Scenario 5.1 The demand for noodles is given by the following equation: Q = 20 - 4P + 0.2I - 2PS1U1B1xS1U1B0.Assume that P = $8,I = 200,and PS1U1B1x S1U1B0= $10. -Given the above equation,the income elasticity of demand for noodles is _____.

A) 5 B) 0.5 C) 2 D) 2.5 E) 1.6 A) 5 B) 0.5 C) 2 D) 2.5 E) 1.6

Exam 5: Elasticity: Demand and Supply

Scenario 5.1 The demand for noodles is given by the following equation: Q = 20 - 4P + 0.2I - 2P_x.Assume that P = $8,I = 200,and P_x= $10. -Given the above equation,the income elasticity of demand for noodles is _____.

(Multiple Choice)

4.8/5

(29)

Question 81

In the long run,the quantity of capital available to a firm is fixed.

(True/False)

4.9/5

(38)

Question 82

Jen considers smoking an inferior good.In other words,for Jen to quit smoking she would require a significant increase in income.

(True/False)

4.8/5

(26)

Question 83

If firms have to change their production techniques in order to change the quantities they supply,they can respond less in a year to a price change than they could in a month.

(True/False)

4.9/5

(24)

Question 84

As the price is raised along a straight-line demand curve,the demand curve becomes more elastic.

(True/False)

4.9/5

(35)

Question 85

The figure given below shows the demand curves for five products: A,B,C,D,andE. Figure 5.1 - Refer to Figure 5.1.The value of the coefficient of price elasticity of demand for E is:

(Multiple Choice)

4.8/5

(32)

Question 86

For a given product,income elasticity of demand relates the percentage change in:

(Multiple Choice)

4.9/5

(37)

Question 87

Demand becomes more elastic as:

(Multiple Choice)

4.9/5

(37)

Question 88

_____ measures the percentage change in quantity demanded caused by a given percentage change in the price of a related good.

(Multiple Choice)

4.9/5

(28)

Question 89

An inferior good or service is any good or service for which:

(Multiple Choice)

4.8/5

(28)

Question 90

In the opinion of many consumers,there are few,if any,substitutes for the popular search engine Google.If Google were to charge consumers for its services,it would face:

(Multiple Choice)

4.8/5

(28)

Question 91

The figure given below shows the demand curves for five products: A,B,C,D,andE. Figure 5.1 - Refer to Figure 5.1.Which of the following is true of the demand curve for A?

(Multiple Choice)

5.0/5

(35)

Question 92

The table below shows the quantities of automobiles,margarine,and coffee purchased by Ted at different levels of income. Table 5.2 - Refer to Table 5.2.What is the income elasticity of demand for automobiles?

(Multiple Choice)

4.8/5

(34)

Question 93

When the price of hot dogs at the supermarket increases,the quantity demanded of hot dog buns declines.This situation describes:

(Multiple Choice)

4.8/5

(35)

Question 94

If a price increase from $20 to $40 causes quantity demanded to decrease from 100 units to 50 units,one can conclude that demand for the product is _____.

(Multiple Choice)

4.9/5

(33)

Question 95

If the percentage change in quantity demanded of a good is greater than the percentage change in price that caused it,then demand for the good is _____.

(Multiple Choice)

4.9/5

(37)

Question 96

If 12 candy bars are demanded at $0.30 each and 4 candy bars are demanded at $0.50 each,what is the elasticity of demand over the price range from $0.30 to $0.50?

(Multiple Choice)

4.8/5

(30)

Question 97

As the price of movie tickets increases,which of the following is most likely to take place?

(Multiple Choice)

4.8/5

(38)

Question 98

Ceteris paribus,if a 20 percent increase in the price of shoes leads to a 10 percent increase in the quantity supplied of shoes,then the price elasticity of supply is equal to _____.

(Multiple Choice)

4.9/5

(34)

Question 99

Assume that as the price of wheat falls from $10 to $8,the quantity demanded of wheat increases from 100 bushels to 150 bushels.This implies the price elasticity of demand for wheat is 0.5.

(True/False)

4.9/5

(31)

Question 100

Showing 81 - 100 of 132

Exam 5: Elasticity: Demand and Supply

Scenario 5.1 The demand for noodles is given by the following equation: Q = 20 - 4P + 0.2I - 2Px.Assume that P = $8,I = 200,and Px = $10. -Given the above equation,the income elasticity of demand for noodles is _____.

In the long run,the quantity of capital available to a firm is fixed.

Jen considers smoking an inferior good.In other words,for Jen to quit smoking she would require a significant increase in income.

If firms have to change their production techniques in order to change the quantities they supply,they can respond less in a year to a price change than they could in a month.

As the price is raised along a straight-line demand curve,the demand curve becomes more elastic.

The figure given below shows the demand curves for five products: A,B,C,D,andE. Figure 5.1 - Refer to Figure 5.1.The value of the coefficient of price elasticity of demand for E is:

For a given product,income elasticity of demand relates the percentage change in:

Demand becomes more elastic as:

_____ measures the percentage change in quantity demanded caused by a given percentage change in the price of a related good.

An inferior good or service is any good or service for which:

In the opinion of many consumers,there are few,if any,substitutes for the popular search engine Google.If Google were to charge consumers for its services,it would face:

The figure given below shows the demand curves for five products: A,B,C,D,andE. Figure 5.1 - Refer to Figure 5.1.Which of the following is true of the demand curve for A?

The table below shows the quantities of automobiles,margarine,and coffee purchased by Ted at different levels of income. Table 5.2 - Refer to Table 5.2.What is the income elasticity of demand for automobiles?

When the price of hot dogs at the supermarket increases,the quantity demanded of hot dog buns declines.This situation describes:

If a price increase from $20 to $40 causes quantity demanded to decrease from 100 units to 50 units,one can conclude that demand for the product is _____.

If the percentage change in quantity demanded of a good is greater than the percentage change in price that caused it,then demand for the good is _____.

If 12 candy bars are demanded at $0.30 each and 4 candy bars are demanded at $0.50 each,what is the elasticity of demand over the price range from $0.30 to $0.50?

As the price of movie tickets increases,which of the following is most likely to take place?

Ceteris paribus,if a 20 percent increase in the price of shoes leads to a 10 percent increase in the quantity supplied of shoes,then the price elasticity of supply is equal to _____.

Assume that as the price of wheat falls from $10 to $8,the quantity demanded of wheat increases from 100 bushels to 150 bushels.This implies the price elasticity of demand for wheat is 0.5.

Economics: The World Around You

Choice, opportunity Costs, and Specialization

Markets, Demand and Supply, and the Price System

The Market System and the Private and Public Sector

Consumer Choice

Supply: The Costs of Doing Business

Profit Maximization

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Antitrust and Regulation

Market Failures, Government Failures, and Rent Seeking

Resource Markets

The Labor Market

Capital Markets

The Land Market and Natural Resources

Aging, Social Security and Health Care

Income Distribution,Poverty and Government Policy

World Trade Equilibrium

International Trade Restrictions

Exchange Rates and Financial Links Between Countries

Filters

Scenario 5.1 The demand for noodles is given by the following equation: Q = 20 - 4P + 0.2I - 2P_x.Assume that P = $8,I = 200,and P_x= $10. -Given the above equation,the income elasticity of demand for noodles is _____.