Exam 6: Elasticity: the Responsiveness of Demand and Supply

Explore all topics

A newspaper story on the effect of higher milk prices on the market for ice cream contained the following: "As a result [of the increase in milk prices],retail prices for ice cream are up 4 percent from last year....And ice cream consumption is down 3 percent." Source: John Curran,"Ice Cream,They Scream: Milk Fat Costs Drive Up Ice Cream Prices," Associated Press,July 23,2001. Based on the information given,what is the price elasticity of demand for ice cream?

(Multiple Choice)

4.8/5

(32)

Question 141

Suppose the current price of copper is $3 per pound and the quantity supplied is 200 pounds per day.If the price of copper falls to $2.50 per pound,the quantity supplied drops to 180 pounds per day.Use the midpoint formula to calculate the price elasticity of supply for copper.

(Essay)

4.9/5

(45)

Question 142

Suppose at the current price,the demand for copper is estimated at -3.14.What happens to sales revenue if the government imposes a price ceiling below the free market equilibrium price in the copper market?

(Multiple Choice)

4.9/5

(42)

Question 143

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

(True/False)

4.9/5

(44)

Question 144

If demand for a product is perfectly inelastic a change in price will not change total revenue.

(True/False)

4.9/5

(38)

Question 145

The cross-price elasticity of demand between Coca-Cola and Pepsi-Cola is calculated by dividing

(Multiple Choice)

4.8/5

(41)

Question 146

For a given demand curve,will there be a greater loss of economic efficiency from a binding price floor when supply is elastic or inelastic? Illustrate your answer with a demand and supply graph.In your graph you must show two supply curves,one elastic and the other inelastic.

(Essay)

4.9/5

(28)

Question 147

A recent study indicated that "Stricter college alcohol policies such as raising the price of alcohol,or banning alcohol on campus,decreases the number of students who use marijuana." This indicates that the cross-price elasticity between alcohol and marijuana is positive.

(True/False)

4.8/5

(33)

Question 148

Most food products have low income and price elasticities of demand.

(True/False)

4.8/5

(37)

Question 149

If tolls on a toll road can be raised significantly before commuters will consider using a free alternative,demand for using the toll road must be

(Multiple Choice)

4.7/5

(34)

Question 150

Showing 141 - 150 of 150

Suppose the current price of copper is $3 per pound and the quantity supplied is 200 pounds per day.If the price of copper falls to $2.50 per pound,the quantity supplied drops to 180 pounds per day.Use the midpoint formula to calculate the price elasticity of supply for copper.

Suppose at the current price,the demand for copper is estimated at -3.14.What happens to sales revenue if the government imposes a price ceiling below the free market equilibrium price in the copper market?

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

If demand for a product is perfectly inelastic a change in price will not change total revenue.

The cross-price elasticity of demand between Coca-Cola and Pepsi-Cola is calculated by dividing

For a given demand curve,will there be a greater loss of economic efficiency from a binding price floor when supply is elastic or inelastic? Illustrate your answer with a demand and supply graph.In your graph you must show two supply curves,one elastic and the other inelastic.

A recent study indicated that "Stricter college alcohol policies such as raising the price of alcohol,or banning alcohol on campus,decreases the number of students who use marijuana." This indicates that the cross-price elasticity between alcohol and marijuana is positive.

Most food products have low income and price elasticities of demand.

If tolls on a toll road can be raised significantly before commuters will consider using a free alternative,demand for using the toll road must be

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