(Table: Market for Mexican Take-Out) Use Figure: Market for Mexican Take-Out. If income changes from $1,000 to $1,400 per month, the income elasticity of demand, computed using the midpoint method at a price of $18 per Mexican take-out meal, is: $\text { Table: Market for Mexican Take-Out }$ $\begin{array} { | l | l | l | } \hline \text { Price (per meal) } & \begin{array} { l } \text { Quantity of Meals Demanded } \\ \text { (income } = \$ 1,000 \text { per month) } \end{array} & \begin{array} { l } \text { Quantity of Meals Demanded } \\ \text { (income } \$ 1,400 \text { per month) } \end{array} \\ \hline 20 & 3 & 7 \\ \hline 18 & 4 & 8 \\ \hline 16 & 5 & 9 \\ \hline 14 & 6 & 10 \\ \hline 12 & 7 & 11 \\ \hline 10 & 8 & 12 \\ \hline 8 & 9 & 13 \\ \hline 6 & 10 & 14 \\ \hline \end{array}$

A) 0.33. B) 0.50. C) 0.95. D) 2. A) 0.33. B) 0.50. C) 0.95. D) 2.

Exam 5: Elasticity: Measuring Responsiveness

The price of a car wash falls from $10 to $9. In response to this price change, the quantity demanded for car washes increases by 20%. What is the absolute value of the price elasticity of demand for car washes?

(Multiple Choice)

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Question 121

Good M has an income elasticity of demand of 0.5. Which of the following items is good M?

(Multiple Choice)

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Question 122

Explain four factors that affect the price elasticity of supply for a product.

(Essay)

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Question 123

The price of a loaf of sourdough bread falls from $2 to $1. In response to this price change, the quantity demanded for sourdough bread increases by 30%. What is the absolute value of the price elasticity of demand for sourdough bread?

(Multiple Choice)

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Question 124

You are told that good M has an income elasticity of demand of 5. Which of the following items might good M be?

(Multiple Choice)

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Question 125

You are given some data for four different products - milk, eggs, beef, and orange juice. The absolute value of the price elasticity of demand for milk is 3. The absolute value of the price elasticity of demand for eggs is 1.2. The absolute value of the price elasticity of demand for beef is 0.9. The absolute value of the price elasticity of demand for orange juice is 3.5. Which product has the most elastic demand?

(Multiple Choice)

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Question 126

Suppose the price of Cheerios rises by 10%, and the quantity of milk sold decreases by 20%. We know that the:

(Multiple Choice)

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Question 127

The cross-price elasticity of demand measures how responsive the:

(Multiple Choice)

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Question 128

Which pair of goods is MOST likely to have a cross-price elasticity of demand that is greater than zero?

(Multiple Choice)

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Question 129

(Table: Market for Mexican Take-Out) Use Figure: Market for Mexican Take-Out. If income changes from $1,000 to $1,400 per month, the income elasticity of demand, computed using the midpoint method at a price of $18 per Mexican take-out meal, is: $\text { Table: Market for Mexican Take-Out }$ Price (per meal) Quantity of Meals Demanded (income =\ 1,000 per month) Quantity of Meals Demanded (income \ 1,400 per month) 20 3 7 18 4 8 16 5 9 14 6 10 12 7 11 10 8 12 8 9 13 6 10 14

(Multiple Choice)

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Question 130

The state of Texas recently saw a gasoline price increase of 5%, which brought about a fall in the quantity of gasoline purchased of 1%. The price elasticity of demand is equal to _, and demand is described as _.

(Multiple Choice)

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Question 131

(Figure: Estimating Price Elasticity in the Market for Garden Gnomes) Use Figure: Estimating Price Elasticity in the Market for Garden Gnomes. Between the two prices, P₁ and P₂, which demand curve has the lowest price elasticity?

(Multiple Choice)

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Question 132

The price elasticity of supply for a good is 2 if a _____ in price leads to a 4% decrease in the quantity supplied.

(Multiple Choice)

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Question 133

If income rises by 20% and the quantity demanded of an item falls by 20%, the income elasticity of demand for this item is:

(Multiple Choice)

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Question 134

(Figure: Market for Avocados) The figure shows the market for avocados. If the seller changes the price per avocado from $1.50 to $1.75, the change in total revenue is:

(Multiple Choice)

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Question 135

A 10% decrease in income increases the quantity demanded of online movie rentals by 3%. The income elasticity of demand for online movie rentals is _, and online movie rentals are a(n) _ good.

(Multiple Choice)

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Question 136

If income rises by 20% and the quantity demanded of an item rises by 10%, the income elasticity of demand for this item is:

(Multiple Choice)

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Question 137

If the price of herring increases by 8%, and the quantity demanded falls by 20%, demand is _. This decrease in price will therefore lead to a(n) _ in total revenue.

(Multiple Choice)

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Question 138

The price of a dozen eggs falls from $2.50 to $1.50. In response to the price change, quantity demanded for eggs increases by 30%. The absolute value of the price elasticity of demand for eggs is _, and the price elasticity of demand is _.

(Multiple Choice)

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Question 139

If your purchases of yoga pants increase from 9 pairs per year to 11 pairs per year when your income increases from $39,000 to $44,000 a year, for you, yoga pants are a(n) _____ good.

(Multiple Choice)

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Question 140

Showing 121 - 140 of 182

Exam 5: Elasticity: Measuring Responsiveness

The price of a car wash falls from $10 to $9. In response to this price change, the quantity demanded for car washes increases by 20%. What is the absolute value of the price elasticity of demand for car washes?

Good M has an income elasticity of demand of 0.5. Which of the following items is good M?

Explain four factors that affect the price elasticity of supply for a product.

The price of a loaf of sourdough bread falls from $2 to $1. In response to this price change, the quantity demanded for sourdough bread increases by 30%. What is the absolute value of the price elasticity of demand for sourdough bread?

You are told that good M has an income elasticity of demand of 5. Which of the following items might good M be?

Suppose the price of Cheerios rises by 10%, and the quantity of milk sold decreases by 20%. We know that the:

The cross-price elasticity of demand measures how responsive the:

Which pair of goods is MOST likely to have a cross-price elasticity of demand that is greater than zero?

The state of Texas recently saw a gasoline price increase of 5%, which brought about a fall in the quantity of gasoline purchased of 1%. The price elasticity of demand is equal to _____, and demand is described as _____.

(Figure: Estimating Price Elasticity in the Market for Garden Gnomes) Use Figure: Estimating Price Elasticity in the Market for Garden Gnomes. Between the two prices, P1 and P2, which demand curve has the lowest price elasticity?

The price elasticity of supply for a good is 2 if a _____ in price leads to a 4% decrease in the quantity supplied.

If income rises by 20% and the quantity demanded of an item falls by 20%, the income elasticity of demand for this item is:

(Figure: Market for Avocados) The figure shows the market for avocados. If the seller changes the price per avocado from $1.50 to $1.75, the change in total revenue is:

A 10% decrease in income increases the quantity demanded of online movie rentals by 3%. The income elasticity of demand for online movie rentals is _____, and online movie rentals are a(n) _____ good.

If income rises by 20% and the quantity demanded of an item rises by 10%, the income elasticity of demand for this item is:

If the price of herring increases by 8%, and the quantity demanded falls by 20%, demand is _____. This decrease in price will therefore lead to a(n) _____ in total revenue.

The price of a dozen eggs falls from $2.50 to $1.50. In response to the price change, quantity demanded for eggs increases by 30%. The absolute value of the price elasticity of demand for eggs is _____, and the price elasticity of demand is _____.

If your purchases of yoga pants increase from 9 pairs per year to 11 pairs per year when your income increases from $39,000 to $44,000 a year, for you, yoga pants are a(n) _____ good.

The Core Principles of Economics

Demand: Thinking Like a Buyer

Supply: Thinking Like a Seller

Equilibrium: Where Supply Meets Demand

When Governments Intervene in Markets

Welfare and Efficiency

Gains From Trade

International Trade

Externalities and Public Goods

Labor Demand and Supply

Wages, Workers, and Management

Inequality, Social Insurance, and Redistribution

Market Structure and Market Power

Entry, Exit, and Long-Run Profitability

Business Strategy

Sophisticated Pricing Strategies

Game Theory and Strategic Choices

Decisions Involving Uncertainty

Decisions With Private Information

Sizing up the Economy Using Gdp

Economic Growth

Unemployment

Inflation and Money

Consumption and Saving

Investment

The Financial Sector

International Finance and the Exchange Rate

Business Cycles

IS-MP Analysis: Interest Rates and Output

Phillips Curve

The Fed Model: Linking Interest Rates, Output, and Inflation

Aggregate Demand and Aggregate Supply

Monetary Policy

Government Spending, Taxes, and Fiscal Policy

Appendix: Aggregate Expenditure and the Multiplier

Filters

The state of Texas recently saw a gasoline price increase of 5%, which brought about a fall in the quantity of gasoline purchased of 1%. The price elasticity of demand is equal to _, and demand is described as _.

(Figure: Estimating Price Elasticity in the Market for Garden Gnomes) Use Figure: Estimating Price Elasticity in the Market for Garden Gnomes. Between the two prices, P₁ and P₂, which demand curve has the lowest price elasticity?

A 10% decrease in income increases the quantity demanded of online movie rentals by 3%. The income elasticity of demand for online movie rentals is _, and online movie rentals are a(n) _ good.

If the price of herring increases by 8%, and the quantity demanded falls by 20%, demand is _. This decrease in price will therefore lead to a(n) _ in total revenue.

The price of a dozen eggs falls from $2.50 to $1.50. In response to the price change, quantity demanded for eggs increases by 30%. The absolute value of the price elasticity of demand for eggs is _, and the price elasticity of demand is _.