Exam 6: Elasticity

Suppose the price of Vanilla Coke increases by 9% and quantity demanded falls by 13% overall but only by 4% for loyal Coca-Cola customers. This means that for the general public there are ___ for Vanilla Coke, but for loyal Coca-Cola customers, Vanilla Coke is more of a _ item. This means that Coca-Cola will enjoy an increase in total revenue only from ___.

(Multiple Choice)

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Question 21

Suppose the cross-price elasticity between two goods is zero. What does this tell you about these two goods?

(Essay)

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Question 22

All of the following are characteristics of a good with elastic demand EXCEPT:

(Multiple Choice)

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Question 23

The long-run price elasticity of supply of crude oil is _____ the short-run price elasticity of supply of crude oil.

(Multiple Choice)

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Question 24

The consumption of a(n) _____ good increases when income decreases.

(Multiple Choice)

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Question 25

Use the following to answer questions: Figure: The Demand for e-Books -(Figure: The Demand for e-Books) Look at the figure The Demand for e-Books. What is the price elasticity of demand (by the midpoint method) when the price decreases from $6 to $4?

(Multiple Choice)

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Question 26

When the price of chocolate-covered peanuts increases from $1.55 to $2.00, the quantity demanded decreases from 220 to 160. In this price range, the demand for chocolate-covered peanuts is _, and total revenue will _ when the price increases.

(Multiple Choice)

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Question 27

If a university decreases the price of tickets to football games to collect more revenue, it is assuming that the demand for tickets is:

(Multiple Choice)

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Question 28

The pair of items that is most likely to have a negative cross-price elasticity of demand is:

(Multiple Choice)

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Question 29

Suppose you manage a convenience mart and are in charge of ordering products, but the home office sets the prices. In your area, the income elasticity of demand for peanut butter is -0.5. Because of local factory closings, you expect local incomes to decrease by 20% on average in the next month. As a result, you should stock _____ peanut butter.

(Multiple Choice)

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Question 30

The price elasticity of a good will tend to be larger:

(Multiple Choice)

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Question 31

Consider the market for strawberries. Which of the following statements most likely applies to the strawberry market?

(Multiple Choice)

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Question 32

For a normal demand curve, the price elasticity of demand will be:

(Multiple Choice)

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Question 33

The income elasticity of demand of an inferior good:

(Multiple Choice)

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Question 34

Suppose the cross-price elasticity of demand for pork with respect to the price of chicken is equal to +0.4. What does this tell you about the relation between pork and chicken? What will happen to consumption of pork if the price of chicken falls by 20%?

(Essay)

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Question 35

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 36

If a good is very inexpensive but is a necessity, you predict that demand for the good:

(Multiple Choice)

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Question 37

If a good has a price-inelastic demand, then which of the following is NOT likely to be characteristic of this good?

(Multiple Choice)

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Question 38

There is one gas station in a small rural town. The owner of the station claims that he will sell the same quantity of gas no matter how high or low the price. If he is correct in this assertion, the demand curve for gas at his station must be _, with a price elasticity of _.

(Multiple Choice)

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Question 39

If you know the cross-price elasticity between two goods is positive, then you know the two goods are:

(Multiple Choice)

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Question 40

Showing 21 - 40 of 300

Suppose the cross-price elasticity between two goods is zero. What does this tell you about these two goods?

All of the following are characteristics of a good with elastic demand EXCEPT:

The long-run price elasticity of supply of crude oil is _____ the short-run price elasticity of supply of crude oil.

The consumption of a(n) _____ good increases when income decreases.

Use the following to answer questions: Figure: The Demand for e-Books -(Figure: The Demand for e-Books) Look at the figure The Demand for e-Books. What is the price elasticity of demand (by the midpoint method) when the price decreases from $6 to $4?

When the price of chocolate-covered peanuts increases from $1.55 to $2.00, the quantity demanded decreases from 220 to 160. In this price range, the demand for chocolate-covered peanuts is _, and total revenue will _ when the price increases.

If a university decreases the price of tickets to football games to collect more revenue, it is assuming that the demand for tickets is:

The pair of items that is most likely to have a negative cross-price elasticity of demand is:

The price elasticity of a good will tend to be larger:

Consider the market for strawberries. Which of the following statements most likely applies to the strawberry market?

For a normal demand curve, the price elasticity of demand will be:

The income elasticity of demand of an inferior good:

Suppose the cross-price elasticity of demand for pork with respect to the price of chicken is equal to +0.4. What does this tell you about the relation between pork and chicken? What will happen to consumption of pork if the price of chicken falls by 20%?

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 a good is very inexpensive but is a necessity, you predict that demand for the good:

If a good has a price-inelastic demand, then which of the following is NOT likely to be characteristic of this good?

There is one gas station in a small rural town. The owner of the station claims that he will sell the same quantity of gas no matter how high or low the price. If he is correct in this assertion, the demand curve for gas at his station must be _, with a price elasticity of _.

If you know the cross-price elasticity between two goods is positive, then you know the two goods are:

First Principles

Economic Models: Trade-Offs and Trade 25

Supply and Demand

Consumer and Producer Surplus

Price Controls and Quotas: Meddling With Markets

Taxes

International Trade

Decision Making by Individuals 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 Common Resources

The Economics of the Welfare

Factor Markets and the Distribution of Income

Uncertainty, Risk, and Private Information

Filters

Exam 6: Elasticity

Suppose the cross-price elasticity between two goods is zero. What does this tell you about these two goods?

All of the following are characteristics of a good with elastic demand EXCEPT:

The long-run price elasticity of supply of crude oil is _____ the short-run price elasticity of supply of crude oil.

The consumption of a(n) _____ good increases when income decreases.

Use the following to answer questions: Figure: The Demand for e-Books -(Figure: The Demand for e-Books) Look at the figure The Demand for e-Books. What is the price elasticity of demand (by the midpoint method) when the price decreases from $6 to $4?

When the price of chocolate-covered peanuts increases from $1.55 to $2.00, the quantity demanded decreases from 220 to 160. In this price range, the demand for chocolate-covered peanuts is _____, and total revenue will _____ when the price increases.

If a university decreases the price of tickets to football games to collect more revenue, it is assuming that the demand for tickets is:

The pair of items that is most likely to have a negative cross-price elasticity of demand is:

The price elasticity of a good will tend to be larger:

Consider the market for strawberries. Which of the following statements most likely applies to the strawberry market?

For a normal demand curve, the price elasticity of demand will be:

The income elasticity of demand of an inferior good:

Suppose the cross-price elasticity of demand for pork with respect to the price of chicken is equal to +0.4. What does this tell you about the relation between pork and chicken? What will happen to consumption of pork if the price of chicken falls by 20%?

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 a good is very inexpensive but is a necessity, you predict that demand for the good:

If a good has a price-inelastic demand, then which of the following is NOT likely to be characteristic of this good?

There is one gas station in a small rural town. The owner of the station claims that he will sell the same quantity of gas no matter how high or low the price. If he is correct in this assertion, the demand curve for gas at his station must be _____, with a price elasticity of _____.

If you know the cross-price elasticity between two goods is positive, then you know the two goods are:

First Principles

Economic Models: Trade-Offs and Trade 25

Supply and Demand

Consumer and Producer Surplus

Price Controls and Quotas: Meddling With Markets

Taxes

International Trade

Decision Making by Individuals 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 Common Resources

The Economics of the Welfare

Factor Markets and the Distribution of Income

Uncertainty, Risk, and Private Information

Filters

When the price of chocolate-covered peanuts increases from $1.55 to $2.00, the quantity demanded decreases from 220 to 160. In this price range, the demand for chocolate-covered peanuts is _, and total revenue will _ when the price increases.

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.

There is one gas station in a small rural town. The owner of the station claims that he will sell the same quantity of gas no matter how high or low the price. If he is correct in this assertion, the demand curve for gas at his station must be _, with a price elasticity of _.