Exam 3: Applying the Supply-And-Demand Model

If the demand curve for a good is unit price elastic and the supply curve is perfectly price elastic,a $1 specific tax imposed on the sellers of this good will

(Multiple Choice)

4.9/5

(37)

Question 81

-The above figure shows the demand curve for crude oil.If the market price is $10 a barrel,what is the price elasticity of demand?

(Multiple Choice)

4.8/5

(29)

Question 82

Because demand curves slope downward according to the Law of Demand,the price elasticity of demand is a negative number.

(True/False)

4.7/5

(31)

Question 83

In the mid-1980s,the salaries of accounting professors with Ph.D.s increased dramatically.This resulted in an increase in enrollments in Ph.D.accounting programs.Since a Ph.D.degree in accounting may take at least four years to complete,the short-run elasticity of supply of accounting professors is

(Multiple Choice)

4.9/5

(30)

Question 84

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

(Multiple Choice)

4.8/5

(32)

Question 85

A horizontal demand curve for a good could arise because consumers

(Multiple Choice)

4.9/5

(35)

Question 86

As the supply curve shifts to the right,the increase in quantity demanded will not depend on the shape of the demand curve.

(True/False)

4.9/5

(41)

Question 87

In the case of a linear demand curve,demand becomes more price elastic as price increases.

(True/False)

4.8/5

(37)

Question 88

The price elasticity of supply when the supply curve is Q = 5 is

(Multiple Choice)

4.9/5

(43)

Question 89

-The above figure shows the demand curve for crude oil.Suppose the price is currently $7.A supply shock suddenly raises the price to $9.What happens with the crude oil sales revenue?

(Multiple Choice)

4.8/5

(35)

Question 90

The short-run elasticity of supply is less than the long-run elasticity of supply

(Multiple Choice)

4.9/5

(30)

Question 91

If the supply curve for orange juice is estimated to be Q = 40 + 2p,then,at a price of $2,the price elasticity of supply is

(Multiple Choice)

4.7/5

(49)

Question 92

Suppose the supply curve and the demand curve both have unitary elasticity at all prices.The price increase to consumers resulting from a specific tax of $1 imposed on sellers will be

(Multiple Choice)

4.8/5

(45)

Question 93

Suppose the market for grass seed can be expressed as Demand: Q^D = 100 - 2p Supply: Q^S = 3p If government imposes a $5 specific tax to be collected from sellers,what is the price consumers will pay? How much tax revenue is collected? What fraction is paid by sellers?

(Essay)

4.8/5

(41)

Question 94

A vertical demand curve results in

(Multiple Choice)

4.8/5

(35)

Question 95

Suppose that a specific tax of $3 is imposed on producers of bread.The bread market supply is Qs = 10 + 0.5P and the bread market demand is Qd = 100-P.What is the producers' tax burden?

(Multiple Choice)

4.8/5

(33)

Question 96

The cross price elasticity of demand for a good x is the percentage change in the quantity demanded of good x in response to a given percentage change in

(Multiple Choice)

4.9/5

(40)

Question 97

The cross price elasticity of demand between two goods will be positive if

(Multiple Choice)

4.8/5

(42)

Question 98

The duration of the "short-run"

(Multiple Choice)

4.9/5

(36)

Question 99

Suppose the market for grass seed can be expressed as Demand: Q^D = 100 - 2p Supply: Q^S = 3p At the market equilibrium,calculate the price elasticities of supply and demand.Use these numbers to predict the change in price resulting from a specific tax.

(Essay)

4.8/5

(40)

Question 100

Showing 81 - 100 of 124

If the demand curve for a good is unit price elastic and the supply curve is perfectly price elastic,a $1 specific tax imposed on the sellers of this good will

-The above figure shows the demand curve for crude oil.If the market price is $10 a barrel,what is the price elasticity of demand?

Because demand curves slope downward according to the Law of Demand,the price elasticity of demand is a negative number.

In the mid-1980s,the salaries of accounting professors with Ph.D.s increased dramatically.This resulted in an increase in enrollments in Ph.D.accounting programs.Since a Ph.D.degree in accounting may take at least four years to complete,the short-run elasticity of supply of accounting professors is

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 horizontal demand curve for a good could arise because consumers

As the supply curve shifts to the right,the increase in quantity demanded will not depend on the shape of the demand curve.

In the case of a linear demand curve,demand becomes more price elastic as price increases.

The price elasticity of supply when the supply curve is Q = 5 is

-The above figure shows the demand curve for crude oil.Suppose the price is currently $7.A supply shock suddenly raises the price to $9.What happens with the crude oil sales revenue?

The short-run elasticity of supply is less than the long-run elasticity of supply

If the supply curve for orange juice is estimated to be Q = 40 + 2p,then,at a price of $2,the price elasticity of supply is

Suppose the supply curve and the demand curve both have unitary elasticity at all prices.The price increase to consumers resulting from a specific tax of $1 imposed on sellers will be

Suppose the market for grass seed can be expressed as Demand: Q^D = 100 - 2p Supply: Q^S = 3p If government imposes a $5 specific tax to be collected from sellers,what is the price consumers will pay? How much tax revenue is collected? What fraction is paid by sellers?

A vertical demand curve results in

Suppose that a specific tax of $3 is imposed on producers of bread.The bread market supply is Qs = 10 + 0.5P and the bread market demand is Qd = 100-P.What is the producers' tax burden?

The cross price elasticity of demand for a good x is the percentage change in the quantity demanded of good x in response to a given percentage change in

The cross price elasticity of demand between two goods will be positive if

The duration of the "short-run"

Suppose the market for grass seed can be expressed as Demand: Q^D = 100 - 2p Supply: Q^S = 3p At the market equilibrium,calculate the price elasticities of supply and demand.Use these numbers to predict the change in price resulting from a specific tax.

Introduction

Supply and Demand

Consumer Choice

Applying Consumer Theory

Firms and Production

Costs

Competitive Firms and Markets

Applying the Competitive Model

General Equilibrium and Economic Welfare

Monopoly

Pricing and Advertising

Oligopoly and Monopolistic Competition

Game Theory

Factor Markets

Interest Rates, Investments, and Capital Markets

Uncertainty

Externalities, Open-Access, and Public Goods

Asymmetric Information

Contracts and Moral Hazards

Filters

Exam 3: Applying the Supply-And-Demand Model

If the demand curve for a good is unit price elastic and the supply curve is perfectly price elastic,a $1 specific tax imposed on the sellers of this good will

-The above figure shows the demand curve for crude oil.If the market price is $10 a barrel,what is the price elasticity of demand?

Because demand curves slope downward according to the Law of Demand,the price elasticity of demand is a negative number.

In the mid-1980s,the salaries of accounting professors with Ph.D.s increased dramatically.This resulted in an increase in enrollments in Ph.D.accounting programs.Since a Ph.D.degree in accounting may take at least four years to complete,the short-run elasticity of supply of accounting professors is

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 horizontal demand curve for a good could arise because consumers

As the supply curve shifts to the right,the increase in quantity demanded will not depend on the shape of the demand curve.

In the case of a linear demand curve,demand becomes more price elastic as price increases.

The price elasticity of supply when the supply curve is Q = 5 is

-The above figure shows the demand curve for crude oil.Suppose the price is currently $7.A supply shock suddenly raises the price to $9.What happens with the crude oil sales revenue?

The short-run elasticity of supply is less than the long-run elasticity of supply

If the supply curve for orange juice is estimated to be Q = 40 + 2p,then,at a price of $2,the price elasticity of supply is

Suppose the supply curve and the demand curve both have unitary elasticity at all prices.The price increase to consumers resulting from a specific tax of $1 imposed on sellers will be

Suppose the market for grass seed can be expressed as Demand: QD = 100 - 2p Supply: QS = 3p If government imposes a $5 specific tax to be collected from sellers,what is the price consumers will pay? How much tax revenue is collected? What fraction is paid by sellers?

A vertical demand curve results in

Suppose that a specific tax of $3 is imposed on producers of bread.The bread market supply is Qs = 10 + 0.5P and the bread market demand is Qd = 100-P.What is the producers' tax burden?

The cross price elasticity of demand for a good x is the percentage change in the quantity demanded of good x in response to a given percentage change in

The cross price elasticity of demand between two goods will be positive if

The duration of the "short-run"

Suppose the market for grass seed can be expressed as Demand: QD = 100 - 2p Supply: QS = 3p At the market equilibrium,calculate the price elasticities of supply and demand.Use these numbers to predict the change in price resulting from a specific tax.

Introduction

Supply and Demand

Consumer Choice

Applying Consumer Theory

Firms and Production

Costs

Competitive Firms and Markets

Applying the Competitive Model

General Equilibrium and Economic Welfare

Monopoly

Pricing and Advertising

Oligopoly and Monopolistic Competition

Game Theory

Factor Markets

Interest Rates, Investments, and Capital Markets

Uncertainty

Externalities, Open-Access, and Public Goods

Asymmetric Information

Contracts and Moral Hazards

Filters

Suppose the market for grass seed can be expressed as Demand: Q^D = 100 - 2p Supply: Q^S = 3p If government imposes a $5 specific tax to be collected from sellers,what is the price consumers will pay? How much tax revenue is collected? What fraction is paid by sellers?

Suppose the market for grass seed can be expressed as Demand: Q^D = 100 - 2p Supply: Q^S = 3p At the market equilibrium,calculate the price elasticities of supply and demand.Use these numbers to predict the change in price resulting from a specific tax.