Exam 3: Quantitative Demand Analysis

Suppose the equilibrium price in the market is $100 and the marginal revenue associated with the linear (inverse) demand function is $50. Then we know that the own price elasticity of demand is:

(Multiple Choice)

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Question 121

The demand for good X is given by ln Q_x^d = 120 - 0.9 ln P_x + 1.5 ln P_y - 0.7 ln M. Which of the following statements is correct?

(Multiple Choice)

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Question 122

From the regression output, the predicted regression line is:

(Multiple Choice)

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Question 123

When a demand curve is linear:

(Multiple Choice)

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Question 124

If the cross-price elasticity between goods X and Y is zero, we know the goods are:

(Multiple Choice)

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Question 125

Which of the following can be used to quantify the overall statistical significance of a regression?

(Multiple Choice)

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Question 126

Suppose the demand function is Q_x^d = 100 - 8P_x + 6P_y - M. If P_x = $4, P_y = $2, and M = $10, what is the cross-price elasticity of good x with respect to the price of good y?

(Multiple Choice)

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Question 127

Suppose the own price elasticity of demand for good X is -0.5, and the price of good X increases by 10 percent. What would you expect to happen to the total expenditures on good X?

(Multiple Choice)

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Question 128

As we move up along a linear demand curve, the price elasticity of demand becomes more:

(Multiple Choice)

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Question 129

An econometrician has estimated the inverse demand relation P = a + bQ + e and found that and = 0.75. Find the approximate 95 percent confidence interval for the true values of a and b.

(Essay)

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Question 130

The elasticity of variable G with respect to variable S is defined as:

(Multiple Choice)

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Question 131

You are the manager of a popular hat company. You know that the advertising elasticity of demand for your product is 0.25. How much will you have to increase advertising in order to increase demand by 5 percent?

(Multiple Choice)

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Question 132

You are the manager of a supermarket, and you know that the income elasticity of peanut butter is exactly -0.7. Due to the economic recession, you expect incomes to drop by 15 percent next year. How should you adjust your purchase of peanut butter?

(Multiple Choice)

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Question 133

Suppose the demand function is given by Q_x^d = 8P_x^0.5 P_y^0.25 M^0.12 H. Then good x is:

(Multiple Choice)

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Question 134

Suppose the demand for good x is ln Q_x^d = 21 - 0.8 ln P_x - 1.6 ln P_y + 6.2 ln M + 0.4 ln A_x. Then we know good x is:

(Multiple Choice)

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Question 135

You are the manager of a popular shoe company. You know that the advertising elasticity of demand for your product is 0.15. How much will you have to increase advertising in order to increase demand by 10 percent?

(Multiple Choice)

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Question 136

If the absolute value of the own price elasticity of steak is 0.4, a decrease in price will lead to:

(Multiple Choice)

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Question 137

If there are few close substitutes for a good, demand tends to be relatively:

(Multiple Choice)

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Question 138

Suppose Q_x^d = 10,000 - 2 P_x + 3 P_y - 4.5M, where P_x = $100, P_y = $50, and M = $2,000. Then good X has a demand which is:

(Multiple Choice)

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Question 139

As we move down along a linear demand curve, the price elasticity of demand becomes more:

(Multiple Choice)

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Question 140

Showing 121 - 140 of 170

Suppose the equilibrium price in the market is $100 and the marginal revenue associated with the linear (inverse) demand function is $50. Then we know that the own price elasticity of demand is:

The demand for good X is given by ln Q_x^d = 120 - 0.9 ln P_x + 1.5 ln P_y - 0.7 ln M. Which of the following statements is correct?

From the regression output, the predicted regression line is:

When a demand curve is linear:

If the cross-price elasticity between goods X and Y is zero, we know the goods are:

Which of the following can be used to quantify the overall statistical significance of a regression?

Suppose the demand function is Q_x^d = 100 - 8P_x + 6P_y - M. If P_x = $4, P_y = $2, and M = $10, what is the cross-price elasticity of good x with respect to the price of good y?

Suppose the own price elasticity of demand for good X is -0.5, and the price of good X increases by 10 percent. What would you expect to happen to the total expenditures on good X?

As we move up along a linear demand curve, the price elasticity of demand becomes more:

An econometrician has estimated the inverse demand relation P = a + bQ + e and found that and = 0.75. Find the approximate 95 percent confidence interval for the true values of a and b.

The elasticity of variable G with respect to variable S is defined as:

You are the manager of a popular hat company. You know that the advertising elasticity of demand for your product is 0.25. How much will you have to increase advertising in order to increase demand by 5 percent?

You are the manager of a supermarket, and you know that the income elasticity of peanut butter is exactly -0.7. Due to the economic recession, you expect incomes to drop by 15 percent next year. How should you adjust your purchase of peanut butter?

Suppose the demand function is given by Q_x^d = 8P_x^0.5 P_y^0.25 M^0.12 H. Then good x is:

Suppose the demand for good x is ln Q_x^d = 21 - 0.8 ln P_x - 1.6 ln P_y + 6.2 ln M + 0.4 ln A_x. Then we know good x is:

You are the manager of a popular shoe company. You know that the advertising elasticity of demand for your product is 0.15. How much will you have to increase advertising in order to increase demand by 10 percent?

If the absolute value of the own price elasticity of steak is 0.4, a decrease in price will lead to:

If there are few close substitutes for a good, demand tends to be relatively:

Suppose Q_x^d = 10,000 - 2 P_x + 3 P_y - 4.5M, where P_x = $100, P_y = $50, and M = $2,000. Then good X has a demand which is:

As we move down along a linear demand curve, the price elasticity of demand becomes more:

The Fundamentals of Managerial Economics

Market Forces: Demand and Supply

The Theory of Individual Behavior

The Production Process and Costs

The Organization of the Firm

The Nature of Industry

Managing in Competitive, Monopolistic, and Monopolistically Competitive Markets

Basic Oligopoly Models

Game Theory: Inside Oligopoly

Pricing Strategies for Firms With Market Power

The Economics of Information

Advanced Topics in Business Strategy

A Managers Guide to Government in the Marketplace

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Exam 3: Quantitative Demand Analysis

Suppose the equilibrium price in the market is $100 and the marginal revenue associated with the linear (inverse) demand function is $50. Then we know that the own price elasticity of demand is:

The demand for good X is given by ln Qxd = 120 - 0.9 ln Px + 1.5 ln Py - 0.7 ln M. Which of the following statements is correct?

From the regression output, the predicted regression line is:

When a demand curve is linear:

If the cross-price elasticity between goods X and Y is zero, we know the goods are:

Which of the following can be used to quantify the overall statistical significance of a regression?

Suppose the demand function is Qxd = 100 - 8Px + 6Py - M. If Px = $4, Py = $2, and M = $10, what is the cross-price elasticity of good x with respect to the price of good y?

Suppose the own price elasticity of demand for good X is -0.5, and the price of good X increases by 10 percent. What would you expect to happen to the total expenditures on good X?

As we move up along a linear demand curve, the price elasticity of demand becomes more:

An econometrician has estimated the inverse demand relation P = a + bQ + e and found that and = 0.75. Find the approximate 95 percent confidence interval for the true values of a and b.

The elasticity of variable G with respect to variable S is defined as:

You are the manager of a popular hat company. You know that the advertising elasticity of demand for your product is 0.25. How much will you have to increase advertising in order to increase demand by 5 percent?

You are the manager of a supermarket, and you know that the income elasticity of peanut butter is exactly -0.7. Due to the economic recession, you expect incomes to drop by 15 percent next year. How should you adjust your purchase of peanut butter?

Suppose the demand function is given by Qxd = 8Px0.5 Py0.25 M0.12 H. Then good x is:

Suppose the demand for good x is ln Qxd = 21 - 0.8 ln Px - 1.6 ln Py + 6.2 ln M + 0.4 ln Ax. Then we know good x is:

You are the manager of a popular shoe company. You know that the advertising elasticity of demand for your product is 0.15. How much will you have to increase advertising in order to increase demand by 10 percent?

If the absolute value of the own price elasticity of steak is 0.4, a decrease in price will lead to:

If there are few close substitutes for a good, demand tends to be relatively:

Suppose Qxd = 10,000 - 2 Px + 3 Py - 4.5M, where Px = $100, Py = $50, and M = $2,000. Then good X has a demand which is:

As we move down along a linear demand curve, the price elasticity of demand becomes more:

The Fundamentals of Managerial Economics

Market Forces: Demand and Supply

The Theory of Individual Behavior

The Production Process and Costs

The Organization of the Firm

The Nature of Industry

Managing in Competitive, Monopolistic, and Monopolistically Competitive Markets

Basic Oligopoly Models

Game Theory: Inside Oligopoly

Pricing Strategies for Firms With Market Power

The Economics of Information

Advanced Topics in Business Strategy

A Managers Guide to Government in the Marketplace

Filters

The demand for good X is given by ln Q_x^d = 120 - 0.9 ln P_x + 1.5 ln P_y - 0.7 ln M. Which of the following statements is correct?

Suppose the demand function is Q_x^d = 100 - 8P_x + 6P_y - M. If P_x = $4, P_y = $2, and M = $10, what is the cross-price elasticity of good x with respect to the price of good y?

Suppose the demand function is given by Q_x^d = 8P_x^0.5 P_y^0.25 M^0.12 H. Then good x is:

Suppose the demand for good x is ln Q_x^d = 21 - 0.8 ln P_x - 1.6 ln P_y + 6.2 ln M + 0.4 ln A_x. Then we know good x is:

Suppose Q_x^d = 10,000 - 2 P_x + 3 P_y - 4.5M, where P_x = $100, P_y = $50, and M = $2,000. Then good X has a demand which is: