Exam 4: Elasticity

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Suppose we have two pairs of substitute goods. The first are very close substitutes, such as Coke and Pepsi, while the others are less close, such as Coke and iced tea. We would expect the cross elasticity of the closer pair to be

(Multiple Choice)

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Question 121

The numerical value of a price elasticity represents the percentage amount by which the quantity demanded changes when the price

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Question 122

Engel's Law claims that

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Question 123

If a $1 increase in price leads to a $1 decrease in total revenue, then demand must be elastic.

(True/False)

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Question 124

Consider the segment of a demand curve along which all price elasticities of demand are less than 1. A decrease in price anywhere along that segment

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Question 125

The more price elastic the demand curve, the less quantity demanded will fall when a per-unit tax is imposed.

(True/False)

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Question 126

All cross elasticities are positive.

(True/False)

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Question 127

Economists use elasticity as a tool to measure

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Question 128

If the price elasticity of demand for shelled, roasted, unsalted peanuts is 0.86 at current prices, a small increase in price will raise producers' total revenue.

(True/False)

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Question 129

All elasticities are measures of responsiveness.

(True/False)

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Question 130

An increase in the price of good X causes the demand curve for good Y to shift to the left. We know then that

(Multiple Choice)

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Question 131

An elasticity is a measure of sensitivity.

(True/False)

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Question 132

Which of the following statements is true?

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Question 133

The "Applied Perspective" titled "Cross Elasticity in the Salmon Industry" suggests that the cross elasticity of demand between farm-raised salmon and wild salmon is

(Multiple Choice)

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Question 134

If a 1 percent decrease in the price of one good generates a 3 percent increase in the quantity demanded for another good, then the

(Multiple Choice)

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Question 135

Sue's Bagel Shop wants to estimate how responsive the demand for bagels is to a change in her cream cheese prices. To accomplish this task, the following data would not be needed:

(Multiple Choice)

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Question 136

Price elasticity of demand measures the

(Multiple Choice)

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Question 137

Breakfast anyone? Which of the following pairs best represents complementary goods?

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Question 138

The demand for gasoline is expected to be more elastic in the long run than in the short run.

(True/False)

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Question 139

The calculation of the responsiveness of suppliers to changing prices is represented by

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Question 140

Showing 121 - 140 of 160

Exam 4: Elasticity

Suppose we have two pairs of substitute goods. The first are very close substitutes, such as Coke and Pepsi, while the others are less close, such as Coke and iced tea. We would expect the cross elasticity of the closer pair to be

The numerical value of a price elasticity represents the percentage amount by which the quantity demanded changes when the price

Engel's Law claims that

If a $1 increase in price leads to a $1 decrease in total revenue, then demand must be elastic.

Consider the segment of a demand curve along which all price elasticities of demand are less than 1. A decrease in price anywhere along that segment

The more price elastic the demand curve, the less quantity demanded will fall when a per-unit tax is imposed.

All cross elasticities are positive.

Economists use elasticity as a tool to measure

If the price elasticity of demand for shelled, roasted, unsalted peanuts is 0.86 at current prices, a small increase in price will raise producers' total revenue.

All elasticities are measures of responsiveness.

An increase in the price of good X causes the demand curve for good Y to shift to the left. We know then that

An elasticity is a measure of sensitivity.

Which of the following statements is true?

The "Applied Perspective" titled "Cross Elasticity in the Salmon Industry" suggests that the cross elasticity of demand between farm-raised salmon and wild salmon is

If a 1 percent decrease in the price of one good generates a 3 percent increase in the quantity demanded for another good, then the

Sue's Bagel Shop wants to estimate how responsive the demand for bagels is to a change in her cream cheese prices. To accomplish this task, the following data would not be needed:

Price elasticity of demand measures the

Breakfast anyone? Which of the following pairs best represents complementary goods?

The demand for gasoline is expected to be more elastic in the long run than in the short run.

The calculation of the responsiveness of suppliers to changing prices is represented by

Introduction

Production Possibilities and Opportunity Costs

Demand and Supply

Happiness, Utility, and Consumer Choice

Price Ceilings and Price Floors

Entrepreneurship and Business Ownership

Costs of Production

Maximizing Profit

Identifying Markets and Market Structures

Price and Output in Monopoly, Monopolistic Competition, and Perfect Competition

Price and Output Determination Under Oligopoly

Antitrust and Regulation

Externalities, Market Failure, and Public Choice

Wage Rates in Competitive Labor Markets

Wages and Employment: Monopsony and Labor Unions

Interest, Rent, and Profit

Income Distribution and Poverty

International Trade

Exchange Rates, Balance of Payments, and International Debt

The Economic Problems of Less-Developed Economies

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