Exam 6: Simple Pricing

As the price of video games is raised from $40 to $45,their quantity demanded fell from 1.5 million copies to 1.2 million copies.The elasticity of demand of video games is:

Use the following information to answer the next two questions: Cigarettes - Price Elasticity of demand = -0.67 Alcohol - Price elasticity of demand=-1.00 Sodas - Price elasticity of demand=-1.28 -If the government could raise taxes on one good,which product should the government increase tax rates in order to raise tax revenue?

As the number of substitutes for a good increases,its own-price elasticity becomes more

If your income goes up by 2% and,in response,the quantity demanded of good x falls by 3%,the good x can be considered

A product can be classified to be an inferior good if an increase in the income of buyers causes

Assume Dell and Toshiba computers are substitutes in consumption;if the price of dell computers increases we would expect to see

What is the most likely effect of the development of XBOX with DVD capabilities on the DVD player industry?

As the price of dvds is raised from $3 to $5,their quantity demanded fell from 200,000 to 180,000.The elasticity of demand of dvds is:

The price elasticity of demand for a printer is estimated to be 1 no matter what the price or quantity demanded.An increase in price by 10% will

Which of the following is false?

Jim saw a decrease in the quantity demanded for his firm's product from 8000 to 6000 units a week when he raised the price of the product from $200 to $250.What is Jim's own price elasticity of demand?

Given that the own-price elasticity of demand for shoes is -2.6,if the price of shoes rises by 8%,what will happen to the quantity of shoes demanded?

The demand for Dell laptops is more price elastic than the demand for laptops as whole.This is best explained by

Jim has estimated elasticity of demand for gasoline to be 0.7 in the short-run and 1.8 in the long run.A decrease in taxes on gasoline would:

If your income goes up by 2% and,in response,the quantity demanded of good x rises by 3%,the income elasticity of demand would be:

What is the most likely effect of the development of cell phones (many use this for time also)on the watch industry?

A demand for a product is more inelastic

If your income goes down by10% and,in response,the quantity demanded of good x falls by 20%,the income elasticity of demand would be:

An economist estimated the cross-price elasticity for peanut butter and jelly to be +1.5.Based on this information,we know the goods are

The demand for insulin will be _________________ than the demand for a Caribbean cruise in general.