Exam 7: Consumer Choice and Elasticity

Explore all topics

Suppose that the quantity of DVD players sold increased from 200 to 400 when the price fell from $225 to $175. Over this price range, the absolute value of the price elasticity of demand for DVD players is

(Multiple Choice)

5.0/5

(39)

Question 41

Since the income elasticity for food is estimated to be 0.51, it appears that the proportion of income spent by poor people on food is ____ the proportion spent by those with higher incomes.

(Multiple Choice)

4.9/5

(32)

Question 42

When the price elasticity of demand is large, then

(Multiple Choice)

4.9/5

(32)

Question 43

If you compared the short-run demand and long-run demand for education at your college, you would almost certainly find that

(Multiple Choice)

4.8/5

(29)

Question 44

In which of the following cases will the total spending on a good decrease?

(Multiple Choice)

4.9/5

(39)

Question 45

Which of the following describes a situation in which demand must be inelastic?

(Multiple Choice)

4.8/5

(36)

Question 46

If a demand curve for a good were completely vertical, it would be considered

(Multiple Choice)

4.9/5

(34)

Question 47

If Sarah's income rises by 20 percent, and, as a result, she purchases 40 percent more designer clothing, her income elasticity for designer clothing is

(Multiple Choice)

4.8/5

(28)

Question 48

If the elasticity of demand for cigarettes is 0.4, then an increase in the price of a pack of cigarettes from $1.00 to $1.30 would reduce quantities demanded by about

(Multiple Choice)

4.9/5

(32)

Question 49

A good is classified as inferior if

(Multiple Choice)

4.7/5

(30)

Question 50

Demand will be more elastic when

(Multiple Choice)

4.8/5

(32)

Question 51

"After eating nothing but fast-food hamburgers on spring break, I was anxious to return home and eat something different." This statement most clearly reflects the law of

(Multiple Choice)

4.8/5

(41)

Question 52

A car wash currently sells 30 car washes a day at a price of $5. Total daily revenue is now $150. If they lower their price to $3,

(Multiple Choice)

4.9/5

(30)

Question 53

Jeff likes Pepsi and pizza. When the price of pizza rises, the substitution effect causes Pepsi to be relatively

(Multiple Choice)

4.8/5

(35)

Question 54

Members of Alpha fraternity have developed a strong liking for Coca-Cola. Beta fraternity members buy the same amount of Coke but believe Pepsi is just about as good. From this, we can infer that

(Multiple Choice)

4.7/5

(27)

Question 55

All things equal, the price elasticity of supply

(Multiple Choice)

4.8/5

(39)

Question 56

The fact that a gallon of gasoline commands a higher market price than a gallon of water indicates that

(Multiple Choice)

4.9/5

(38)

Question 57

The price of an airline ticket rises as the amount of time between purchase and flight departure gets smaller. The airlines base the policy on the assumption that

(Multiple Choice)

4.7/5

(33)

Question 58

Suppose the value of income elasticity of demand for a private college education is equal to 1.5. This means that

(Multiple Choice)

4.9/5

(25)

Question 59

Figure 7-15 -Refer to Figure 7-15. Along which of these segments of the supply curve is supply most elastic?

(Multiple Choice)

4.9/5

(44)

Question 60

Showing 41 - 60 of 223

Exam 7: Consumer Choice and Elasticity

Suppose that the quantity of DVD players sold increased from 200 to 400 when the price fell from $225 to $175. Over this price range, the absolute value of the price elasticity of demand for DVD players is

Since the income elasticity for food is estimated to be 0.51, it appears that the proportion of income spent by poor people on food is ____ the proportion spent by those with higher incomes.

When the price elasticity of demand is large, then

If you compared the short-run demand and long-run demand for education at your college, you would almost certainly find that

In which of the following cases will the total spending on a good decrease?

Which of the following describes a situation in which demand must be inelastic?

If a demand curve for a good were completely vertical, it would be considered

If Sarah's income rises by 20 percent, and, as a result, she purchases 40 percent more designer clothing, her income elasticity for designer clothing is

If the elasticity of demand for cigarettes is 0.4, then an increase in the price of a pack of cigarettes from $1.00 to $1.30 would reduce quantities demanded by about

A good is classified as inferior if

Demand will be more elastic when

"After eating nothing but fast-food hamburgers on spring break, I was anxious to return home and eat something different." This statement most clearly reflects the law of

A car wash currently sells 30 car washes a day at a price of $5. Total daily revenue is now $150. If they lower their price to $3,

Jeff likes Pepsi and pizza. When the price of pizza rises, the substitution effect causes Pepsi to be relatively

Members of Alpha fraternity have developed a strong liking for Coca-Cola. Beta fraternity members buy the same amount of Coke but believe Pepsi is just about as good. From this, we can infer that

All things equal, the price elasticity of supply

The fact that a gallon of gasoline commands a higher market price than a gallon of water indicates that

The price of an airline ticket rises as the amount of time between purchase and flight departure gets smaller. The airlines base the policy on the assumption that

Suppose the value of income elasticity of demand for a private college education is equal to 1.5. This means that

Figure 7-15 -Refer to Figure 7-15. Along which of these segments of the supply curve is supply most elastic?

The Economic Approach

A: Some Tools of the Economist

B: Some Tools of the Economist

A: Supply, Demand, and the Market Process

B: Supply, Demand, and the Market Process

A: Supply and Demand: Applications and Extensions

B: Supply and Demand: Applications and Extensions

Difficult Cases for the Market and the Role of Government

The Economics of Collective Decision-Making

A: Costs and the Supply of Goods

B: Costs and the Supply of Goods

A: Price Takers and the Competitive Process

B: Price Takers and the Competitive Process

Price-Searcher Markets With Low Entry Barriers

A: Price-Searcher Markets With High Entry Barriers

B: Price-Searcher Markets With High Entry Barriers

The Supply of and Demand for Productive Resources

Earnings, Productivity, and the Job Market

Investment, the Capital Market, and the Wealth of Nations

Income Inequality and Poverty

Appendix: Government Spending and Taxation

Appendix: the Economics of Social Security

Appendix: the Stock Market: Its Function, Performance, and Potential As an Investment Opportunity

Appendix: Great Debates in Economics: Keynes Versus Hayek

Appendix: the Crisis of 2008: Causes and Lessons for the Future

Appendix: Lessons From the Great Depression

Appendix: the Economics of Healthcare

Appendix:education: Problems and Performance

Appendix: Earnings Differences Between Men and Women

Appendix: the Question of Resource Exhaustion

Appendix: Do Labor Unions Increase the Wages of Workers

Appendix: Difficult Environmental Cases and the Role of Government

Filters