Exam 3: Demand Elasticities

Assuming the inverse demand function for good Z can be written as P = 90 - 3Q, when Q is equal to 5, average revenue and marginal revenue are equal to and .

(Multiple Choice)

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Question 81

In the long run, the price elasticity of demand is than in the short run because .

(Multiple Choice)

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Question 82

Assuming the inverse demand function for good Z can be written as P = 90 - 3Q, the corresponding total revenue function is:

(Multiple Choice)

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Question 83

Assume an analyst has been hired to estimate the price elasticity of demand for Levi's brand blue jeans and for blue jeans in general.Ceteris paribus, we would expect the price elasticity of demand in absolute value to be:

(Multiple Choice)

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Question 84

As the amount of time a consumer has to adjust to a change in price increases, so does the price elasticity of demand for a good.

(True/False)

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Question 85

Assuming we are considering a normal good, the calculated price elasticity of demand is:

(Multiple Choice)

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Question 86

When a demand curve is perfectly elastic:

(Multiple Choice)

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Question 87

The available data strongly suggest that, as the "needs" argument would suggest, the demand for health care is virtually perfectly inelastic.

(True/False)

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Question 88

Which of the following statements is correct for the case of a downward-sloping demand curve (beyond the first unit of output)?

(Multiple Choice)

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Question 89

If the local pizzeria raises the price of a medium pizza from $6 to $10 and quantity demanded falls from 700 pizzas a night to 100 pizzas a night, the arc price elasticity of demand for pizzas is:

(Multiple Choice)

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Question 90

In the case of a linear demand curve, average revenue is equal to price, while (with the exception of Q = 1)marginal revenue is less than price.

(True/False)

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Question 91

Knowledge about the price elasticity of demand is especially useful to managers because it allows them to predict how a change in price would affect a firm's total revenues.

(True/False)

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Question 92

Referring to the previous question, as a result of the consumer's adjustment to the change in the price of Y, assuming Y is a normal good and X and Y are complements, it is reasonable to expect that the amount of Y consumed will , and the amount of X consumed will :

(Multiple Choice)

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Question 93

Consider the market for gasoline in a moderately large city.All else constant, it would be reasonable to conclude that the price elasticity demand for any individual gas station would be higher (more elastic)than the price elasticity of demand for gas in general.

(True/False)

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Question 94

When demand is unit elastic, an increase in price will cause total revenue to increase, stay the same, or decrease, depending on the corresponding change in quantity demanded.

(True/False)

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Question 95

The price elasticity of demand is measured as the percentage change in price divided by the percentage change in quantity demanded.

(True/False)

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Question 96

For a particular product, a demand elasticity is a quantitative measure that shows:

(Multiple Choice)

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Question 97

Which of the following statements is true when the consumer is in utility-maximizing equilibrium?

(Multiple Choice)

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Question 98

In order to ensure consistency across goods and services, elasticities should always be calculated based on absolute changes in quantity demanded.

(True/False)

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Question 99

The price elasticity of demand is calculated as:

(Multiple Choice)

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Question 100

Showing 81 - 100 of 112

Assuming the inverse demand function for good Z can be written as P = 90 - 3Q, when Q is equal to 5, average revenue and marginal revenue are equal to and .

In the long run, the price elasticity of demand is than in the short run because .

Assuming the inverse demand function for good Z can be written as P = 90 - 3Q, the corresponding total revenue function is:

Assume an analyst has been hired to estimate the price elasticity of demand for Levi's brand blue jeans and for blue jeans in general.Ceteris paribus, we would expect the price elasticity of demand in absolute value to be:

As the amount of time a consumer has to adjust to a change in price increases, so does the price elasticity of demand for a good.

Assuming we are considering a normal good, the calculated price elasticity of demand is:

When a demand curve is perfectly elastic:

The available data strongly suggest that, as the "needs" argument would suggest, the demand for health care is virtually perfectly inelastic.

Which of the following statements is correct for the case of a downward-sloping demand curve (beyond the first unit of output)?

If the local pizzeria raises the price of a medium pizza from $6 to $10 and quantity demanded falls from 700 pizzas a night to 100 pizzas a night, the arc price elasticity of demand for pizzas is:

In the case of a linear demand curve, average revenue is equal to price, while (with the exception of Q = 1)marginal revenue is less than price.

Knowledge about the price elasticity of demand is especially useful to managers because it allows them to predict how a change in price would affect a firm's total revenues.

Referring to the previous question, as a result of the consumer's adjustment to the change in the price of Y, assuming Y is a normal good and X and Y are complements, it is reasonable to expect that the amount of Y consumed will , and the amount of X consumed will :

Consider the market for gasoline in a moderately large city.All else constant, it would be reasonable to conclude that the price elasticity demand for any individual gas station would be higher (more elastic)than the price elasticity of demand for gas in general.

When demand is unit elastic, an increase in price will cause total revenue to increase, stay the same, or decrease, depending on the corresponding change in quantity demanded.

The price elasticity of demand is measured as the percentage change in price divided by the percentage change in quantity demanded.

For a particular product, a demand elasticity is a quantitative measure that shows:

Which of the following statements is true when the consumer is in utility-maximizing equilibrium?

In order to ensure consistency across goods and services, elasticities should always be calculated based on absolute changes in quantity demanded.

The price elasticity of demand is calculated as:

Managers and Economics

Demand, Supply, and Equilibrium Prices

Techniques for Understanding Consumer Demand and Behavior

Production and Cost Analysis in the Short Run

Production and Cost Analysis in the Long Run

Market Structure: Perfect Competition

Market Structure: Monopoly and Monopolistic Competition

Market Structure: Oligopoly

Pricing Strategies for the Firm

Measuring Macroeconomic Activity

Spending by Individuals, Firms, and Governments on Real Goods and Services

The Role of Money in the Macro Economy

The Aggregate Model of the Macro Economy

International and Balance of Payments Issues in the Macro Economy

Combining Micro and Macro Analysis for Managerial Decision Making

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Exam 3: Demand Elasticities

Assuming the inverse demand function for good Z can be written as P = 90 - 3Q, when Q is equal to 5, average revenue and marginal revenue are equal to ________ and ________.

In the long run, the price elasticity of demand is ________ than in the short run because ________.

Assuming the inverse demand function for good Z can be written as P = 90 - 3Q, the corresponding total revenue function is:

Assume an analyst has been hired to estimate the price elasticity of demand for Levi's brand blue jeans and for blue jeans in general.Ceteris paribus, we would expect the price elasticity of demand in absolute value to be:

As the amount of time a consumer has to adjust to a change in price increases, so does the price elasticity of demand for a good.

Assuming we are considering a normal good, the calculated price elasticity of demand is:

When a demand curve is perfectly elastic:

The available data strongly suggest that, as the "needs" argument would suggest, the demand for health care is virtually perfectly inelastic.

Which of the following statements is correct for the case of a downward-sloping demand curve (beyond the first unit of output)?

If the local pizzeria raises the price of a medium pizza from $6 to $10 and quantity demanded falls from 700 pizzas a night to 100 pizzas a night, the arc price elasticity of demand for pizzas is:

In the case of a linear demand curve, average revenue is equal to price, while (with the exception of Q = 1)marginal revenue is less than price.

Knowledge about the price elasticity of demand is especially useful to managers because it allows them to predict how a change in price would affect a firm's total revenues.

Referring to the previous question, as a result of the consumer's adjustment to the change in the price of Y, assuming Y is a normal good and X and Y are complements, it is reasonable to expect that the amount of Y consumed will ________, and the amount of X consumed will ________:

Consider the market for gasoline in a moderately large city.All else constant, it would be reasonable to conclude that the price elasticity demand for any individual gas station would be higher (more elastic)than the price elasticity of demand for gas in general.

When demand is unit elastic, an increase in price will cause total revenue to increase, stay the same, or decrease, depending on the corresponding change in quantity demanded.

The price elasticity of demand is measured as the percentage change in price divided by the percentage change in quantity demanded.

For a particular product, a demand elasticity is a quantitative measure that shows:

Which of the following statements is true when the consumer is in utility-maximizing equilibrium?

In order to ensure consistency across goods and services, elasticities should always be calculated based on absolute changes in quantity demanded.

The price elasticity of demand is calculated as:

Managers and Economics

Demand, Supply, and Equilibrium Prices

Techniques for Understanding Consumer Demand and Behavior

Production and Cost Analysis in the Short Run

Production and Cost Analysis in the Long Run

Market Structure: Perfect Competition

Market Structure: Monopoly and Monopolistic Competition

Market Structure: Oligopoly

Pricing Strategies for the Firm

Measuring Macroeconomic Activity

Spending by Individuals, Firms, and Governments on Real Goods and Services

The Role of Money in the Macro Economy

The Aggregate Model of the Macro Economy

International and Balance of Payments Issues in the Macro Economy

Combining Micro and Macro Analysis for Managerial Decision Making

Filters

Assuming the inverse demand function for good Z can be written as P = 90 - 3Q, when Q is equal to 5, average revenue and marginal revenue are equal to and .

In the long run, the price elasticity of demand is than in the short run because .

Referring to the previous question, as a result of the consumer's adjustment to the change in the price of Y, assuming Y is a normal good and X and Y are complements, it is reasonable to expect that the amount of Y consumed will , and the amount of X consumed will :