Table 5.2 $\begin{array}{c} \begin{array}{lll} \\ \text {Old}\\ \text {New} \end{array} \begin{array}{lll} \text {Quantity}\\ \hline 20\\ 10 \end{array} \begin{array}{lll} \text{ Price}\\ \hline \$ 40 \\ \$ 60 \end{array} \end{array}$ -Refer to Table 5.2,which shows the price and quantity combinations for a product.The demand for the good is _____,and an increase in the price of the product from $40 to $60 per unit will _____ total revenue.

A) unit elastic; increase B) elastic; decrease C) unit elastic; not change D) inelastic; increase. E) elastic; decrease. A) unit elastic; increase B) elastic; decrease C) unit elastic; not change D) inelastic; increase. E) elastic; decrease.

Exam 5: Elasticity of Demand and Supply

Table 5.7 Quantity Income Good A 100 \ 1,000 120 \ 2,000 Good B 200 \ 20 140 \ 35 -Refer to Table 5.7,which shows the change in the quantity demanded for Good A and Good B as a result of a change in income.Use the information to calculate the value of the income elasticity of demand for Good B.

(Multiple Choice)

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Question 21

The cross-price elasticity of demand between Coca-Cola and Pepsi is likely to be _____

(Multiple Choice)

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Question 22

If the price elasticity of demand for a product is 5,and prices decrease 10 percent then demand will _____

(Multiple Choice)

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Question 23

If Joe says that nothing comes close to Pepsi,his demand for Pepsi is likely to be _____

(Multiple Choice)

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Question 24

Which of the following is a possible reason for the price elasticity of demand for cigarettes being large for young smokers?

(Multiple Choice)

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Question 25

A university administration's decision to raise tuition in order to increase revenue will be successful if _____

(Multiple Choice)

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Question 26

If the price of a product increases from $15 to $17 per unit and the quantity demanded decreases from 75 to 50 units,then the price elasticity of demand for this product is _____

(Multiple Choice)

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Question 27

All other things constant,if a _ proportion of a consumer's budget is spent on a good,the demand for the good will be more _ and the consumer will purchase a substitute instead.

(Multiple Choice)

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Question 28

When the cross-price elasticity of demand between two products is positive,the two goods are said to be substitutes.

(True/False)

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Question 29

The price elasticity of demand for milk when quantity is measured in gallons will be _____ the price elasticity when quantity is measured in quarts.

(Multiple Choice)

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Question 30

The important aspect measured by elasticity is _____

(Multiple Choice)

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Question 31

The price elasticity of demand is typically referred to as a/an _____

(Multiple Choice)

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Question 32

If quantity decreases by 15 percent when prices decrease 5 percent then elasticity for this product is _____

(Multiple Choice)

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Question 33

Exhibit 5.7 -Refer to Exhibit 5.7,which shows four demand curves.The demand curve that best illustrates how consumers will respond to a change in price over the long run is _____

(Multiple Choice)

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Question 34

Which of the following statements is false?

(Multiple Choice)

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Question 35

A successful advertising campaign is most likely to _____

(Multiple Choice)

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Question 36

Necessities and luxuries are both types of normal goods.

(True/False)

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Question 37

Table 5.2 Old New Quantity 20 10 Price \ 40 \ 60 -Refer to Table 5.2,which shows the price and quantity combinations for a product.The demand for the good is _,and an increase in the price of the product from $40 to $60 per unit will _ total revenue.

(Multiple Choice)

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Question 38

A good that takes up a very large percentage of a consumer's budget will tend to have _____

(Multiple Choice)

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Question 39

As the economy recovers from a recession,we should expect that the _____

(Multiple Choice)

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Question 40

Showing 21 - 40 of 200

Exam 5: Elasticity of Demand and Supply

Table 5.7 Quantity Income Good A 100 \ 1,000 120 \ 2,000 Good B 200 \ 20 140 \ 35 -Refer to Table 5.7,which shows the change in the quantity demanded for Good A and Good B as a result of a change in income.Use the information to calculate the value of the income elasticity of demand for Good B.

The cross-price elasticity of demand between Coca-Cola and Pepsi is likely to be _____

If the price elasticity of demand for a product is 5,and prices decrease 10 percent then demand will _____

If Joe says that nothing comes close to Pepsi,his demand for Pepsi is likely to be _____

Which of the following is a possible reason for the price elasticity of demand for cigarettes being large for young smokers?

A university administration's decision to raise tuition in order to increase revenue will be successful if _____

If the price of a product increases from $15 to $17 per unit and the quantity demanded decreases from 75 to 50 units,then the price elasticity of demand for this product is _____

All other things constant,if a _____ proportion of a consumer's budget is spent on a good,the demand for the good will be more _____ and the consumer will purchase a substitute instead.

When the cross-price elasticity of demand between two products is positive,the two goods are said to be substitutes.

The price elasticity of demand for milk when quantity is measured in gallons will be _____ the price elasticity when quantity is measured in quarts.

The important aspect measured by elasticity is _____

The price elasticity of demand is typically referred to as a/an _____

If quantity decreases by 15 percent when prices decrease 5 percent then elasticity for this product is _____

Exhibit 5.7 -Refer to Exhibit 5.7,which shows four demand curves.The demand curve that best illustrates how consumers will respond to a change in price over the long run is _____

Which of the following statements is false?

A successful advertising campaign is most likely to _____

Necessities and luxuries are both types of normal goods.

Table 5.2 Old New Quantity 20 10 Price \ 40 \ 60 -Refer to Table 5.2,which shows the price and quantity combinations for a product.The demand for the good is _____,and an increase in the price of the product from $40 to $60 per unit will _____ total revenue.

A good that takes up a very large percentage of a consumer's budget will tend to have _____

As the economy recovers from a recession,we should expect that the _____

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All other things constant,if a _ proportion of a consumer's budget is spent on a good,the demand for the good will be more _ and the consumer will purchase a substitute instead.

Table 5.2 Old New Quantity 20 10 Price \ 40 \ 60 -Refer to Table 5.2,which shows the price and quantity combinations for a product.The demand for the good is _,and an increase in the price of the product from $40 to $60 per unit will _ total revenue.