Question 1

If the price of orange juice rises 10%,and as a result the quantity demanded falls by 8%,the price elasticity of demand for orange juice is

Accepted Answer

A)  -1.25. 
B)  elastic. 
C)  Both A and B above. 
D)  Neither A nor B above. 
A)  -1.25. 
B)  elastic. 
C)  Both A and B above. 
D)  Neither A nor B above.

Question 2

A normal good has a ________ income elasticity of demand and quantity demanded ________ as income rises.

Accepted Answer

A)  negative; increases 
B)  negative; decreases 
C)  positive; increases 
D)  positive; decreases 
A)  negative; increases 
B)  negative; decreases 
C)  positive; increases 
D)  positive; decreases

Question 3

If the demand curve for comic books is expressed as Q = 10,000 * p⁻¹,then demand has a unitary elasticity

Accepted Answer

A)  only when p = 10,000. 
B)  only when p = 100. 
C)  always. 
D)  never. 
A)  only when p = 10,000. 
B)  only when p = 100. 
C)  always. 
D)  never.

Question 4

Forecasts based on an economic theory as opposed to historical data are called

Accepted Answer

A)  causal econometric forecasts. 
B)  non-time-series forecasts. 
C)  dummy forecasts. 
D)  explanatory variable forecasts. 
A)  causal econometric forecasts. 
B)  non-time-series forecasts. 
C)  dummy forecasts. 
D)  explanatory variable forecasts.

If the price of orange juice rises 10%,and as a result the quantity demanded falls by 8%,the price elasticity of demand for orange juice is

A normal good has a income elasticity of demand and quantity demanded as income rises.

If the demand curve for comic books is expressed as Q = 10,000 * p⁻¹,then demand has a unitary elasticity

Forecasts based on an economic theory as opposed to historical data are called

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 the price of orange juice rises 10%,and as a result the quantity demanded falls by 8%,the price elasticity of demand for orange juice is

A normal good has a ________ income elasticity of demand and quantity demanded ________ as income rises.

If the demand curve for comic books is expressed as Q = 10,000 * p⁻¹,then demand has a unitary elasticity

Forecasts based on an economic theory as opposed to historical data are called

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

A normal good has a income elasticity of demand and quantity demanded as income rises.