Exam 6: Elasticity: the Responsiveness of Demand and Supply

Suppose that the price of a money clip increases from $0.75 to $0.90 and quantity supplied rises from 8,000 units to 10,000 units.Use the midpoint formula to calculate the price elasticity of supply.

(Multiple Choice)

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Question 181

Table 6-8 The town of Bloomfield is well known for its basketball team.The price of basketball game tickets is determined by market forces.Table 6-8 above shows the demand and supply schedules for basketball games tickets. -Refer to Table 6-8.What is the numerical value of the price elasticity of supply?

(Multiple Choice)

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Question 182

Using cross-sectional data from the two Housing Assistance Supply Experiment (HASE)sites--Brown County, Wisconsin, and St.Joseph County, Indiana-- John Mulford of Rand Research estimates the long-run "permanent" income elasticity of housing expenditures to be 0.45 for owners.Using this information, what is likely to happen to housing expenditures if the government increases income transfers to recipients in HASE sites?

(Multiple Choice)

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Question 183

With the increased usage of cell phone services, what has happened to the price elasticity of demand for land-line telephone services?

(Multiple Choice)

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Question 184

Which of the following statements is true?

(Multiple Choice)

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Question 185

If the cross-price elasticity of demand for goods A and B is zero, this means the two goods are unrelated.

(True/False)

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Question 186

Assume that a 50 percent gasoline tax led to a large increase in its price and only a small decrease in the quantity of gasoline demanded.Economic analysis would lead one to conclude that

(Multiple Choice)

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Question 187

Figure 6-8 -Refer to Figure 6-8.Identify the two goods which are complements.

(Multiple Choice)

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Question 188

Suppose the supply curve for digital cameras shifts to the right.This will cause a relatively large decrease in the price of digital cameras if both demand and supply are inelastic.

(True/False)

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Question 189

Supply is elastic whenever the value of the elasticity of supply is positive and greater than 1.

(True/False)

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Question 190

If a firm wanted to know whether the demand for its product was elastic, unit elastic, or inelastic, then the firm could

(Multiple Choice)

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Question 191

If demand is perfectly elastic, the absolute value of the price elasticity coefficient is

(Multiple Choice)

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Question 192

Suppose you are considering buying stock in the stock market, and your objective is to maximize your net worth.Furthermore, your study of the market reveals that the economy will be slowing down over the next several months.Under these conditions, it would be best to purchase stock in companies that produce

(Multiple Choice)

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Question 193

Figure 6-11 -Refer to Figure 6-11.What is the value of the price elasticity of supply between g and h?

(Multiple Choice)

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Question 194

Suppose the demand for milk is relatively inelastic.What happens to sales revenue if the government imposes a price floor above the free-market equilibrium price in the market for milk?

(Multiple Choice)

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Question 195

Suppose at the current price, the demand for copper is estimated at -3.14.What happens to sales revenue if the government imposes a price ceiling below the free market equilibrium price in the copper market?

(Multiple Choice)

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Question 196

When the price of tortilla chips rose by 10 percent, the quantity of tortilla chips sold fell 4 percent, and the sale of dips (like salsa and bean dip)fell 8 percent.This set of facts indicates that the cross-price elasticity between tortilla chips and dips is , so the two are .

(Multiple Choice)

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Question 197

The cross-price elasticity of demand measures the

(Multiple Choice)

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Question 198

Economists use the concept of ________ to measure how one economic variable, such as quantity, responds to a change in another economic variable, such as price.

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Question 199

If the demand for a product is perfectly inelastic, a decrease in the price of the product

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Question 200

Showing 181 - 200 of 295

Suppose that the price of a money clip increases from $0.75 to $0.90 and quantity supplied rises from 8,000 units to 10,000 units.Use the midpoint formula to calculate the price elasticity of supply.

With the increased usage of cell phone services, what has happened to the price elasticity of demand for land-line telephone services?

Which of the following statements is true?

If the cross-price elasticity of demand for goods A and B is zero, this means the two goods are unrelated.

Assume that a 50 percent gasoline tax led to a large increase in its price and only a small decrease in the quantity of gasoline demanded.Economic analysis would lead one to conclude that

Figure 6-8 -Refer to Figure 6-8.Identify the two goods which are complements.

Suppose the supply curve for digital cameras shifts to the right.This will cause a relatively large decrease in the price of digital cameras if both demand and supply are inelastic.

Supply is elastic whenever the value of the elasticity of supply is positive and greater than 1.

If a firm wanted to know whether the demand for its product was elastic, unit elastic, or inelastic, then the firm could

If demand is perfectly elastic, the absolute value of the price elasticity coefficient is

Figure 6-11 -Refer to Figure 6-11.What is the value of the price elasticity of supply between g and h?

Suppose the demand for milk is relatively inelastic.What happens to sales revenue if the government imposes a price floor above the free-market equilibrium price in the market for milk?

Suppose at the current price, the demand for copper is estimated at -3.14.What happens to sales revenue if the government imposes a price ceiling below the free market equilibrium price in the copper market?

When the price of tortilla chips rose by 10 percent, the quantity of tortilla chips sold fell 4 percent, and the sale of dips (like salsa and bean dip)fell 8 percent.This set of facts indicates that the cross-price elasticity between tortilla chips and dips is , so the two are .

The cross-price elasticity of demand measures the

Economists use the concept of ________ to measure how one economic variable, such as quantity, responds to a change in another economic variable, such as price.

If the demand for a product is perfectly inelastic, a decrease in the price of the product

Economics: Foundations and Models

Trade-Offs, Comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency, Government Price Setting, and Taxes

Externalities, Environmental Policy, and Public Goods

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

Consumer Choice and Behavioral Economics

Technology, Production, and Costs

Firms in Perfectly Competitive Markets

Monopolistic Competition: the Competitive Model in a More Realistic Setting

Oligopoly: Firms in Less Competitive Markets

Monopoly and Antitrust Policy

Pricing Strategy

The Markets for Labor and Other Factors of Production

Public Choice, Taxes, and the Distribution of Income

Filters

Exam 6: Elasticity: the Responsiveness of Demand and Supply

Suppose that the price of a money clip increases from $0.75 to $0.90 and quantity supplied rises from 8,000 units to 10,000 units.Use the midpoint formula to calculate the price elasticity of supply.

With the increased usage of cell phone services, what has happened to the price elasticity of demand for land-line telephone services?

Which of the following statements is true?

If the cross-price elasticity of demand for goods A and B is zero, this means the two goods are unrelated.

Assume that a 50 percent gasoline tax led to a large increase in its price and only a small decrease in the quantity of gasoline demanded.Economic analysis would lead one to conclude that

Figure 6-8 -Refer to Figure 6-8.Identify the two goods which are complements.

Suppose the supply curve for digital cameras shifts to the right.This will cause a relatively large decrease in the price of digital cameras if both demand and supply are inelastic.

Supply is elastic whenever the value of the elasticity of supply is positive and greater than 1.

If a firm wanted to know whether the demand for its product was elastic, unit elastic, or inelastic, then the firm could

If demand is perfectly elastic, the absolute value of the price elasticity coefficient is

Figure 6-11 -Refer to Figure 6-11.What is the value of the price elasticity of supply between g and h?

Suppose the demand for milk is relatively inelastic.What happens to sales revenue if the government imposes a price floor above the free-market equilibrium price in the market for milk?

Suppose at the current price, the demand for copper is estimated at -3.14.What happens to sales revenue if the government imposes a price ceiling below the free market equilibrium price in the copper market?

When the price of tortilla chips rose by 10 percent, the quantity of tortilla chips sold fell 4 percent, and the sale of dips (like salsa and bean dip)fell 8 percent.This set of facts indicates that the cross-price elasticity between tortilla chips and dips is ________, so the two are ________.

The cross-price elasticity of demand measures the

Economists use the concept of ________ to measure how one economic variable, such as quantity, responds to a change in another economic variable, such as price.

If the demand for a product is perfectly inelastic, a decrease in the price of the product

Economics: Foundations and Models

Trade-Offs, Comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency, Government Price Setting, and Taxes

Externalities, Environmental Policy, and Public Goods

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

Consumer Choice and Behavioral Economics

Technology, Production, and Costs

Firms in Perfectly Competitive Markets

Monopolistic Competition: the Competitive Model in a More Realistic Setting

Oligopoly: Firms in Less Competitive Markets

Monopoly and Antitrust Policy

Pricing Strategy

The Markets for Labor and Other Factors of Production

Public Choice, Taxes, and the Distribution of Income

Filters

When the price of tortilla chips rose by 10 percent, the quantity of tortilla chips sold fell 4 percent, and the sale of dips (like salsa and bean dip)fell 8 percent.This set of facts indicates that the cross-price elasticity between tortilla chips and dips is , so the two are .