Question 1

If the administration raises tuition on our campus in order to increaserevenue, it will

Accepted Answer

A) not be successful if the demand curve slopes downward 
B) be successful if demand is elastic 
C) be successful if demand is inelastic 
D) be successful if supply is elastic 
E) be successful if supply is inelastic 
A) not be successful if the demand curve slopes downward 
B) be successful if demand is elastic 
C) be successful if demand is inelastic 
D) be successful if supply is elastic 
E) be successful if supply is inelastic

Question 2

)   Between points b and c in Exhibit 5­7, price decreases by $1, quantitydemanded increases by 10,

Accepted Answer

A) total revenue decreases by $1, and demand is elastic 
B) total revenue decreases by $1, and demand is inelastic 
C) total revenue increases by $40, and demand is elastic 
D) total revenue increases by $40, and demand is inelastic 
E) and total revenue increases by $80 
A) total revenue decreases by $1, and demand is elastic 
B) total revenue decreases by $1, and demand is inelastic 
C) total revenue increases by $40, and demand is elastic 
D) total revenue increases by $40, and demand is inelastic 
E) and total revenue increases by $80

Question 3

The midpoint price between $20 and $40 is

Accepted Answer

A) $10 
B) $20 
C) $30 
D) $15 
E) $200 
A) $10 
B) $20 
C) $30 
D) $15 
E) $200

Question 4

)   Which of the following is not true in the range of the total revenue curvelabeled A in Exhibit 5­8?

Accepted Answer

A) Demand is inelastic. 
B) Total revenue is increasing. 
C) Total revenue is positive. 
D) Demand is elastic. 
E) Demand elasticity decreases as total revenue increases. 
A) Demand is inelastic. 
B) Total revenue is increasing. 
C) Total revenue is positive. 
D) Demand is elastic. 
E) Demand elasticity decreases as total revenue increases.

Question 5

We can tell that demand is elastic as price falls between point a and point bin Exhibit 5­6 because

Accepted Answer

A) quantity demanded is increasing 
B) total revenue is increasing 
C) total revenue is decreasing 
D) total revenue is unchanged 
E) the demand curve slopes downward 
A) quantity demanded is increasing 
B) total revenue is increasing 
C) total revenue is decreasing 
D) total revenue is unchanged 
E) the demand curve slopes downward

Question 6

"More elastic" means

Accepted Answer

A) unchanging 
B) less desirable 
C) more desirable 
D) less responsive 
E) more responsive 
A) unchanging 
B) less desirable 
C) more desirable 
D) less responsive 
E) more responsive

If the administration raises tuition on our campus in order to increaserevenue, it will

) Between points b and c in Exhibit 57, price decreases by $1, quantitydemanded increases by 10,

The midpoint price between $20 and $40 is

) Which of the following is not true in the range of the total revenue curvelabeled A in Exhibit 58?

We can tell that demand is elastic as price falls between point a and point bin Exhibit 56 because

"More elastic" means

The Art and Science of Economic Analysis

Economic Tools and Economics Systems

Economic Decision Makers

Demand Supply and Markets

Consumer Choice and Demand

Production and Cost in the Firm

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Resource Markets

Labor Markets and Labor Unions

Capital Interest Entrepreneurship and Corporate Finance

Transaction Costs Imperfect Information and Behavioral Economics

Economic Regulation and Antitrust Policy

Public Goods and Public Choice

Externalities and the Environment

Income Distribution and Poverty

International Trade

International Finance

Economic Development

Filters

Exam 5: Elasticity of Demand and Supply

If the administration raises tuition on our campus in order to increaserevenue, it will

) Between points b and c in Exhibit 5­7, price decreases by $1, quantitydemanded increases by 10,

The midpoint price between $20 and $40 is

) Which of the following is not true in the range of the total revenue curvelabeled A in Exhibit 5­8?

We can tell that demand is elastic as price falls between point a and point bin Exhibit 5­6 because

"More elastic" means

The Art and Science of Economic Analysis

Economic Tools and Economics Systems

Economic Decision Makers

Demand Supply and Markets

Consumer Choice and Demand

Production and Cost in the Firm

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Resource Markets

Labor Markets and Labor Unions

Capital Interest Entrepreneurship and Corporate Finance

Transaction Costs Imperfect Information and Behavioral Economics

Economic Regulation and Antitrust Policy

Public Goods and Public Choice

Externalities and the Environment

Income Distribution and Poverty

International Trade

International Finance

Economic Development

Filters

) Between points b and c in Exhibit 57, price decreases by $1, quantitydemanded increases by 10,

) Which of the following is not true in the range of the total revenue curvelabeled A in Exhibit 58?

We can tell that demand is elastic as price falls between point a and point bin Exhibit 56 because