Question 1

What is an optimal decision?

Accepted Answer

An optimal decision is one that best ser

Question 2

Demand elasticity equals quantity times price.

Accepted Answer

A) True 
 B)False

Question 3

If the price elasticity of demand for radios is 2.5 (dropping the minus sign),then a 50 percent reduction in the price of radios will lead to

Accepted Answer

A) the sale of 200 additional radios. 
B) the sale of 125 percent more radios than before. 
C) the sale of 150 percent more radios than before. 
D) the sale of 25 percent more radios than before. 
A) the sale of 200 additional radios. 
B) the sale of 125 percent more radios than before. 
C) the sale of 150 percent more radios than before. 
D) the sale of 25 percent more radios than before.

Question 4

If demand is elastic,an increase in price will increase total revenue.

Accepted Answer

A) True 
 B)False

Question 5

The cross elasticity between two goods has been measured at - 1.2.How are the goods related? Explain.Give an example of goods for which this might be a reasonable measure of cross elasticity.

Accepted Answer

The goods are complements.An increase in

Question 6

A fall in the price of a competing product will produce an outward shift in the demand curve for most products.

Accepted Answer

A) True 
 B)False

Question 7

The demand for Exxon gasoline is ____ the demand for all gasoline.

Accepted Answer

A) exactly as elastic as, and of a different slope from 
B) more elastic than 
C) less elastic than 
D) exactly as elastic and of a different slope from 
A) exactly as elastic as, and of a different slope from 
B) more elastic than 
C) less elastic than 
D) exactly as elastic and of a different slope from

What is an optimal decision?

Demand elasticity equals quantity times price.

If the price elasticity of demand for radios is 2.5 (dropping the minus sign),then a 50 percent reduction in the price of radios will lead to

If demand is elastic,an increase in price will increase total revenue.

The cross elasticity between two goods has been measured at - 1.2.How are the goods related? Explain.Give an example of goods for which this might be a reasonable measure of cross elasticity.

A fall in the price of a competing product will produce an outward shift in the demand curve for most products.

The demand for Exxon gasoline is ____ the demand for all gasoline.

What Is Economics

The Economy: Myth and Reality

The Fundamental Economic Problem: Scarcity and Choice

Supply and Demand: An Initial Look

Consumer Choice: Individual and Market Demand

Production,Inputs,and Cost: Building Blocks for Supply Analysis

Output,Price,and Profit: The Importance of Marginal Analysis

Securities: Business Finance,and the Economy: The Tail That Wags the Dog

The Firm and the Industry Under Perfect Competition

Monopoly

Between Competition and Monopoly

Limiting Market Power: Regulation and Antitrust

The Case for Free Markets I: the Price System

The Shortcomings of Free Markets

The Markets Prime Achievement: Innovation and Growth

Externalities, the Environment, and Natural Resources

Taxation and Resource Allocation

Pricing the Factors of Production

Labor and Entrepreneurship: The Human Inputs

Poverty, Inequality, and Discrimination

International Trade and Comparative Advantage

Filters

Exam 6: Demand and Elasticity

What is an optimal decision?

Demand elasticity equals quantity times price.

If the price elasticity of demand for radios is 2.5 (dropping the minus sign),then a 50 percent reduction in the price of radios will lead to

If demand is elastic,an increase in price will increase total revenue.

The cross elasticity between two goods has been measured at - 1.2.How are the goods related? Explain.Give an example of goods for which this might be a reasonable measure of cross elasticity.

A fall in the price of a competing product will produce an outward shift in the demand curve for most products.

The demand for Exxon gasoline is ____ the demand for all gasoline.

What Is Economics

The Economy: Myth and Reality

The Fundamental Economic Problem: Scarcity and Choice

Supply and Demand: An Initial Look

Consumer Choice: Individual and Market Demand

Production,Inputs,and Cost: Building Blocks for Supply Analysis

Output,Price,and Profit: The Importance of Marginal Analysis

Securities: Business Finance,and the Economy: The Tail That Wags the Dog

The Firm and the Industry Under Perfect Competition

Monopoly

Between Competition and Monopoly

Limiting Market Power: Regulation and Antitrust

The Case for Free Markets I: the Price System

The Shortcomings of Free Markets

The Markets Prime Achievement: Innovation and Growth

Externalities, the Environment, and Natural Resources

Taxation and Resource Allocation

Pricing the Factors of Production

Labor and Entrepreneurship: The Human Inputs

Poverty, Inequality, and Discrimination

International Trade and Comparative Advantage

Filters