Exam 5: Price Elasticity of Demand and Supply

Exhibit 5-4 Demand curves for silver -Assume that a wealthy buyer, Mr. Hunt, declares that he will purchase any amount of silver at a price of $125 an ounce. In Exhibit 5-4, which graph illustrates the shape of the demand curve for silver?

(Multiple Choice)

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Question 101

If a good has a price elasticity of demand coefficient less than one, then:

(Multiple Choice)

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Question 102

If Herbert, the hair stylist, raises the price of his cuts from $13 to $15 and finds the number of cuts falls from 300 to 260, then the demand for Herbert's cuts in this range is:

(Multiple Choice)

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Question 103

If the percentage change in the quantity demanded of a good is greater than the percentage change in price, price elasticity of demand is:

(Multiple Choice)

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Question 104

Assume 300 billion pounds of Ostrich meat is produced per year when the price is 50 cents per pound, and 500 billion pounds when the price is 60 cents per pound. The supply of Ostrich meat, other factors held constant, is:

(Multiple Choice)

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Question 105

You are part of a local community theater group. It is the goal of the group to increase the amount of revenue earned through ticket sales. Mary says the obvious solution is to increase ticket prices. Is Mary correct?

(Multiple Choice)

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Question 106

An economist estimates that .67 is the price elasticity of demand for disposable diapers. This suggests that disposable diaper producers could:

(Multiple Choice)

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Question 107

What happens to total revenue given a price increase and demand is inelastic? Why?

(Essay)

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Question 108

Demand sensitivity depends on all of the following except:

(Multiple Choice)

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Question 109

If the price elasticity of demand is computed for two products, and product A measures .79, and product B measures 1.6, then:

(Multiple Choice)

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Question 110

If the demand curve is unit elastic, this implies that:

(Multiple Choice)

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Question 111

The price elasticity of demand coefficient for a good will be lower:

(Multiple Choice)

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Question 112

A _______ demand curve has a price elasticity of demand that is perfectly elastic.

(Multiple Choice)

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Question 113

A health club sells 50 memberships when the monthly price is $60 and 70 memberships when the monthly price is $40. The price elasticity of demand for memberships at this health club is (using the average values method):

(Multiple Choice)

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Question 114

The cross elasticity between two goods is 2.5. These goods are:

(Multiple Choice)

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Question 115

Applying supply and demand analysis, other factors held constant, the steeper the supply curve (more inelastic), the larger the burden of a sales tax that is borne by the sellers.

(True/False)

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Question 116

If demand price elasticity measures 2, this implies that consumers would:

(Multiple Choice)

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Question 117

If a government tax has as its purpose the raising of revenue, it would be best to place the tax on a product which:

(Multiple Choice)

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Question 118

The income elasticity of demand for shoes is estimated to be 1.50. We can conclude that shoes:

(Multiple Choice)

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Question 119

Since it is always a negative number, economists use the convention of taking the absolute value of:

(Multiple Choice)

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Question 120

Showing 101 - 120 of 280

Exhibit 5-4 Demand curves for silver -Assume that a wealthy buyer, Mr. Hunt, declares that he will purchase any amount of silver at a price of $125 an ounce. In Exhibit 5-4, which graph illustrates the shape of the demand curve for silver?

If a good has a price elasticity of demand coefficient less than one, then:

If Herbert, the hair stylist, raises the price of his cuts from $13 to $15 and finds the number of cuts falls from 300 to 260, then the demand for Herbert's cuts in this range is:

If the percentage change in the quantity demanded of a good is greater than the percentage change in price, price elasticity of demand is:

Assume 300 billion pounds of Ostrich meat is produced per year when the price is 50 cents per pound, and 500 billion pounds when the price is 60 cents per pound. The supply of Ostrich meat, other factors held constant, is:

You are part of a local community theater group. It is the goal of the group to increase the amount of revenue earned through ticket sales. Mary says the obvious solution is to increase ticket prices. Is Mary correct?

An economist estimates that .67 is the price elasticity of demand for disposable diapers. This suggests that disposable diaper producers could:

What happens to total revenue given a price increase and demand is inelastic? Why?

Demand sensitivity depends on all of the following except:

If the price elasticity of demand is computed for two products, and product A measures .79, and product B measures 1.6, then:

If the demand curve is unit elastic, this implies that:

The price elasticity of demand coefficient for a good will be lower:

A _______ demand curve has a price elasticity of demand that is perfectly elastic.

A health club sells 50 memberships when the monthly price is $60 and 70 memberships when the monthly price is $40. The price elasticity of demand for memberships at this health club is (using the average values method):

The cross elasticity between two goods is 2.5. These goods are:

Applying supply and demand analysis, other factors held constant, the steeper the supply curve (more inelastic), the larger the burden of a sales tax that is borne by the sellers.

If demand price elasticity measures 2, this implies that consumers would:

If a government tax has as its purpose the raising of revenue, it would be best to place the tax on a product which:

The income elasticity of demand for shoes is estimated to be 1.50. We can conclude that shoes:

Since it is always a negative number, economists use the convention of taking the absolute value of:

Introducing the Economic Way of Thinking

Production Possibilities, Opportunity Cost, and Economic Growth

Market Demand and Supply

Markets in Action

Consumer Choice Theory

Production Costs

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Labor Markets

Income Distribution, Poverty, and Discrimination

Antitrust and Regulation

Environmental Economics

International Trade and Finance

Economies in Transition

Growth and the

Filters

Exam 5: Price Elasticity of Demand and Supply

Exhibit 5-4 Demand curves for silver ​ -Assume that a wealthy buyer, Mr. Hunt, declares that he will purchase any amount of silver at a price of $125 an ounce. In Exhibit 5-4, which graph illustrates the shape of the demand curve for silver?

If a good has a price elasticity of demand coefficient less than one, then:

If Herbert, the hair stylist, raises the price of his cuts from $13 to $15 and finds the number of cuts falls from 300 to 260, then the demand for Herbert's cuts in this range is:

If the percentage change in the quantity demanded of a good is greater than the percentage change in price, price elasticity of demand is:

Assume 300 billion pounds of Ostrich meat is produced per year when the price is 50 cents per pound, and 500 billion pounds when the price is 60 cents per pound. The supply of Ostrich meat, other factors held constant, is:

You are part of a local community theater group. It is the goal of the group to increase the amount of revenue earned through ticket sales. Mary says the obvious solution is to increase ticket prices. Is Mary correct?

An economist estimates that .67 is the price elasticity of demand for disposable diapers. This suggests that disposable diaper producers could:

What happens to total revenue given a price increase and demand is inelastic? Why?

Demand sensitivity depends on all of the following except:

If the price elasticity of demand is computed for two products, and product A measures .79, and product B measures 1.6, then:

If the demand curve is unit elastic, this implies that:

The price elasticity of demand coefficient for a good will be lower:

​ A _______ demand curve has a price elasticity of demand that is perfectly elastic.

A health club sells 50 memberships when the monthly price is $60 and 70 memberships when the monthly price is $40. The price elasticity of demand for memberships at this health club is (using the average values method):

The cross elasticity between two goods is 2.5. These goods are:

Applying supply and demand analysis, other factors held constant, the steeper the supply curve (more inelastic), the larger the burden of a sales tax that is borne by the sellers. ​ ​ ​

If demand price elasticity measures 2, this implies that consumers would:

If a government tax has as its purpose the raising of revenue, it would be best to place the tax on a product which:

The income elasticity of demand for shoes is estimated to be 1.50. We can conclude that shoes:

Since it is always a negative number, economists use the convention of taking the absolute value of:

Introducing the Economic Way of Thinking

Production Possibilities, Opportunity Cost, and Economic Growth

Market Demand and Supply

Markets in Action

Consumer Choice Theory

Production Costs

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Labor Markets

Income Distribution, Poverty, and Discrimination

Antitrust and Regulation

Environmental Economics

International Trade and Finance

Economies in Transition

Growth and the

Filters

Exhibit 5-4 Demand curves for silver -Assume that a wealthy buyer, Mr. Hunt, declares that he will purchase any amount of silver at a price of $125 an ounce. In Exhibit 5-4, which graph illustrates the shape of the demand curve for silver?

A _______ demand curve has a price elasticity of demand that is perfectly elastic.

Applying supply and demand analysis, other factors held constant, the steeper the supply curve (more inelastic), the larger the burden of a sales tax that is borne by the sellers.