Exam 5: Elasticity and Its Application

A government program that pays farmers not to plant corn on part of their land can help farmers not only through the subsidy payments to farmers who participate in the program but also by raising the market price of corn.

(True/False)

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Question 101

Consider the following pairs of goods.For which of the two goods would you expect the demand to be more price elastic? Why?

(Essay)

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Question 102

A bakery would be willing to supply 500 bagels per day at a price of $0.50 each.At a price of $0.80,the bakery would be willing to supply 1,100 bagels.Using the midpoint method,the price elasticity of supply for bagels is about

(Multiple Choice)

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Question 103

In January the price of widgets was $1.00,and Wendy's Widgets produced 80 widgets.In February the price of widgets was $1.50,and Wendy's Widgets produced 110 widgets.In March the price of widgets was $2.00,and Wendy's Widgets produced 140 widgets.The price elasticity of supply of Wendy's Widgets was about

(Multiple Choice)

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Question 104

When demand is inelastic,a decrease in price will cause

(Multiple Choice)

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Question 105

If the cross-price elasticity of demand for two goods is negative,then the two goods are substitutes.

(True/False)

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Question 106

If the price elasticity of demand for a good is 4,then a 12 percent decrease in price results in a

(Multiple Choice)

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Question 107

OPEC successfully raised the world price of oil in the 1970s and early 1980s,primarily due to

(Multiple Choice)

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Question 108

Suppose that when the price of ginger ale is $2 per bottle,firms can sell 4 million bottles.When the price of ginger ale is $3 per bottle,firms can sell 2 million bottles.Which of the following statements is true?

(Multiple Choice)

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Question 109

The demand for Rice Krispies is more elastic than the demand for cereal in general.

(True/False)

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Question 110

You have just been hired as a business consultant to determine what pricing policy would be appropriate in order to increase the total revenue of a bakery.The first step you would take would be to

(Multiple Choice)

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Question 111

Which of the following is not a determinant of the price elasticity of demand for a good?

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Question 112

Fiona's Fish Emporium increased its total monthly revenue from $1,500 to $1,800 when it raised the price of tropical fish from $5 to $9.The price elasticity of demand for Fiona's Fish Emporium is

(Multiple Choice)

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Question 113

If two goods are substitutes,their cross-price elasticity will be

(Multiple Choice)

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Question 114

A discovery that increases wheat yields per acre hurts farmers by increasing supply and lowering their total revenues.

(True/False)

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Question 115

Table 5-5 -Refer to Table 5-5.Which of the three supply curves represents the least elastic supply?

(Multiple Choice)

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Question 116

The price elasticity of demand for a good measures the willingness of

(Multiple Choice)

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Question 117

For a good that is a necessity,demand

(Multiple Choice)

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Question 118

Which of the following is likely to have the most price inelastic demand?

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Question 119

Suppose that 50 ice cream cones are demanded at a particular price.If the price of ice cream cones rises from that price by 4 percent,the number of ice cream cones demanded falls to 46.Using the midpoint approach to calculate the price elasticity of demand,it follows that the

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Question 120

Showing 101 - 120 of 510

Exam 5: Elasticity and Its Application

A government program that pays farmers not to plant corn on part of their land can help farmers not only through the subsidy payments to farmers who participate in the program but also by raising the market price of corn.

Consider the following pairs of goods.For which of the two goods would you expect the demand to be more price elastic? Why?

A bakery would be willing to supply 500 bagels per day at a price of $0.50 each.At a price of $0.80,the bakery would be willing to supply 1,100 bagels.Using the midpoint method,the price elasticity of supply for bagels is about

When demand is inelastic,a decrease in price will cause

If the cross-price elasticity of demand for two goods is negative,then the two goods are substitutes.

If the price elasticity of demand for a good is 4,then a 12 percent decrease in price results in a

OPEC successfully raised the world price of oil in the 1970s and early 1980s,primarily due to

Suppose that when the price of ginger ale is $2 per bottle,firms can sell 4 million bottles.When the price of ginger ale is $3 per bottle,firms can sell 2 million bottles.Which of the following statements is true?

The demand for Rice Krispies is more elastic than the demand for cereal in general.

You have just been hired as a business consultant to determine what pricing policy would be appropriate in order to increase the total revenue of a bakery.The first step you would take would be to

Which of the following is not a determinant of the price elasticity of demand for a good?

Fiona's Fish Emporium increased its total monthly revenue from $1,500 to $1,800 when it raised the price of tropical fish from $5 to $9.The price elasticity of demand for Fiona's Fish Emporium is

If two goods are substitutes,their cross-price elasticity will be

A discovery that increases wheat yields per acre hurts farmers by increasing supply and lowering their total revenues.

Table 5-5 -Refer to Table 5-5.Which of the three supply curves represents the least elastic supply?

The price elasticity of demand for a good measures the willingness of

For a good that is a necessity,demand

Which of the following is likely to have the most price inelastic demand?

Suppose that 50 ice cream cones are demanded at a particular price.If the price of ice cream cones rises from that price by 4 percent,the number of ice cream cones demanded falls to 46.Using the midpoint approach to calculate the price elasticity of demand,it follows that the

Ten Principles of Economics.

Thinking Like an Economist.

Interdependence and the Gains from Trade.

The Market Forces of Supply and Demand.

Supply, Demand, And Government Policies.

Consumers, Producers, and the Efficiency of Markets.

Application: The Costs of Taxation.

Application: International Trade.

Externalities.

Public Goods and Common Resources.

The Design of the Tax System.

The Costs of Production.

Firms in Competitive Markets.

Monopoly.

Monopolistic Competition.

Oligopoly.

The Market For the Factors of Production.

Earnings and Discrimination.

Income Inequality and Poverty.

The Theory of Consumer Choice.

Frontiers in Microeconomics.

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