Question 1

Which of the following goods would you expect to have the most inelastic demand?
 Why?
a.Swiss cheese
b.Cheese
c.Dairy products

Accepted Answer

Dairy products are expected to have the

Question 2

Suppose you are the manager of a home-building company and the government is considering eliminating the tax deductibility of mortgage interest payments.A typical consumer's marginal tax rate is 25 percent,and the elasticity of demand for new homes is −1.5.Your boss wants to know the impact of the proposed government policy on your business.What do you tell him?

Accepted Answer

The price is no longer reduced by 25 per

Question 3

Which of the following can be used to quantify the overall statistical significance of a regression?

Accepted Answer

A)  t-statistic 
B)  F-statistic 
C)  R-square 
D)  The F-statistic and R-square 
A)  t-statistic 
B)  F-statistic 
C)  R-square 
D)  The F-statistic and R-square

Question 4

Which of the following is NOT an important factor that affects the magnitude of the own price elasticity of a good?

Accepted Answer

A)  Available substitutes 
B)  Supply of the good 
C)  Time 
D)  Expenditure share 
A)  Available substitutes 
B)  Supply of the good 
C)  Time 
D)  Expenditure share

Question 5

The demand curve for a good is horizontal when it is:

Accepted Answer

A)  a perfectly inelastic good. 
B)  a unitary elastic good. 
C)  a perfectly elastic good. 
D)  an inferior good. 
A)  a perfectly inelastic good. 
B)  a unitary elastic good. 
C)  a perfectly elastic good. 
D)  an inferior good.

Question 6

Suppose demand is given by Q xd = 50 − 4Px + 6Py + Ax,where Px = $4,Py = $2,and Ax = $50.What is the advertising elasticity of demand for good x?

Accepted Answer

A)  1.12 
B)  0.38 
C)  1.92 
D)  0.52 
A)  1.12 
B)  0.38 
C)  1.92 
D)  0.52

Question 7

Suppose the demand function is given by Qxd = 8Px0.5 Py0.25 M0.12 H.Then the cross-price elasticity between goods x and y is:

Accepted Answer

A)  4.00. 
B)  0.25. 
C)  0.50. 
D)  8.33. 
A)  4.00. 
B)  0.25. 
C)  0.50. 
D)  8.33.

Which of the following goods would you expect to have the most inelastic demand? Why? a.Swiss cheese b.Cheese c.Dairy products

Which of the following can be used to quantify the overall statistical significance of a regression?

Which of the following is NOT an important factor that affects the magnitude of the own price elasticity of a good?

The demand curve for a good is horizontal when it is:

Suppose demand is given by Q _x^d = 50 − 4P_x + 6P_y + A_x,where P_x = $4,P_y = $2,and A_x = $50.What is the advertising elasticity of demand for good x?

Suppose the demand function is given by Q_x^d = 8P_x^0.5 P_y^0.25 M^0.12 H.Then the cross-price elasticity between goods x and y is:

The Fundamentals of Managerial Economics

Market Forces: Demand and Supply

The Theory of Individual Behavior

The Production Process and Costs

The Organization of the Firm

The Nature of Industry

Managing in Competitive, Monopolistic, and Monopolistically Competitive Markets

Basic Oligopoly Models

Game Theory: Inside Oligopoly

Pricing Strategies for Firms With Market Power

The Economics of Information

Advanced Topics in Business Strategy

A Managers Guide to Government in the Marketplace

Filters

Exam 3: Quantitative Demand Analysis

Which of the following goods would you expect to have the most inelastic demand? Why? a.Swiss cheese b.Cheese c.Dairy products

Which of the following can be used to quantify the overall statistical significance of a regression?

Which of the following is NOT an important factor that affects the magnitude of the own price elasticity of a good?

The demand curve for a good is horizontal when it is:

Suppose demand is given by Q xd = 50 − 4Px + 6Py + Ax,where Px = $4,Py = $2,and Ax = $50.What is the advertising elasticity of demand for good x?

Suppose the demand function is given by Qxd = 8Px0.5 Py0.25 M0.12 H.Then the cross-price elasticity between goods x and y is:

The Fundamentals of Managerial Economics

Market Forces: Demand and Supply

The Theory of Individual Behavior

The Production Process and Costs

The Organization of the Firm

The Nature of Industry

Managing in Competitive, Monopolistic, and Monopolistically Competitive Markets

Basic Oligopoly Models

Game Theory: Inside Oligopoly

Pricing Strategies for Firms With Market Power

The Economics of Information

Advanced Topics in Business Strategy

A Managers Guide to Government in the Marketplace

Filters

Suppose demand is given by Q _x^d = 50 − 4P_x + 6P_y + A_x,where P_x = $4,P_y = $2,and A_x = $50.What is the advertising elasticity of demand for good x?

Suppose the demand function is given by Q_x^d = 8P_x^0.5 P_y^0.25 M^0.12 H.Then the cross-price elasticity between goods x and y is: