Exam 4: Elasticity of Demand and Supply

At a price of $4 per unit,Gadgets Inc.is willing to supply 20,000 gadgets,while United Gadgets is willing to supply 10,000 gadgets.If the price were to rise to $8 per unit,their respective quantities supplied would rise to 45,000 and 25,000.If these are the only two firms supplying gadgets,what is the elasticity of supply in the market for gadgets?

(Multiple Choice)

4.8/5

(36)

Question 41

Refer to the graph above and assume that the areas of the boxes are the same.Consider a situation where price decreases from P₂ to P₁.In this price range,demand is relatively:

(Multiple Choice)

4.8/5

(36)

Question 42

Changes in demand have a large effect on the price of gold because the:

(Multiple Choice)

4.9/5

(39)

Question 43

Refer to the above data.Over which price range is the price elasticity of demand inelastic?

(Multiple Choice)

4.8/5

(34)

Question 44

Sony is considering a 10 percent price reduction on its LCD television sets.If the demand for sets in this price range is inelastic:

(Multiple Choice)

4.8/5

(34)

Question 45

Inelastic demand displays:

(Multiple Choice)

4.8/5

(35)

Question 46

Refer to the figure above.Which demand curve above is perfectly inelastic?

(Multiple Choice)

4.8/5

(48)

Question 47

Refer to the graph above.Which statement is correct?

(Multiple Choice)

4.8/5

(40)

Question 48

Refer to the table above.Starting at a $1 price,at what price range does demand become elastic?

(Multiple Choice)

4.7/5

(37)

Question 49

In the price range where demand is elastic,an increase in price will result in a gain in total revenue.

(True/False)

4.8/5

(30)

Question 50

State government wants to increase the taxes on cigarettes to increase tax revenue.This tax would only be effective in raising new tax revenues if the price elasticity of demand is:

(Multiple Choice)

4.8/5

(43)

Question 51

Airlines charge business travelers more than leisure travelers because there is a more:

(Multiple Choice)

4.8/5

(33)

Question 52

The demand for cocaine is believed to be relatively elastic among addicts.

(True/False)

4.9/5

(41)

Question 53

Refer to the above data.Over which price range is the price elasticity of demand unitary?

(Multiple Choice)

4.9/5

(37)

Question 54

Suppose that when the price of good X changes from $5 to $10,the demand for good Y changes from 110 to 100,then the cross-elasticity of demand is:

(Multiple Choice)

4.8/5

(36)

Question 55

Refer to the table above.Which product is an inferior good?

(Multiple Choice)

5.0/5

(35)

Question 56

If a business decreased the price of its product from $10 to $9 when demand was price inelastic,then total revenues would:

(Multiple Choice)

4.8/5

(33)

Question 57

The supply curve for cars will be more elastic the:

(Multiple Choice)

4.9/5

(38)

Question 58

If an increase in the supply of a product results in a decrease in the price,but no change in the actual quantity of the product exchanged,then the:

(Multiple Choice)

4.7/5

(44)

Question 59

Demand can be said to be inelastic when:

(Multiple Choice)

4.7/5

(33)

Question 60

Showing 41 - 60 of 144

Refer to the graph above and assume that the areas of the boxes are the same.Consider a situation where price decreases from P₂ to P₁.In this price range,demand is relatively:

Changes in demand have a large effect on the price of gold because the:

Refer to the above data.Over which price range is the price elasticity of demand inelastic?

Sony is considering a 10 percent price reduction on its LCD television sets.If the demand for sets in this price range is inelastic:

Inelastic demand displays:

Refer to the figure above.Which demand curve above is perfectly inelastic?

Refer to the graph above.Which statement is correct?

Refer to the table above.Starting at a $1 price,at what price range does demand become elastic?

In the price range where demand is elastic,an increase in price will result in a gain in total revenue.

State government wants to increase the taxes on cigarettes to increase tax revenue.This tax would only be effective in raising new tax revenues if the price elasticity of demand is:

Airlines charge business travelers more than leisure travelers because there is a more:

The demand for cocaine is believed to be relatively elastic among addicts.

Refer to the above data.Over which price range is the price elasticity of demand unitary?

Suppose that when the price of good X changes from $5 to $10,the demand for good Y changes from 110 to 100,then the cross-elasticity of demand is:

Refer to the table above.Which product is an inferior good?

If a business decreased the price of its product from $10 to $9 when demand was price inelastic,then total revenues would:

The supply curve for cars will be more elastic the:

If an increase in the supply of a product results in a decrease in the price,but no change in the actual quantity of the product exchanged,then the:

Demand can be said to be inelastic when:

Limits, Alternatives, and Choices

The Market System and the Circular Flow

Demand, Supply, and Market Equilibrium

Market Failures: Public Goods and Externalities

Businesses and Their Costs

Pure Competition

Pure Monopoly

Monopolistic Competition and Oligopoly

Wage Determination

Income Inequality and Poverty

Public Finance: Expenditures and Taxes

International Trade and Exchange Rates

Filters

Exam 4: Elasticity of Demand and Supply

Refer to the graph above and assume that the areas of the boxes are the same.Consider a situation where price decreases from P2 to P1.In this price range,demand is relatively:

Changes in demand have a large effect on the price of gold because the:

Refer to the above data.Over which price range is the price elasticity of demand inelastic?

Sony is considering a 10 percent price reduction on its LCD television sets.If the demand for sets in this price range is inelastic:

Inelastic demand displays:

Refer to the figure above.Which demand curve above is perfectly inelastic?

Refer to the graph above.Which statement is correct?

Refer to the table above.Starting at a $1 price,at what price range does demand become elastic?

In the price range where demand is elastic,an increase in price will result in a gain in total revenue.

State government wants to increase the taxes on cigarettes to increase tax revenue.This tax would only be effective in raising new tax revenues if the price elasticity of demand is:

Airlines charge business travelers more than leisure travelers because there is a more:

The demand for cocaine is believed to be relatively elastic among addicts.

Refer to the above data.Over which price range is the price elasticity of demand unitary?

Suppose that when the price of good X changes from $5 to $10,the demand for good Y changes from 110 to 100,then the cross-elasticity of demand is:

Refer to the table above.Which product is an inferior good?

If a business decreased the price of its product from $10 to $9 when demand was price inelastic,then total revenues would:

The supply curve for cars will be more elastic the:

If an increase in the supply of a product results in a decrease in the price,but no change in the actual quantity of the product exchanged,then the:

Demand can be said to be inelastic when:

Limits, Alternatives, and Choices

The Market System and the Circular Flow

Demand, Supply, and Market Equilibrium

Market Failures: Public Goods and Externalities

Businesses and Their Costs

Pure Competition

Pure Monopoly

Monopolistic Competition and Oligopoly

Wage Determination

Income Inequality and Poverty

Public Finance: Expenditures and Taxes

International Trade and Exchange Rates

Filters

Refer to the graph above and assume that the areas of the boxes are the same.Consider a situation where price decreases from P₂ to P₁.In this price range,demand is relatively: