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 6: Elasticity: The Responsiveness of Demand and Supply

List the five key determinants of price elasticity of demand and explain how each determinant indicates if demand tends to be elastic or inelastic.

(Essay)

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Question 141

If the absolute value of the price elasticity of demand for aspirin equals 0.8 then

(Multiple Choice)

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Question 142

The cross-price elasticity of demand between an unlimited texting option and an unlimited call minutes option offered from a cell phone provider would be

(Multiple Choice)

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Question 143

If the income elasticity for canned food is 0.8,then canned food is an inferior good.

(True/False)

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Question 144

Suppose a decrease in the supply of bottled water results in a decrease in revenue.This indicates that

(Multiple Choice)

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Question 145

The demand for The Federalist Papers is likely to be more elastic than the demand for a best-selling mystery novel.

(True/False)

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Question 146

When Audrina raised the price of her home made cookies,her total revenue increased.This suggests that the demand for Audrina's cookies is elastic.

(True/False)

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Question 147

Assume that when the price of cantaloupes is $2.50 the demand for cantaloupes is unit-elastic,and that the demand curve for cantaloupes is linear and downward sloping.If firms lower the price of cantaloupes to $2.00 which of the following statements can be made regarding the price elasticity of demand for cantaloupes?

(Multiple Choice)

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Question 148

A linear downward sloping demand curve has price elasticities (in absolute values)that

(Multiple Choice)

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Question 149

If a firm lowered the price of the product it sells and found that total revenue did not change,then the demand for its product is

(Multiple Choice)

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Question 150

You are the manager of a theater.At present the theater charges the same admission price of $8 to all customers,regardless of age.You propose a two-tier pricing scheme: $5 for children under the age of 12 and $10 for adults.You tell your supervisor that your proposal is likely to increase revenues.What must be true about the price elasticity of demand if your proposal is to achieve its goal of raising revenue? Explain your answer.

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Question 151

Figure 6-1 -Refer to Figure 6-1.A perfectly inelastic demand curve is shown in

(Multiple Choice)

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Question 152

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

(Multiple Choice)

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Question 153

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 154

When the price of tortilla chips rose by 10 percent,the quantity of tortilla chips sold fell 4 percent,and the sale of dips (like salsa and bean dip)fell 8 percent.This set of facts indicates that

(Multiple Choice)

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Question 155

Figure 6-10 -Refer to Figure 6-10.A perfectly inelastic supply curve is shown in

(Multiple Choice)

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Question 156

If at a price of $50,Ghani sells 20 hand-made leather cell-phone covers but at a price of $60,zero units are sold.Based on this information,the demand for his cell-phone covers is

(Multiple Choice)

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Question 157

Suppose the value of the price elasticity of demand is -3.What does this mean?

(Multiple Choice)

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Question 158

Total revenue equals

(Multiple Choice)

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Question 159

Which of the following explains why a firm would be interested in the knowing the price elasticity of demand for a good it sells?

(Multiple Choice)

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Question 160

Showing 141 - 160 of 295

List the five key determinants of price elasticity of demand and explain how each determinant indicates if demand tends to be elastic or inelastic.

If the absolute value of the price elasticity of demand for aspirin equals 0.8 then

The cross-price elasticity of demand between an unlimited texting option and an unlimited call minutes option offered from a cell phone provider would be

If the income elasticity for canned food is 0.8,then canned food is an inferior good.

Suppose a decrease in the supply of bottled water results in a decrease in revenue.This indicates that

The demand for The Federalist Papers is likely to be more elastic than the demand for a best-selling mystery novel.

When Audrina raised the price of her home made cookies,her total revenue increased.This suggests that the demand for Audrina's cookies is elastic.

A linear downward sloping demand curve has price elasticities (in absolute values)that

If a firm lowered the price of the product it sells and found that total revenue did not change,then the demand for its product is

Figure 6-1 -Refer to Figure 6-1.A perfectly inelastic demand curve is shown in

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

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

When the price of tortilla chips rose by 10 percent,the quantity of tortilla chips sold fell 4 percent,and the sale of dips (like salsa and bean dip)fell 8 percent.This set of facts indicates that

Figure 6-10 -Refer to Figure 6-10.A perfectly inelastic supply curve is shown in

If at a price of $50,Ghani sells 20 hand-made leather cell-phone covers but at a price of $60,zero units are sold.Based on this information,the demand for his cell-phone covers is

Suppose the value of the price elasticity of demand is -3.What does this mean?

Total revenue equals

Which of the following explains why a firm would be interested in the knowing the price elasticity of demand for a good it sells?

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

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