A) price per unit times quantity sold. B) price per unit times quantity supplied. C) price per unit times change in quantity sold. D) change in price per unit times quantity sold. A) price per unit times quantity sold. B) price per unit times quantity supplied. C) price per unit times change in quantity sold. D) change in price per unit times quantity sold.

Exam 4: Elasticity: The Responsiveness of Demand and Supply

Assume that the price elasticity of demand for petrol is -0.06. If the government tax causes the price of petrol to increase by 50 per cent, what will be the decrease in the quantity of petrol demanded?

(Multiple Choice)

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Question 21

If you expect the economy is going to boom and average income in the economy will rise in the foreseeable future, the type of firm that would be able to increase its sales if your expectations are met is

(Multiple Choice)

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Question 22

Supply is elastic whenever the elasticity value for supply is positive and greater than 1.

(True/False)

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Question 23

The price elasticity of demand for Stork ice cream is -4. Suppose you're told that following a price increase, quantity demanded fell by 10 per cent. What was the percentage change in price that brought about this change in quantity demanded?

(Multiple Choice)

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Question 24

Which of the following items is likely to have the highest income elasticity of demand?

(Multiple Choice)

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Question 25

What does price elasticity of demand measure? When is demand elastic? Inelastic? Unit elastic?

(Essay)

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Question 26

Assume that a 50 per cent petrol tax led to a large increase in its price and only a small decrease in the quantity of petrol demanded. Economic analysis would lead one to conclude that

(Multiple Choice)

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Question 27

If the cross-price elasticity of demand for goods A and B is zero, this means the two goods are unrelated.

(True/False)

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Question 28

Bringing oil to the market is a relatively long and costly process. The whole process from exploration to pumping significant amounts of oil can take years. What does this indicate about the price elasticity of supply for oil?

(Multiple Choice)

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Question 29

-Refer to Figure 4-8. What is the value of the price elasticity of supply between g and h?

(Multiple Choice)

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Question 30

When the price of tortilla chips rose by 10 per cent, the quantity of tortilla chips sold fell 4 per cent. This indicates that the demand for tortilla chips is

(Multiple Choice)

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Question 31

If the cross-price elasticity of demand between beer and wine is 0.31, then beer and wine are

(Multiple Choice)

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Question 32

When demand is unit-elastic, a change in price causes total revenue to stay the same because

(Multiple Choice)

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Question 33

Studies show that the income elasticity of demand for wine is approximately five. What does this mean?

(Multiple Choice)

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Question 34

Economists use the concept of ________ to measure how one economic variable, such as quantity, responds to a change in another economic variable, such as price.

(Multiple Choice)

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Question 35

A private school is considering increasing its tuition to raise revenue. If the school believes that raising tuition will increase revenue,

(Multiple Choice)

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Question 36

If a firm wanted to know whether the demand for its product was elastic, unit-elastic, or inelastic, then the firm could

(Multiple Choice)

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Question 37

Which of the following statements is true about the price elasticity of demand along a downward-sloping linear demand curve?

(Multiple Choice)

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Question 38

The price elasticity of demand for beef is estimated to be 0.60 (in absolute value). This means that a 20 per cent increase in the price of beef, holding every thing else constant, will cause the quantity of beef demanded to

(Multiple Choice)

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Question 39

Total revenue equals

(Multiple Choice)

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Question 40

Showing 21 - 40 of 226

Assume that the price elasticity of demand for petrol is -0.06. If the government tax causes the price of petrol to increase by 50 per cent, what will be the decrease in the quantity of petrol demanded?

If you expect the economy is going to boom and average income in the economy will rise in the foreseeable future, the type of firm that would be able to increase its sales if your expectations are met is

Supply is elastic whenever the elasticity value for supply is positive and greater than 1.

The price elasticity of demand for Stork ice cream is -4. Suppose you're told that following a price increase, quantity demanded fell by 10 per cent. What was the percentage change in price that brought about this change in quantity demanded?

Which of the following items is likely to have the highest income elasticity of demand?

What does price elasticity of demand measure? When is demand elastic? Inelastic? Unit elastic?

Assume that a 50 per cent petrol tax led to a large increase in its price and only a small decrease in the quantity of petrol demanded. Economic analysis would lead one to conclude that

If the cross-price elasticity of demand for goods A and B is zero, this means the two goods are unrelated.

Bringing oil to the market is a relatively long and costly process. The whole process from exploration to pumping significant amounts of oil can take years. What does this indicate about the price elasticity of supply for oil?

-Refer to Figure 4-8. What is the value of the price elasticity of supply between g and h?

When the price of tortilla chips rose by 10 per cent, the quantity of tortilla chips sold fell 4 per cent. This indicates that the demand for tortilla chips is

If the cross-price elasticity of demand between beer and wine is 0.31, then beer and wine are

When demand is unit-elastic, a change in price causes total revenue to stay the same because

Studies show that the income elasticity of demand for wine is approximately five. What does this mean?

Economists use the concept of ________ to measure how one economic variable, such as quantity, responds to a change in another economic variable, such as price.

A private school is considering increasing its tuition to raise revenue. If the school believes that raising tuition will increase revenue,

If a firm wanted to know whether the demand for its product was elastic, unit-elastic, or inelastic, then the firm could

Which of the following statements is true about the price elasticity of demand along a downward-sloping linear demand curve?

The price elasticity of demand for beef is estimated to be 0.60 (in absolute value). This means that a 20 per cent increase in the price of beef, holding every thing else constant, will cause the quantity of beef demanded to

Total revenue equals

Economics Foundations and Models

Choices and Trade - Offs in the Market

Where Prices Come Frome : The Interaction of Demand and Supply

Economic Efficiency , Government Price Setting and Taxes

Concumer Choice and Behavioural Economics

Technology , Production and Costs

Firms in Perfectly Compitive Markets

Monopoly Markets

Monopolistic Competition : The Competitive Model in More Realistic Setting

Oligopoly : Firms in Less Competitve Markets

The Market for Labour and Other Factors of Production

International Trade

Government Intervention in the Market

Externalities , Environmental Policy and Public Goods

The Distribution of Income and Social Policy

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