
D) will point in the direction in which total revenue will move. 
E) both a and d

the figure below,which shows a linear demand curve and the associated total revenue curve,to answer the question. The maximum possible total revenue is $_________.

To answer the question,refer to the following table showing a demand schedule: \2 00 1000 150 1400 100 1800 If price falls from $150 to $100,what is the elasticity of demand over this range?

Refer to the following figure.When quantity demanded is 1,000,what is marginal revenue?

Refer to the following figure.At a price of $10,the point elasticity of demand for D₃ is __ and marginal revenue is _.

If the price elasticity of demand for a good is -0.8 and quantity demanded decreases by 40%,price must have

Refer to the following figure.At a price of $1,the point elasticity of demand for D₂ is __ and marginal revenue is _.

Refer to the following figure.The point elasticities of demand for D₁,D₂,and D₃ at a price of $5 are __,,and _,respectively.

If a drought increases the price of corn by 10% and decreases the quantity of corn demanded by 5%,then demand for corn is

When marginal revenue is positive,

Refer to the following figure.At a price of $6,the point elasticity of demand for D₁ is __ and marginal revenue is _.

To answer the question,refer to the following table showing a demand schedule: \2 00 1000 150 1400 100 1800 If price falls from $200 to $150,

Refer to the following graph to answer the question: Over the price range $90 to $110,marginal revenue is and demand is .

According to the following figure,marginal revenue is zero at Q = ________.

If E₁ is the demand elasticity for a product after a price change has been in effect one day,E₂ is the demand elasticity for that product after one week,and E₃ is demand elasticity for that product after one month,

E₁ is demand elasticity for Minute Maid orange juice,E₂ is demand elasticity for all orange juice,and E₃ is demand elasticity for all fruit drinks.Then

Refer to the following graph to answer the question: Suppose price rises from $90 to $110.Using representative arrows,the price effect is a relatively __ (short,long)arrow pointing _ (upward,downward).

Refer to the following figure.When price is $10 and quantity demanded is 2,000,what is the point elasticity of demand?

If the price elasticity of earbud headphones is -0.3 and price increases 20%,what happens to the quantity of earbud headphones demanded?

Refer to the following figure.At what prices are demand curves D₁,D₂,and D₃ unitary elastic?

In the figure above,if price DECREASES from $60 to $40,an arrow representing the QUANTITY effect

Managers,profits,and Markets

Demand,supply,and Market Equilibrium

Marginal Analysis for Optimal Decisions

Basic Estimation Techniques

Theory of Consumer Behavior

Demand Estimation and Forecasting

Production and Cost in the Short Run

Production and Cost in the Long Run

Production and Cost Estimation

Managerial Decisions in Competitive Markets

Managerial Decisions for Firms With Market Power

Strategic Decision Making in Oligopoly Markets

Advanced Pricing Techniques

Decisions Under Risk and Uncertainty

Government Regulation of Business

Filters

Exam 6: Elasticity and Demand

the figure below,which shows a linear demand curve and the associated total revenue curve,to answer the question. The maximum possible total revenue is $_________.

To answer the question,refer to the following table showing a demand schedule: \2 00 1000 150 1400 100 1800 If price falls from $150 to $100,what is the elasticity of demand over this range?

Refer to the following figure.When quantity demanded is 1,000,what is marginal revenue?

Refer to the following figure.At a price of $10,the point elasticity of demand for D3 is ________ and marginal revenue is _______.

If the price elasticity of demand for a good is -0.8 and quantity demanded decreases by 40%,price must have

Refer to the following figure.At a price of $1,the point elasticity of demand for D2 is ________ and marginal revenue is _______.

Refer to the following figure.The point elasticities of demand for D1,D2,and D3 at a price of $5 are ________,________,and _______,respectively.

If a drought increases the price of corn by 10% and decreases the quantity of corn demanded by 5%,then demand for corn is

When marginal revenue is positive,

Refer to the following figure.At a price of $6,the point elasticity of demand for D1 is ________ and marginal revenue is _______.

To answer the question,refer to the following table showing a demand schedule: \2 00 1000 150 1400 100 1800 If price falls from $200 to $150,

Refer to the following graph to answer the question: Over the price range $90 to $110,marginal revenue is ________ and demand is ________.

According to the following figure,marginal revenue is zero at Q = ________.

If E1 is the demand elasticity for a product after a price change has been in effect one day,E2 is the demand elasticity for that product after one week,and E3 is demand elasticity for that product after one month,

E1 is demand elasticity for Minute Maid orange juice,E2 is demand elasticity for all orange juice,and E3 is demand elasticity for all fruit drinks.Then

Refer to the following graph to answer the question: Suppose price rises from $90 to $110.Using representative arrows,the price effect is a relatively ________ (short,long)arrow pointing _______ (upward,downward).

Refer to the following figure.When price is $10 and quantity demanded is 2,000,what is the point elasticity of demand?

If the price elasticity of earbud headphones is -0.3 and price increases 20%,what happens to the quantity of earbud headphones demanded?

Refer to the following figure.At what prices are demand curves D1,D2,and D3 unitary elastic?

In the figure above,if price DECREASES from $60 to $40,an arrow representing the QUANTITY effect

Managers,profits,and Markets

Demand,supply,and Market Equilibrium

Marginal Analysis for Optimal Decisions

Basic Estimation Techniques

Theory of Consumer Behavior

Demand Estimation and Forecasting

Production and Cost in the Short Run

Production and Cost in the Long Run

Production and Cost Estimation

Managerial Decisions in Competitive Markets

Managerial Decisions for Firms With Market Power

Strategic Decision Making in Oligopoly Markets

Advanced Pricing Techniques

Decisions Under Risk and Uncertainty

Government Regulation of Business

Filters

Refer to the following figure.At a price of $10,the point elasticity of demand for D₃ is __ and marginal revenue is _.

Refer to the following figure.At a price of $1,the point elasticity of demand for D₂ is __ and marginal revenue is _.

Refer to the following figure.The point elasticities of demand for D₁,D₂,and D₃ at a price of $5 are __,,and _,respectively.

Refer to the following figure.At a price of $6,the point elasticity of demand for D₁ is __ and marginal revenue is _.

Refer to the following graph to answer the question: Over the price range $90 to $110,marginal revenue is and demand is .

If E₁ is the demand elasticity for a product after a price change has been in effect one day,E₂ is the demand elasticity for that product after one week,and E₃ is demand elasticity for that product after one month,

E₁ is demand elasticity for Minute Maid orange juice,E₂ is demand elasticity for all orange juice,and E₃ is demand elasticity for all fruit drinks.Then

Refer to the following graph to answer the question: Suppose price rises from $90 to $110.Using representative arrows,the price effect is a relatively __ (short,long)arrow pointing _ (upward,downward).

Refer to the following figure.At what prices are demand curves D₁,D₂,and D₃ unitary elastic?