Exam 4: Elasticity of Demand and Supply

The income elasticity of demand for a food is unity.A consumer's monthly income is $2,000,of which 20 percent is spent on food.If income doubles,the amount spent on food will be:

(Multiple Choice)

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Question 121

For which product is the income elasticity of demand most likely to be negative?

(Multiple Choice)

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Question 122

For which product is the income elasticity of demand most likely to be positive?

(Multiple Choice)

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Question 123

Refer to the graphs above.For which graph is the supply perfectly inelastic?

(Multiple Choice)

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Question 124

A positive cross-elasticity of demand for two products indicates that they are substitutes.

(True/False)

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Question 125

Refer to the figure above.The elasticity of supply for a product will be 2 when:

(Multiple Choice)

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Question 126

Refer to the figure above.Which demand curve above is relatively more elastic between P₁ and P₂?

(Multiple Choice)

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Question 127

The income elasticity of demand for jewelry is 2.Other things equal,a 10 percent increase in consumer income will:

(Multiple Choice)

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Question 128

If a union argues that a price cut will boost revenues of the firm and management argues that the opposite is true,then the price elasticity of demand is:

(Multiple Choice)

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Question 129

The price elasticity of demand for a textbook is estimated to be 1 no matter what the price or quantity demanded.In this case:

(Multiple Choice)

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Question 130

Economists distinguish between the short run and the long run by noting that:

(Multiple Choice)

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Question 131

If the price elasticity of demand for a product is equal to 0.5,then a 10 percent decrease in price will:

(Multiple Choice)

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Question 132

Refer to the above graph.When the quantity of product X increases from 14,000 to 16,000,the price elasticity of demand for product X is:

(Multiple Choice)

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Question 133

Generally,which pairs of variables could be positively or negatively related depending on the characteristic of the product?

(Multiple Choice)

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Question 134

Refer to the table above.What is the price with the maximum total revenue?

(Multiple Choice)

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Question 135

Which is not characteristic of a product with relatively inelastic demand?

(Multiple Choice)

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Question 136

A good with a price elasticity of demand equal to .75 is described as price-inelastic.

(True/False)

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Question 137

An inferior good is best defined as a product for which the:

(Multiple Choice)

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Question 138

When universities announce a large tuition increase and follow it with an announcement that more financial aid will be available,they are assuming that students who pay full tuition:

(Multiple Choice)

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Question 139

A consumer's weekly income is $300 and the consumer buys 5 bars of chocolate per week.When income increases to $330,the consumer buys 6 bars per week.The income elasticity of demand for chocolate by this consumer is about:

(Multiple Choice)

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Question 140

Showing 121 - 140 of 144

The income elasticity of demand for a food is unity.A consumer's monthly income is $2,000,of which 20 percent is spent on food.If income doubles,the amount spent on food will be:

For which product is the income elasticity of demand most likely to be negative?

For which product is the income elasticity of demand most likely to be positive?

Refer to the graphs above.For which graph is the supply perfectly inelastic?

A positive cross-elasticity of demand for two products indicates that they are substitutes.

Refer to the figure above.The elasticity of supply for a product will be 2 when:

Refer to the figure above.Which demand curve above is relatively more elastic between P₁ and P₂?

The income elasticity of demand for jewelry is 2.Other things equal,a 10 percent increase in consumer income will:

If a union argues that a price cut will boost revenues of the firm and management argues that the opposite is true,then the price elasticity of demand is:

The price elasticity of demand for a textbook is estimated to be 1 no matter what the price or quantity demanded.In this case:

Economists distinguish between the short run and the long run by noting that:

If the price elasticity of demand for a product is equal to 0.5,then a 10 percent decrease in price will:

Refer to the above graph.When the quantity of product X increases from 14,000 to 16,000,the price elasticity of demand for product X is:

Generally,which pairs of variables could be positively or negatively related depending on the characteristic of the product?

Refer to the table above.What is the price with the maximum total revenue?

Which is not characteristic of a product with relatively inelastic demand?

A good with a price elasticity of demand equal to .75 is described as price-inelastic.

An inferior good is best defined as a product for which the:

When universities announce a large tuition increase and follow it with an announcement that more financial aid will be available,they are assuming that students who pay full tuition:

A consumer's weekly income is $300 and the consumer buys 5 bars of chocolate per week.When income increases to $330,the consumer buys 6 bars per week.The income elasticity of demand for chocolate by this consumer is about:

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

The income elasticity of demand for a food is unity.A consumer's monthly income is $2,000,of which 20 percent is spent on food.If income doubles,the amount spent on food will be:

For which product is the income elasticity of demand most likely to be negative?

For which product is the income elasticity of demand most likely to be positive?

Refer to the graphs above.For which graph is the supply perfectly inelastic?

A positive cross-elasticity of demand for two products indicates that they are substitutes.

Refer to the figure above.The elasticity of supply for a product will be 2 when:

Refer to the figure above.Which demand curve above is relatively more elastic between P1 and P2?

The income elasticity of demand for jewelry is 2.Other things equal,a 10 percent increase in consumer income will:

If a union argues that a price cut will boost revenues of the firm and management argues that the opposite is true,then the price elasticity of demand is:

The price elasticity of demand for a textbook is estimated to be 1 no matter what the price or quantity demanded.In this case:

Economists distinguish between the short run and the long run by noting that:

If the price elasticity of demand for a product is equal to 0.5,then a 10 percent decrease in price will:

Refer to the above graph.When the quantity of product X increases from 14,000 to 16,000,the price elasticity of demand for product X is:

Generally,which pairs of variables could be positively or negatively related depending on the characteristic of the product?

Refer to the table above.What is the price with the maximum total revenue?

Which is not characteristic of a product with relatively inelastic demand?

A good with a price elasticity of demand equal to .75 is described as price-inelastic.

An inferior good is best defined as a product for which the:

When universities announce a large tuition increase and follow it with an announcement that more financial aid will be available,they are assuming that students who pay full tuition:

A consumer's weekly income is $300 and the consumer buys 5 bars of chocolate per week.When income increases to $330,the consumer buys 6 bars per week.The income elasticity of demand for chocolate by this consumer is about:

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 figure above.Which demand curve above is relatively more elastic between P₁ and P₂?