Exam 5: Elasticity

As the price of bananas fell from $0.60 to $0.40 per pound, the quantity demanded rose from 300 pounds of bananas consumed to 500 pounds of bananas consumed. The price elasticity of demand (using the midpoint method) is

(Multiple Choice)

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Question 281

If the price of downloaded music falls by 10% and the quantity demanded of downloaded music increases by 20%, then the price elasticity of demand equals 2.

(True/False)

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Question 282

The greater the percentage of the budget spent on a good, the

(Multiple Choice)

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Question 283

Alvaro pays $40 in tax on a $120 item. Nurul pays $80 in tax on a $240 item. We can conclude that this is a _____ tax.

(Multiple Choice)

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Question 284

Raising prices lowers total revenue for a product with inelastic demand and raises total revenue for a product with elastic demand.

(True/False)

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Question 285

Products a and b are substitutes if E_ab is positive.

(True/False)

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Question 286

The long run is defined as the period during which plant capacity and the number of firms in an industry cannot change.

(True/False)

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Question 287

During the short run, companies cannot make any changes to their production process.

(True/False)

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Question 288

Economists use the absolute value of the price elasticity of demand.

(True/False)

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Question 289

Describe the difference between elastic and inelastic price elasticity of demand and give the range of numerical values for each.

(Essay)

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Question 290

The price elasticity of demand for a good with a horizontal demand curve

(Multiple Choice)

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Question 291

If the price elasticity of demand is 0.5, then the demand is

(Multiple Choice)

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Question 292

Which of these is the MOST likely to have the highest elasticity of demand?

(Multiple Choice)

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Question 293

If quantity demanded rises by 60% and price falls by 20%, the price elasticity of demand is

(Multiple Choice)

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Question 294

Increasing prices _ total revenue for a product with inelastic demand and _ total revenue for a product with elastic demand.

(Multiple Choice)

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Question 295

In which situation would consumers bear the highest incidence of a tax?

(Multiple Choice)

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Question 296

Assume the price of a good is $1 and total revenue is $200. If the price of the same good increases to $2 and total revenue increases to $400, you know that the demand for the product is

(Multiple Choice)

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Question 297

Deadweight loss is minimized when both the demand and supply curves are price inelastic.

(True/False)

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Question 298

When goods A and B are substitutes, their

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Question 299

Why do economists use percentages to measure elasticity?

(Essay)

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Question 300

Showing 281 - 300 of 407

As the price of bananas fell from $0.60 to $0.40 per pound, the quantity demanded rose from 300 pounds of bananas consumed to 500 pounds of bananas consumed. The price elasticity of demand (using the midpoint method) is

If the price of downloaded music falls by 10% and the quantity demanded of downloaded music increases by 20%, then the price elasticity of demand equals 2.

The greater the percentage of the budget spent on a good, the

Alvaro pays $40 in tax on a $120 item. Nurul pays $80 in tax on a $240 item. We can conclude that this is a _____ tax.

Raising prices lowers total revenue for a product with inelastic demand and raises total revenue for a product with elastic demand.

Products a and b are substitutes if E_ab is positive.

The long run is defined as the period during which plant capacity and the number of firms in an industry cannot change.

During the short run, companies cannot make any changes to their production process.

Economists use the absolute value of the price elasticity of demand.

Describe the difference between elastic and inelastic price elasticity of demand and give the range of numerical values for each.

The price elasticity of demand for a good with a horizontal demand curve

If the price elasticity of demand is 0.5, then the demand is

Which of these is the MOST likely to have the highest elasticity of demand?

If quantity demanded rises by 60% and price falls by 20%, the price elasticity of demand is

Increasing prices _ total revenue for a product with inelastic demand and _ total revenue for a product with elastic demand.

In which situation would consumers bear the highest incidence of a tax?

Assume the price of a good is $1 and total revenue is $200. If the price of the same good increases to $2 and total revenue increases to $400, you know that the demand for the product is

Deadweight loss is minimized when both the demand and supply curves are price inelastic.

When goods A and B are substitutes, their

Why do economists use percentages to measure elasticity?

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Exam 5: Elasticity

As the price of bananas fell from $0.60 to $0.40 per pound, the quantity demanded rose from 300 pounds of bananas consumed to 500 pounds of bananas consumed. The price elasticity of demand (using the midpoint method) is

If the price of downloaded music falls by 10% and the quantity demanded of downloaded music increases by 20%, then the price elasticity of demand equals 2.

The greater the percentage of the budget spent on a good, the

Alvaro pays $40 in tax on a $120 item. Nurul pays $80 in tax on a $240 item. We can conclude that this is a _____ tax.

Raising prices lowers total revenue for a product with inelastic demand and raises total revenue for a product with elastic demand.

Products a and b are substitutes if Eab is positive.

The long run is defined as the period during which plant capacity and the number of firms in an industry cannot change.

During the short run, companies cannot make any changes to their production process.

Economists use the absolute value of the price elasticity of demand.

Describe the difference between elastic and inelastic price elasticity of demand and give the range of numerical values for each.

The price elasticity of demand for a good with a horizontal demand curve

If the price elasticity of demand is 0.5, then the demand is

Which of these is the MOST likely to have the highest elasticity of demand?

If quantity demanded rises by 60% and price falls by 20%, the price elasticity of demand is

Increasing prices _____ total revenue for a product with inelastic demand and _____ total revenue for a product with elastic demand.

In which situation would consumers bear the highest incidence of a tax?

Assume the price of a good is $1 and total revenue is $200. If the price of the same good increases to $2 and total revenue increases to $400, you know that the demand for the product is

Deadweight loss is minimized when both the demand and supply curves are price inelastic.

When goods A and B are substitutes, their

Why do economists use percentages to measure elasticity?

Exploring Economics

Production, Economic Growth, and Trade

Supply and Demand

Markets and Government

Consumer Choice and Demand

Production and Costs

Perfect Competition

Monopoly

Monopolistic Competition, Oligopoly, and Game Theory

The Labor Market

Land, Capital Markets, and Innovation

Externalities and Public Goods

Network Goods

Poverty and Income Distribution

International Trade

Filters

Products a and b are substitutes if E_ab is positive.

Increasing prices _ total revenue for a product with inelastic demand and _ total revenue for a product with elastic demand.