Exam 4: Elasticity: the Responsiveness of Demand and Supply

If at a price of $10,a vendor sells 5 units of a product and at a price of $8,6 units are sold,then,using the midpoint formula,the demand for this good is inelastic.

(True/False)

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Question 141

If 50 units are sold at a price of $20 and 80 units are sold at a price of $15,what is the absolute value of the price elasticity of demand? Use the midpoint formula.

(Multiple Choice)

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Question 142

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

(True/False)

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Question 143

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

(Multiple Choice)

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Question 144

A demand curve that is horizontal indicates that the commodity

(Multiple Choice)

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Question 145

Which of the following is a key determinant of the price elasticity of supply?

(Multiple Choice)

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Question 146

Price elasticity of supply is used to gauge

(Multiple Choice)

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Question 147

The price elasticity of demand is equal to

(Multiple Choice)

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Question 148

The price elasticity of supply is usually a positive number because

(Multiple Choice)

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Question 149

Which of the following statements about price elasticity of demand is false?

(Multiple Choice)

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Question 150

The price elasticity of the supply of teenage labour services is approximately 1.36.Suppose the minimum wage rises from $7.25 per hour to $8.75.Using the midpoint formula,calculate the approximate change in the quantity supplied of teenage labour.

(Multiple Choice)

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Question 151

If at a price of $24,Octavia sells 36 home-grown orchids and at $30 she sells 24 home-grown orchids,the demand for her orchids is

(Multiple Choice)

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Question 152

If firms do not increase their quantity supplied when price changes,then supply is

(Multiple Choice)

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Question 153

Suppose the value of the price elasticity of supply is 4.What does this mean?

(Multiple Choice)

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Question 154

Cross-price elasticity of demand is calculated as the

(Multiple Choice)

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Question 155

Figure 4-1 -Refer to Figure 4-1.A perfectly elastic demand curve is shown in

(Multiple Choice)

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Question 156

Suppose the demand for milk is relatively inelastic.What happens to sales revenue if the government imposes a price floor above the free market equilibrium price in the market for milk?

(Multiple Choice)

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Question 157

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 158

Suppose the demand curve for a product is represented by a typical downward-sloping curve.Now suppose the demand for this product decreases.Which of the following statements accurately predicts the resulting decrease in price?

(Multiple Choice)

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Question 159

We should never assume that an inelastic demand curve is a perfectly inelastic demand curve because

(Multiple Choice)

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Question 160

Showing 141 - 160 of 226

If at a price of $10,a vendor sells 5 units of a product and at a price of $8,6 units are sold,then,using the midpoint formula,the demand for this good is inelastic.

If 50 units are sold at a price of $20 and 80 units are sold at a price of $15,what is the absolute value of the price elasticity of demand? Use the midpoint formula.

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

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

A demand curve that is horizontal indicates that the commodity

Which of the following is a key determinant of the price elasticity of supply?

Price elasticity of supply is used to gauge

The price elasticity of demand is equal to

The price elasticity of supply is usually a positive number because

Which of the following statements about price elasticity of demand is false?

The price elasticity of the supply of teenage labour services is approximately 1.36.Suppose the minimum wage rises from $7.25 per hour to $8.75.Using the midpoint formula,calculate the approximate change in the quantity supplied of teenage labour.

If at a price of $24,Octavia sells 36 home-grown orchids and at $30 she sells 24 home-grown orchids,the demand for her orchids is

If firms do not increase their quantity supplied when price changes,then supply is

Suppose the value of the price elasticity of supply is 4.What does this mean?

Cross-price elasticity of demand is calculated as the

Figure 4-1 -Refer to Figure 4-1.A perfectly elastic demand curve is shown in

Suppose the demand for milk is relatively inelastic.What happens to sales revenue if the government imposes a price floor above the free market equilibrium price in the market for milk?

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

Suppose the demand curve for a product is represented by a typical downward-sloping curve.Now suppose the demand for this product decreases.Which of the following statements accurately predicts the resulting decrease in price?

We should never assume that an inelastic demand curve is a perfectly inelastic demand curve because

Economics: Foundations and Models

Choices and Trade-Offs in the Market

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency, Government Price Setting and Taxes

Consumer Choice and Behavioural Economics

Technology, Production and Costs

Firms in Perfectly Competitive Markets

Monopoly Markets

Monopolistic Competition

Oligopoly: Firms in Less Competitive Markets

The Markets 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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