\[\begin{array} { c c } \begin{array} { c } \text { Price } \\ \text { (dollars per cake) } \end{array} & \begin{array} { c } \text { Quantity demanded } \\ \text { (gallons of ice cream per week) } \end{array} \\ \hline 2 & 10 \\ 4 & 6 \\ \hline \end{array}\] -Based on data in the table above, use the midpoint method to determine the cross elasticity of demand for ice cream and cake.

A) The cross elasticity is -0.75. B) The cross elasticity is -1.75. C) The cross elasticity is -0.83. D) The cross elasticity is -4.0. E) The cross elasticity is -1.33. A) The cross elasticity is -0.75. B) The cross elasticity is -1.75. C) The cross elasticity is -0.83. D) The cross elasticity is -4.0. E) The cross elasticity is -1.33.

Exam 5: Elasticities of Demand and Supply

Which of the following is true? I. The easier it is to find substitutes for a good, the more price elastic the demand for the good is. Ii. The demand for a good is more price elastic the smaller the proportion of income spent on it. Iii. If demand is price elastic, lowering the price leads to a decrease in total revenue.

(Multiple Choice)

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Question 161

If you spend a large portion of your income on a good,

(Multiple Choice)

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Question 162

-The demand curve shown in the figure above is ________ over the price range from $95 to $105 per unit.

(Multiple Choice)

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Question 163

Price (dollars per cake) Quantity demanded (gallons of ice cream per week) 2 10 4 6 -Based on data in the table above, use the midpoint method to determine the cross elasticity of demand for ice cream and cake.

(Multiple Choice)

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Question 164

Suppose the price of a ticket to a Lenny Kravitz concert is $41 and at that price, the quantity of tickets demanded is 17,000 per concert. Using the midpoint method of calculating percentage changes, if Mr. Kravitz raises the price to $48 and the quantity demanded decreases to 16,000, the price elasticity of demand for his concert tickets is

(Multiple Choice)

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Question 165

Which of the following explains why supply is more elastic as more time passes?

(Multiple Choice)

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Question 166

The figure above shows the demand curve for Starbucks latte. -In the figure above, the demand is elastic in the range of prices between

(Multiple Choice)

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Question 167

It is very difficult for Gourmet Chocolatier to find inexpensive and available inputs for the business. Because of this, we predict that Gourmet Chocolatier's supply to be

(Multiple Choice)

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Question 168

When the percentage change in the quantity supplied equals the percentage change in price, the supply is

(Multiple Choice)

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Question 169

When income increases by 6 percent, the demand for potatoes decreases by 2 percent. The income elasticity of demand for potatoes equals

(Multiple Choice)

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Question 170

Pizza Hut lowers the price of its pizza. The price elasticity of demand for Pizza Hut pizza equals 0.3. What happens to the Pizza Hut's total revenue?

(Multiple Choice)

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Question 171

What is measured by the price elasticity of supply?

(Multiple Choice)

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Question 172

The cross elasticity of demand for strawberry jelly and grape jelly is likely to be

(Multiple Choice)

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Question 173

For a good such as a large screen, HD television set, the income elasticity would likely be

(Multiple Choice)

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Question 174

After long hair for men became popular, barbers found that their incomes fell. In an attempt to boost their incomes, many barbers raised the price of a haircut and yet their total revenue fell even more. What can explain this result?

(Multiple Choice)

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Question 175

A 10 percent increase in income brings about a 15 percent decrease in the demand for a good. What is the income elasticity of demand and is the good a normal good or an inferior good?

(Essay)

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Question 176

The figure above shows the demand curve for Starbucks latte. -In the figure above, the demand is unit elastic

(Multiple Choice)

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Question 177

At the midpoint of a linear, downward-sloping demand curve, the price elasticity of demand is

(Multiple Choice)

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Question 178

When the price of a burrito increases from $2 to $4, the quantity demanded decreases from 50 to 40. Using the midpoint method, the price elasticity of demand equals

(Multiple Choice)

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Question 179

Along a linear (straight-line)downward-sloping demand curve, demand is unit elastic at

(Multiple Choice)

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Question 180

Showing 161 - 180 of 335

If you spend a large portion of your income on a good,

-The demand curve shown in the figure above is ________ over the price range from $95 to $105 per unit.

Price (dollars per cake) Quantity demanded (gallons of ice cream per week) 2 10 4 6 -Based on data in the table above, use the midpoint method to determine the cross elasticity of demand for ice cream and cake.

Which of the following explains why supply is more elastic as more time passes?

The figure above shows the demand curve for Starbucks latte. -In the figure above, the demand is elastic in the range of prices between

It is very difficult for Gourmet Chocolatier to find inexpensive and available inputs for the business. Because of this, we predict that Gourmet Chocolatier's supply to be

When the percentage change in the quantity supplied equals the percentage change in price, the supply is

When income increases by 6 percent, the demand for potatoes decreases by 2 percent. The income elasticity of demand for potatoes equals

Pizza Hut lowers the price of its pizza. The price elasticity of demand for Pizza Hut pizza equals 0.3. What happens to the Pizza Hut's total revenue?

What is measured by the price elasticity of supply?

The cross elasticity of demand for strawberry jelly and grape jelly is likely to be

For a good such as a large screen, HD television set, the income elasticity would likely be

After long hair for men became popular, barbers found that their incomes fell. In an attempt to boost their incomes, many barbers raised the price of a haircut and yet their total revenue fell even more. What can explain this result?

A 10 percent increase in income brings about a 15 percent decrease in the demand for a good. What is the income elasticity of demand and is the good a normal good or an inferior good?

The figure above shows the demand curve for Starbucks latte. -In the figure above, the demand is unit elastic

At the midpoint of a linear, downward-sloping demand curve, the price elasticity of demand is

When the price of a burrito increases from $2 to $4, the quantity demanded decreases from 50 to 40. Using the midpoint method, the price elasticity of demand equals

Along a linear (straight-line)downward-sloping demand curve, demand is unit elastic at

Getting Started

The Us and Global Economies

The Economic Problem

Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Global Markets in Action

Externalities: Pollution, Education, and Health Care

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Gdp: a Measure of Total Production and Income

Jobs and Unemployment

The Cpi and the Cost of Living

Potential Gdp and Economic Growth

Money and the Monetary System

Aggregate Supply and Aggregate Demand

Fiscal Policy and Monetary Policy

Filters