Question 1

If demand is perfectly inelastic

Accepted Answer

A) then a 1% increase in price leads to a fall in quantity of greater than 1%. 
B) then a 1% increase in price leads to a fall in quantity of less than 1%. 
C) then a 1% increase in prices then quantity demanded falls to zero. 
D) then a 1% increase in price has no effect on quantity demanded. 
A) then a 1% increase in price leads to a fall in quantity of greater than 1%. 
B) then a 1% increase in price leads to a fall in quantity of less than 1%. 
C) then a 1% increase in prices then quantity demanded falls to zero. 
D) then a 1% increase in price has no effect on quantity demanded.

Question 2

The t-statistic measures

Accepted Answer

A) the efficiency of the t-test relative to the standard z-test. 
B) the probability that the estimated coefficient is within the range of the standard error. 
C) whether the estimated coefficient is independent of the standard error. 
D) whether the estimated coefficient is large relative to the standard error. 
A) the efficiency of the t-test relative to the standard z-test. 
B) the probability that the estimated coefficient is within the range of the standard error. 
C) whether the estimated coefficient is independent of the standard error. 
D) whether the estimated coefficient is large relative to the standard error.

Question 3

If demand is perfectly elastic

Accepted Answer

A) then a 1% increase in price leads to a fall in quantity of greater than 1%. 
B) then a 1% increase in price leads to a fall in quantity of less than 1%. 
C) then a 1% increase in price causes quantity demanded to fall to zero. 
D) then a 1% increase in price has no effect on quantity demanded. 
A) then a 1% increase in price leads to a fall in quantity of greater than 1%. 
B) then a 1% increase in price leads to a fall in quantity of less than 1%. 
C) then a 1% increase in price causes quantity demanded to fall to zero. 
D) then a 1% increase in price has no effect on quantity demanded.

Question 4

Smoothing a time series of observations

Accepted Answer

A) is a form of statistical cheating. 
B) is used to reveal an underlying pattern in the data. 
C) renders the resultant forecast unusable. 
D) allows statisticians to use less data than would otherwise be required. 
A) is a form of statistical cheating. 
B) is used to reveal an underlying pattern in the data. 
C) renders the resultant forecast unusable. 
D) allows statisticians to use less data than would otherwise be required.

If demand is perfectly inelastic

The t-statistic measures

If demand is perfectly elastic

Smoothing a time series of observations

Introduction

Supply and Demand

Consumer Choice

Production

Costs

Firm Organization and Market Structure

Competitive Firms and Markets

Monopoly

Pricing With Market Power

Oligopoly and Monopolistic Competition

Game Theory and Business Strategy

Strategies Over Time

Managerial Decision-Making Under Uncertainty

Asymmetric Information

Government and Business

Global Business

Filters

Exam 3: Empirical Methods for Demand Analysis

If demand is perfectly inelastic

The t-statistic measures

If demand is perfectly elastic

Smoothing a time series of observations

Introduction

Supply and Demand

Consumer Choice

Production

Costs

Firm Organization and Market Structure

Competitive Firms and Markets

Monopoly

Pricing With Market Power

Oligopoly and Monopolistic Competition

Game Theory and Business Strategy

Strategies Over Time

Managerial Decision-Making Under Uncertainty

Asymmetric Information

Government and Business

Global Business

Filters