Question 1

If a good has an income elasticity of 0.18,then it is:

Accepted Answer

A)  a normal good, and a necessity. 
B)  a normal good, and a luxury good. 
C)  an inferior good, and a necessity. 
D)  an inferior good, and a luxury. 
A)  a normal good, and a necessity. 
B)  a normal good, and a luxury good. 
C)  an inferior good, and a necessity. 
D)  an inferior good, and a luxury.

Question 2

In general,the more elastic a demand curve is the:

Accepted Answer

A)  flatter it will be. 
B)  steeper it will be. 
C)  more bowed-in it will be. 
D)  faster it will shift when price changes. 
A)  flatter it will be. 
B)  steeper it will be. 
C)  more bowed-in it will be. 
D)  faster it will shift when price changes.

Question 3

Suppose when the price of pizza goes from $8 to $12 per pie,production increases from 2,500 pies to 4,000 pies per month.Using the mid-point method,the percentage change in price is:

Accepted Answer

A)  40 percent 
B)  46 percent 
C)  1.31 
D)  0.35 
A)  40 percent 
B)  46 percent 
C)  1.31 
D)  0.35

Question 4

Coke and Pepsi probably have a:

Accepted Answer

A)  less elastic cross-price elasticity of demand than do Coke and bananas. 
B)  cross-price elasticity of demand that is smaller than do Coke and bananas. 
C)  negative cross-price elasticity of demand. 
D)  more elastic cross-price elasticity of demand than do Coke and bananas. 
A)  less elastic cross-price elasticity of demand than do Coke and bananas. 
B)  cross-price elasticity of demand that is smaller than do Coke and bananas. 
C)  negative cross-price elasticity of demand. 
D)  more elastic cross-price elasticity of demand than do Coke and bananas.

Question 5

When the quantity effect outweighs the price effect:

Accepted Answer

A)  a price increase will cause a decrease in total revenue. 
B)  a price increase will cause an increase in total revenue. 
C)  a price decrease will cause a decrease in total revenue. 
D)  None of these is true. 
A)  a price increase will cause a decrease in total revenue. 
B)  a price increase will cause an increase in total revenue. 
C)  a price decrease will cause a decrease in total revenue. 
D)  None of these is true.

Question 6

If the price of a cup of Dunkin' Donuts coffee increases while the price of a Starbucks latte is unchanged,we expect the number of lattes purchased at Starbucks to:

Accepted Answer

A)  increase as some people switch from Dunkin' Donuts coffee to Starbucks lattes. 
B)  decrease as some people switch from Dunkin' Donuts coffee to the Starbucks lattes. 
C)  decrease as some people have less money to spend on caffeinated beverages. 
D)  decrease as some people switch from Starbucks lattes to Dunkin' Donuts coffee. 
A)  increase as some people switch from Dunkin' Donuts coffee to Starbucks lattes. 
B)  decrease as some people switch from Dunkin' Donuts coffee to the Starbucks lattes. 
C)  decrease as some people have less money to spend on caffeinated beverages. 
D)  decrease as some people switch from Starbucks lattes to Dunkin' Donuts coffee.

If a good has an income elasticity of 0.18,then it is:

In general,the more elastic a demand curve is the:

Suppose when the price of pizza goes from $8 to $12 per pie,production increases from 2,500 pies to 4,000 pies per month.Using the mid-point method,the percentage change in price is:

Coke and Pepsi probably have a:

When the quantity effect outweighs the price effect:

If the price of a cup of Dunkin' Donuts coffee increases while the price of a Starbucks latte is unchanged,we expect the number of lattes purchased at Starbucks to:

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Exam 4: Elasticity

If a good has an income elasticity of 0.18,then it is:

In general,the more elastic a demand curve is the:

Suppose when the price of pizza goes from $8 to $12 per pie,production increases from 2,500 pies to 4,000 pies per month.Using the mid-point method,the percentage change in price is:

Coke and Pepsi probably have a:

When the quantity effect outweighs the price effect:

If the price of a cup of Dunkin' Donuts coffee increases while the price of a Starbucks latte is unchanged,we expect the number of lattes purchased at Starbucks to:

Economics and Life

Specialization and Exchange

Markets

Efficiency

Government Intervention Microeconomics

Consumer Behavior

Behavioral Economics: A Closer Look at Decision Making

Game Theory and Strategic Thinking

Information

Time and Uncertainty

The Costs of Production

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

The Factors of Production

International Trade

Externalities

Public Goods and Common Resources

Taxation and the Public Budget

Poverty, Inequality, and Discrimination

Political Choices

Public Policy and Choice Architecture

Filters