Exam 5: Elasticity

If the quantity supplied of a product increases by a larger percentage than the percentage increase in the price of the same product, supply is considered to be inelastic with respect to price.

(True/False)

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Question 61

Because of poor snowfall, a ski village reduces the prices of chalet rentals by 20%, and this subsequently increases the sale of ski lift tickets by 15%. The cross elasticity of demand is _ and chalet rentals and lift tickets are _.

(Multiple Choice)

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Question 62

When a product's price changes from $26 to $10 and its quantity supplied changes from 200 to 100 units, the price elasticity of supply (using the midpoint method) equals

(Multiple Choice)

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Question 63

Measuring elasticities in percentage terms allows us to

(Multiple Choice)

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Question 64

The demand for a particular brand of a product is more elastic than the demand for the product category.

(True/False)

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Question 65

Average income in the town of Growthville increased by 8% last year, and as a result, sales of pedicures increased by 12%. The income elasticity of demand is _, and pedicures would be classified as a(n) _ good.

(Multiple Choice)

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Question 66

(Figure: Effects of Excise Tax) Based on the graph, after the excise tax is placed on the product, the producer surplus is

(Multiple Choice)

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Question 67

(Figure) The figure shows two supply curves for two different periods for the same product. If the price of the product increased from $20 to $25, the price elasticity of supply will be _ in the short run and _ in the long run using the midpoint method.

(Multiple Choice)

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Question 68

If sales of apples decrease by 5% because of an increase in the price of apples by 10%, the elasticity of demand for apples is

(Multiple Choice)

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Question 69

Which statement does NOT explain the inelastic demand for bread?

(Multiple Choice)

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Question 70

Assume that Vitamin Water and Gatorade are substitutes. Their cross elasticity of demand is

(Multiple Choice)

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Question 71

When income elasticity of demand is equal to -3, the good is a normal good.

(True/False)

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Question 72

Demand for McDonald's hamburgers is more elastic than demand for hamburgers made at home because

(Multiple Choice)

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Question 73

The concept of elasticity is limited to analyzing only the relationship between price and quantity demanded.

(True/False)

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Question 74

If the price of a product falls by 15% and the quantity supplied falls by 25%, the elasticity of supply is

(Multiple Choice)

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Question 75

The current equilibrium price and quantity in the market for walnuts are $5 per pound with 10,000 pounds supplied. Supermarkets are expecting to see the price fall to $4 per pound due to an unusually large crop of walnuts. If the price elasticity of demand is 1.8, what is the new quantity demand for walnuts?

(Multiple Choice)

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Question 76

Taxes on spending make up a larger share of the U.S. government's revenue than do taxes on income sources.

(True/False)

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Question 77

If the price falls from $3 to $2 and the quantity demanded rises from 200 to 400 units, the price elasticity of demand using the midpoint method is

(Multiple Choice)

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Question 78

A normal good is a good that

(Multiple Choice)

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Question 79

A poultry rancher discovered what when she increased the price of organic eggs from $0.75 to $1.00 per dozen, the sales of her eggs fell from 300 dozen per week to 200 dozen per week. Based on the midpoint method, if she wants to increase her total revenue from egg sales, she should

(Multiple Choice)

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Question 80

Showing 61 - 80 of 407

If the quantity supplied of a product increases by a larger percentage than the percentage increase in the price of the same product, supply is considered to be inelastic with respect to price.

Because of poor snowfall, a ski village reduces the prices of chalet rentals by 20%, and this subsequently increases the sale of ski lift tickets by 15%. The cross elasticity of demand is _ and chalet rentals and lift tickets are _.

When a product's price changes from $26 to $10 and its quantity supplied changes from 200 to 100 units, the price elasticity of supply (using the midpoint method) equals

Measuring elasticities in percentage terms allows us to

The demand for a particular brand of a product is more elastic than the demand for the product category.

Average income in the town of Growthville increased by 8% last year, and as a result, sales of pedicures increased by 12%. The income elasticity of demand is _, and pedicures would be classified as a(n) _ good.

(Figure: Effects of Excise Tax) Based on the graph, after the excise tax is placed on the product, the producer surplus is

(Figure) The figure shows two supply curves for two different periods for the same product. If the price of the product increased from $20 to $25, the price elasticity of supply will be _ in the short run and _ in the long run using the midpoint method.

If sales of apples decrease by 5% because of an increase in the price of apples by 10%, the elasticity of demand for apples is

Which statement does NOT explain the inelastic demand for bread?

Assume that Vitamin Water and Gatorade are substitutes. Their cross elasticity of demand is

When income elasticity of demand is equal to -3, the good is a normal good.

Demand for McDonald's hamburgers is more elastic than demand for hamburgers made at home because

The concept of elasticity is limited to analyzing only the relationship between price and quantity demanded.

If the price of a product falls by 15% and the quantity supplied falls by 25%, the elasticity of supply is

Taxes on spending make up a larger share of the U.S. government's revenue than do taxes on income sources.

If the price falls from $3 to $2 and the quantity demanded rises from 200 to 400 units, the price elasticity of demand using the midpoint method is

A normal good is a good that

A poultry rancher discovered what when she increased the price of organic eggs from $0.75 to $1.00 per dozen, the sales of her eggs fell from 300 dozen per week to 200 dozen per week. Based on the midpoint method, if she wants to increase her total revenue from egg sales, she should

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Supply and Demand

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Consumer Choice and Demand

Production and Costs

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Exam 5: Elasticity

If the quantity supplied of a product increases by a larger percentage than the percentage increase in the price of the same product, supply is considered to be inelastic with respect to price.

Because of poor snowfall, a ski village reduces the prices of chalet rentals by 20%, and this subsequently increases the sale of ski lift tickets by 15%. The cross elasticity of demand is _____ and chalet rentals and lift tickets are _____.

When a product's price changes from $26 to $10 and its quantity supplied changes from 200 to 100 units, the price elasticity of supply (using the midpoint method) equals

Measuring elasticities in percentage terms allows us to

The demand for a particular brand of a product is more elastic than the demand for the product category.

Average income in the town of Growthville increased by 8% last year, and as a result, sales of pedicures increased by 12%. The income elasticity of demand is _____, and pedicures would be classified as a(n) _____ good.

(Figure: Effects of Excise Tax) Based on the graph, after the excise tax is placed on the product, the producer surplus is

(Figure) The figure shows two supply curves for two different periods for the same product. If the price of the product increased from $20 to $25, the price elasticity of supply will be _____ in the short run and _____ in the long run using the midpoint method.

If sales of apples decrease by 5% because of an increase in the price of apples by 10%, the elasticity of demand for apples is

Which statement does NOT explain the inelastic demand for bread?

Assume that Vitamin Water and Gatorade are substitutes. Their cross elasticity of demand is

When income elasticity of demand is equal to -3, the good is a normal good.

Demand for McDonald's hamburgers is more elastic than demand for hamburgers made at home because

The concept of elasticity is limited to analyzing only the relationship between price and quantity demanded.

If the price of a product falls by 15% and the quantity supplied falls by 25%, the elasticity of supply is

Taxes on spending make up a larger share of the U.S. government's revenue than do taxes on income sources.

If the price falls from $3 to $2 and the quantity demanded rises from 200 to 400 units, the price elasticity of demand using the midpoint method is

A normal good is a good that

A poultry rancher discovered what when she increased the price of organic eggs from $0.75 to $1.00 per dozen, the sales of her eggs fell from 300 dozen per week to 200 dozen per week. Based on the midpoint method, if she wants to increase her total revenue from egg sales, she should

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

Because of poor snowfall, a ski village reduces the prices of chalet rentals by 20%, and this subsequently increases the sale of ski lift tickets by 15%. The cross elasticity of demand is _ and chalet rentals and lift tickets are _.

Average income in the town of Growthville increased by 8% last year, and as a result, sales of pedicures increased by 12%. The income elasticity of demand is _, and pedicures would be classified as a(n) _ good.

(Figure) The figure shows two supply curves for two different periods for the same product. If the price of the product increased from $20 to $25, the price elasticity of supply will be _ in the short run and _ in the long run using the midpoint method.