Exam 6: Elasticity: the Responsiveness of Demand and Supply

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

(Multiple Choice)

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Question 41

The price elasticity of supply is usually a positive number because

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Question 42

In general,a "big ticket item" such as a house or new car will

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Question 43

Which of the following statements is true?

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Question 44

Studies show that the income elasticity of demand for wine is 5.03 and the income elasticity of demand for spirits is 1.21.This indicates that

(Multiple Choice)

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Question 45

Table 6-3 -Refer to Table 6-3.Katie Graham owns a kayak rental service in Santa Barbara.Table 6.3 below shows her estimated demand schedule for kayak rentals per week.She would like to increase her sales revenue by changing the price she charges for rentals.At present she charges $75.Based on the information in the table,Katie

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Question 46

The midpoint formula is used to measure the elasticity of demand between two points on a demand curve

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Question 47

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 48

Since 1950 there has been a substantial increase in wheat production.The increase in production has led to a decrease in the price of wheat because of which of the following factors?

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Question 49

Suppose the absolute value of the price elasticity of demand for basketball game tickets on your campus is greater than 1.Increasing ticket prices will increase the total revenue from ticket sales.

(True/False)

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Question 50

Suppose when Nablom's Bakery raised the price of its breads by 10 percent,the quantity demanded fell by 15 percent.What was the effect on sales revenue?

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Question 51

If a 6 percent increase in income leads to a 4 percent increase in quantity demanded for audio books the income elasticity of demand is

(Multiple Choice)

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Question 52

Figure 6-1 -Refer to Figure 6-1.The section of the demand curve labeled "A" represents

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Question 53

Figure 6-5 -Refer to Figure 6-5.Suppose the diagram shows the supply curves for a product in the short run and in the long run.Which supply curve represents supply in the short run and which curve represents supply in the long run?

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Question 54

Briefly explain the economic concept of elasticity.

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Question 55

Jill Borts believes that the price elasticity of demand for her economics textbook is relatively inelastic.She argues "I was told I had to purchase a book written by Hubbard and O'Brien that is required by my instructor.If I wanted to buy a mystery novel I would have many authors to choose from.Therefore,the demand for mystery novels is more elastic than the demand for my textbook." Is Jill correct?

(Multiple Choice)

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Question 56

If an 8 percent decrease in the price of lobster leads to a 15 percent decrease in the quantity supplied of lobster,then the supply of lobster is

(Multiple Choice)

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Question 57

If a 5 percent increase in income leads to a 10 percent increase in quantity demanded for airline travel,then airline travel is

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Question 58

If the demand for iPods is price elastic,then

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Question 59

Figure 6-2 -Refer to Figure 6-2.As price falls from P_A to P_B,the quantity demanded increases most along D₁; therefore,

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Question 60

Showing 41 - 60 of 150

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

The price elasticity of supply is usually a positive number because

In general,a "big ticket item" such as a house or new car will

Which of the following statements is true?

Studies show that the income elasticity of demand for wine is 5.03 and the income elasticity of demand for spirits is 1.21.This indicates that

The midpoint formula is used to measure the elasticity of demand between two points on a demand curve

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

Since 1950 there has been a substantial increase in wheat production.The increase in production has led to a decrease in the price of wheat because of which of the following factors?

Suppose the absolute value of the price elasticity of demand for basketball game tickets on your campus is greater than 1.Increasing ticket prices will increase the total revenue from ticket sales.

Suppose when Nablom's Bakery raised the price of its breads by 10 percent,the quantity demanded fell by 15 percent.What was the effect on sales revenue?

If a 6 percent increase in income leads to a 4 percent increase in quantity demanded for audio books the income elasticity of demand is

Figure 6-1 -Refer to Figure 6-1.The section of the demand curve labeled "A" represents

Figure 6-5 -Refer to Figure 6-5.Suppose the diagram shows the supply curves for a product in the short run and in the long run.Which supply curve represents supply in the short run and which curve represents supply in the long run?

Briefly explain the economic concept of elasticity.

If an 8 percent decrease in the price of lobster leads to a 15 percent decrease in the quantity supplied of lobster,then the supply of lobster is

If a 5 percent increase in income leads to a 10 percent increase in quantity demanded for airline travel,then airline travel is

If the demand for iPods is price elastic,then

Figure 6-2 -Refer to Figure 6-2.As price falls from P_A to P_B,the quantity demanded increases most along D₁; therefore,

Economics: Foundations and Models

Trade-Offs, comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency, government Price Setting, and Taxes

Externalities, environmental Policy, and Public Goods

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

Consumer Choice and Behavioral Economics

Technology, production, and Costs

Firms in Perfectly Competitive Markets

Monopolistic Competition: the Competitive Model in a More Realistic Setting

Oligopoly: Firms in Less Competitive Markets

Monopoly and Antitrust Policy

Pricing Strategy

The Markets for Labor and Other Factors of Production

Public Choice, taxes, and the Distribution of Income

Filters

Exam 6: Elasticity: the Responsiveness of Demand and Supply

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

The price elasticity of supply is usually a positive number because

In general,a "big ticket item" such as a house or new car will

Which of the following statements is true?

Studies show that the income elasticity of demand for wine is 5.03 and the income elasticity of demand for spirits is 1.21.This indicates that

The midpoint formula is used to measure the elasticity of demand between two points on a demand curve

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

Since 1950 there has been a substantial increase in wheat production.The increase in production has led to a decrease in the price of wheat because of which of the following factors?

Suppose the absolute value of the price elasticity of demand for basketball game tickets on your campus is greater than 1.Increasing ticket prices will increase the total revenue from ticket sales.

Suppose when Nablom's Bakery raised the price of its breads by 10 percent,the quantity demanded fell by 15 percent.What was the effect on sales revenue?

If a 6 percent increase in income leads to a 4 percent increase in quantity demanded for audio books the income elasticity of demand is

Figure 6-1 -Refer to Figure 6-1.The section of the demand curve labeled "A" represents

Figure 6-5 -Refer to Figure 6-5.Suppose the diagram shows the supply curves for a product in the short run and in the long run.Which supply curve represents supply in the short run and which curve represents supply in the long run?

Briefly explain the economic concept of elasticity.

If an 8 percent decrease in the price of lobster leads to a 15 percent decrease in the quantity supplied of lobster,then the supply of lobster is

If a 5 percent increase in income leads to a 10 percent increase in quantity demanded for airline travel,then airline travel is

If the demand for iPods is price elastic,then

Figure 6-2 -Refer to Figure 6-2.As price falls from PA to PB,the quantity demanded increases most along D1; therefore,

Economics: Foundations and Models

Trade-Offs, comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency, government Price Setting, and Taxes

Externalities, environmental Policy, and Public Goods

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

Consumer Choice and Behavioral Economics

Technology, production, and Costs

Firms in Perfectly Competitive Markets

Monopolistic Competition: the Competitive Model in a More Realistic Setting

Oligopoly: Firms in Less Competitive Markets

Monopoly and Antitrust Policy

Pricing Strategy

The Markets for Labor and Other Factors of Production

Public Choice, taxes, and the Distribution of Income

Filters

Figure 6-2 -Refer to Figure 6-2.As price falls from P_A to P_B,the quantity demanded increases most along D₁; therefore,