Exam 6: Elasticity

When Dave raises the price of smart watches by 10 percent, the quantity demanded decreases by 30 percent. The demand for smart watches is _, and Dave's total revenue _ as a result of the price change.

(Multiple Choice)

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Question 41

A price _____ leads to an increase in quantity demanded, which is why price elasticity of demand is always:

(Multiple Choice)

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Question 42

_____ is the way that the burden of a tax is divided among affected parties.

(Multiple Choice)

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Question 43

If a tax is placed on the seller of a good that has few close substitutes but it is cheap to produce additional units of that good, how does the incidence of that tax fall? Explain.

(Essay)

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Question 44

The sign of a cross-price elasticity indicates that two goods are _____, but the sign of the income elasticity of demand:

(Multiple Choice)

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Question 45

The price elasticity of supply depends on:

(Multiple Choice)

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Question 46

Luxuries are goods with income elasticities that are _____, and necessities are goods with income elasticities that are:

(Multiple Choice)

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Question 47

Perfectly elastic demand curves are:

(Multiple Choice)

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Question 48

An increase in the price of one good leads to a decrease in the quantity demanded of the other good. The sign of this cross-price elasticity is _____, and the two goods are:

(Multiple Choice)

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Question 49

Use the figure A Tax on the Demand for a Good II. A $6 excise tax has been placed on this market. How much of this $6 tax does the seller pay? Figure: A Tax on the Demand for a Good II

(Multiple Choice)

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Question 50

The government of Maxistan places a tax on plastic drinking straws. This kind of a tax is called _____ tax.

(Multiple Choice)

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Question 51

Does a good that has a perfectly inelastic price elasticity of demand have a lot of substitutes? Explain.

(Essay)

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Question 52

Your friend has a food truck and wants to increase the total revenue that he earns. He thinks that he should raise the price of his good. What advice should you give him? Explain.

(Essay)

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Question 53

Use the table The Price Elasticity of Demand for Paola's Equipment. Paola sells equipment for makerspaces, and the price elasticity of demand for the goods that she sells is given in the table below. If Paola wants to increase total revenue, for which good should she increase the price, and for which goods should she decrease the price?

(Multiple Choice)

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Question 54

A 1 percent increase in the price of good W results in a 3 percent increase in the quantity demanded of good T. What is the cross-price elasticity of demand, and what kinds of goods are they?

(Multiple Choice)

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Question 55

Use the table The Price Elasticity of Demand for Paola's Equipment. Paola sells equipment for makerspaces, and the price elasticity of demand for the goods that she sells is given in the table below. Which good will have the largest change in quantity demanded if she lowers the price of all of her goods by 1 percent?

(Multiple Choice)

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Question 56

In which of the following situations would demand NOT be elastic?

(Multiple Choice)

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Question 57

_____ demand is when the price elasticity of demand is less than 1.

(Multiple Choice)

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Question 58

When the price of flowers decreases by 20 percent, Anarosa buys 10 percent more flowers. Anarosa's price elasticity of demand is equal to _____, and her demand is:

(Multiple Choice)

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Question 59

The total amount of money that a firm receives from selling a good is its:

(Multiple Choice)

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Question 60

Showing 41 - 60 of 126

When Dave raises the price of smart watches by 10 percent, the quantity demanded decreases by 30 percent. The demand for smart watches is _, and Dave's total revenue _ as a result of the price change.

A price _____ leads to an increase in quantity demanded, which is why price elasticity of demand is always:

_____ is the way that the burden of a tax is divided among affected parties.

If a tax is placed on the seller of a good that has few close substitutes but it is cheap to produce additional units of that good, how does the incidence of that tax fall? Explain.

The sign of a cross-price elasticity indicates that two goods are _____, but the sign of the income elasticity of demand:

The price elasticity of supply depends on:

Luxuries are goods with income elasticities that are _____, and necessities are goods with income elasticities that are:

Perfectly elastic demand curves are:

An increase in the price of one good leads to a decrease in the quantity demanded of the other good. The sign of this cross-price elasticity is _____, and the two goods are:

Use the figure A Tax on the Demand for a Good II. A $6 excise tax has been placed on this market. How much of this $6 tax does the seller pay? Figure: A Tax on the Demand for a Good II

The government of Maxistan places a tax on plastic drinking straws. This kind of a tax is called _____ tax.

Does a good that has a perfectly inelastic price elasticity of demand have a lot of substitutes? Explain.

Your friend has a food truck and wants to increase the total revenue that he earns. He thinks that he should raise the price of his good. What advice should you give him? Explain.

A 1 percent increase in the price of good W results in a 3 percent increase in the quantity demanded of good T. What is the cross-price elasticity of demand, and what kinds of goods are they?

In which of the following situations would demand NOT be elastic?

_____ demand is when the price elasticity of demand is less than 1.

When the price of flowers decreases by 20 percent, Anarosa buys 10 percent more flowers. Anarosa's price elasticity of demand is equal to _____, and her demand is:

The total amount of money that a firm receives from selling a good is its:

Foundations of Economics

Extension: Understanding Graphs

Markets and Economies

Demand

Supply

Market Equilibrium

Consumer Behavior

Production Costs

Perfect Competition

Market Power

Factor Markets

Market Failure and Government Failure

Measuring an Economys Performance

Aggregate Demand and Aggregate Supply

Fiscal Policy

Money and Banking

Monetary Policy

Economic Growth and Development

International Trade and Finance

Filters

Exam 6: Elasticity

When Dave raises the price of smart watches by 10 percent, the quantity demanded decreases by 30 percent. The demand for smart watches is _____, and Dave's total revenue _____ as a result of the price change.

A price _____ leads to an increase in quantity demanded, which is why price elasticity of demand is always:

_____ is the way that the burden of a tax is divided among affected parties.

If a tax is placed on the seller of a good that has few close substitutes but it is cheap to produce additional units of that good, how does the incidence of that tax fall? Explain.

The sign of a cross-price elasticity indicates that two goods are _____, but the sign of the income elasticity of demand:

The price elasticity of supply depends on:

Luxuries are goods with income elasticities that are _____, and necessities are goods with income elasticities that are:

Perfectly elastic demand curves are:

An increase in the price of one good leads to a decrease in the quantity demanded of the other good. The sign of this cross-price elasticity is _____, and the two goods are:

Use the figure A Tax on the Demand for a Good II. A $6 excise tax has been placed on this market. How much of this $6 tax does the seller pay? ​ Figure: A Tax on the Demand for a Good II

The government of Maxistan places a tax on plastic drinking straws. This kind of a tax is called _____ tax.

Does a good that has a perfectly inelastic price elasticity of demand have a lot of substitutes? Explain.

Your friend has a food truck and wants to increase the total revenue that he earns. He thinks that he should raise the price of his good. What advice should you give him? Explain.

A 1 percent increase in the price of good W results in a 3 percent increase in the quantity demanded of good T. What is the cross-price elasticity of demand, and what kinds of goods are they?

In which of the following situations would demand NOT be elastic?

_____ demand is when the price elasticity of demand is less than 1.

When the price of flowers decreases by 20 percent, Anarosa buys 10 percent more flowers. Anarosa's price elasticity of demand is equal to _____, and her demand is:

The total amount of money that a firm receives from selling a good is its:

Foundations of Economics

Extension: Understanding Graphs

Markets and Economies

Demand

Supply

Market Equilibrium

Consumer Behavior

Production Costs

Perfect Competition

Market Power

Factor Markets

Market Failure and Government Failure

Measuring an Economys Performance

Aggregate Demand and Aggregate Supply

Fiscal Policy

Money and Banking

Monetary Policy

Economic Growth and Development

International Trade and Finance

Filters

When Dave raises the price of smart watches by 10 percent, the quantity demanded decreases by 30 percent. The demand for smart watches is _, and Dave's total revenue _ as a result of the price change.

Use the figure A Tax on the Demand for a Good II. A $6 excise tax has been placed on this market. How much of this $6 tax does the seller pay? Figure: A Tax on the Demand for a Good II