\[\begin{array} { l r r r r r r } \text { Month } & \mathbf { P X } _ { \mathbf { X } } & \mathbf { Q X } & \mathbf { P } _ { \mathbf { Y } } & \mathbf { Q } & \mathbf { P } _ { \mathbf { Z } } & \mathbf { \text { QZ } } \\ \hline \text { Jan } & \$ 10 & 100 & \$ 20 & 50 & \$ 25 & 200 \\ \text { Feb } & 10 & 90 & 18 & 60 & 25 & 225 \\ \text { Mar } & 10 & 70 & 15 & 90 & 25 & 275 \\ \text { Apr } & 12 & 50 & 15 & 100 & 25 & 290 \\ \text { May } & 15 & 25 & 15 & 120 & 25 & 320\\\hline \end{array}\] -In the above table,the cross price elasticity of demand for good Y with good X when PX rises from $10 to $12 is

A) +0.29. B) +1.83. C) +0.58. D) -0.58. A) +0.29. B) +1.83. C) +0.58. D) -0.58.

\[\begin{array} { c c } \begin{array} { c } \text { Price } \\ \text { Per Unit } \end{array} & \begin{array} { c } \text { Quantity Demanded } \\ \text { Per Week } \end{array} \\ \hline \$ 5.5 & 20 \\ \$ 6.0 & 18 \\ \$ 6.5 & 16 \\ \$ 7.0 & 14 \\ \$ 7.5 & 12 \\ \$ 8.0 & 10 \end{array}\] -According to the above table,what is the absolute price elasticity of demand if price falls from $8.00 to $7.50?

A) 4.00 B) 2.82 C) 1.80 D) 1.21 A) 4.00 B) 2.82 C) 1.80 D) 1.21

\[\begin{array} { c c } \hline \begin{array} { c } \text { Price } \\ \text { Per Unit } \end{array} & \begin{array} { c } \text { Quantity Demanded } \\ \text { Per Week } \end{array} \\ \hline \$ 10.00 & 25 \\ 9.50 & 30 \\ 9.00 & 35 \\ 8.50 & 40 \\ 8.00 & 45 \\ 7.50 & 50 \\ 7.00 & 55 \\ 6.50 & 60 \\ 6.00 & 65 \\ 5.50 & 70 \\ 5.00 & 75 \end{array}\] -Refer to the above table.What is the absolute price elasticity of demand when a price rises from $8 to $8.50?

A) 5.15 B) 1.94 C) 0.515 D) 0.194 A) 5.15 B) 1.94 C) 0.515 D) 0.194

Exam 6: Demand and Supply Elasticity

The value of the absolute price elasticity of demand for good X is 4.The absolute price elasticity for good Y is 1.Which good's quantity demanded is more responsive to a change in price?

(Multiple Choice)

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Question 381

When the price of a video rental was $2.00,ticket sales at the local movie theatre averaged 180 admissions per night.Then the video store reduced the price of a video rental to $1,and the theatre manager reported that ticket sales had fallen to 126 per night.What is the approximate value of the cross price elasticity of demand between video rentals and theatre tickets?

(Multiple Choice)

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Question 382

A perfectly elastic demand curve is

(Multiple Choice)

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Question 383

Month Jan \ 10 100 \ 20 50 \ 25 200 Feb 10 90 18 60 25 225 Mar 10 70 15 90 25 275 Apr 12 50 15 100 25 290 May 15 25 15 120 25 320 -In the above table,the cross price elasticity of demand for good Y with good X when PX rises from $10 to $12 is

(Multiple Choice)

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Question 384

The percentage change in the demand for one good divided by the percentage change in the price of a related good is the

(Multiple Choice)

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Question 385

-Use the above figure.Which graph depicts a normal good?

(Multiple Choice)

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Question 386

Over the inelastic range of a demand curve,there is

(Multiple Choice)

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Question 387

When total revenue and price are directly related,demand is

(Multiple Choice)

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Question 388

Price Per Unit Quantity Demanded Per Week \ 5.5 20 \ 6.0 18 \ 6.5 16 \ 7.0 14 \ 7.5 12 \ 8.0 10 -According to the above table,what is the absolute price elasticity of demand if price falls from $8.00 to $7.50?

(Multiple Choice)

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Question 389

Other things being equal,the longer a price change persists,

(Multiple Choice)

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Question 390

The cross price elasticity of demand is measured by the

(Multiple Choice)

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Question 391

A decrease in total revenue will result if

(Multiple Choice)

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Question 392

Price Per Unit Quantity Demanded Per Week \ 10.00 25 9.50 30 9.00 35 8.50 40 8.00 45 7.50 50 7.00 55 6.50 60 6.00 65 5.50 70 5.00 75 -Refer to the above table.What is the absolute price elasticity of demand when a price rises from $8 to $8.50?

(Multiple Choice)

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Question 393

Suppose that the cross price elasticity of demand between good X and good Y is -1.55.This indicates that the two goods are

(Multiple Choice)

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Question 394

Price elasticity of demand basically measures

(Multiple Choice)

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Question 395

If demand is perfectly elastic everywhere along the demand curve,then

(Multiple Choice)

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Question 396

When the price of a textbook is $100,60 copies are demanded; and when the price of that textbook goes up to $120,30 copies are demanded.In the price range between $100 and $120,the demand for the textbook is

(Multiple Choice)

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Question 397

If the price of gasoline increased by 5 % and consumers responded by purchasing 1 % less gasoline,the absolute value of price elasticity of demand for gasoline would equal

(Multiple Choice)

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Question 398

The longer the time frame involved,the more likely it is that the demand will be relatively

(Multiple Choice)

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Question 399

Generally,expenses on a sport utility vehicle are a large part of a consumer's budget,so the demand for sport utility vehicles is more likely to be

(Multiple Choice)

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Question 400

The value of the absolute price elasticity of demand for good X is 4.The absolute price elasticity for good Y is 1.Which good's quantity demanded is more responsive to a change in price?

A perfectly elastic demand curve is

Month Jan \ 10 100 \ 20 50 \ 25 200 Feb 10 90 18 60 25 225 Mar 10 70 15 90 25 275 Apr 12 50 15 100 25 290 May 15 25 15 120 25 320 -In the above table,the cross price elasticity of demand for good Y with good X when PX rises from $10 to $12 is

The percentage change in the demand for one good divided by the percentage change in the price of a related good is the

-Use the above figure.Which graph depicts a normal good?

Over the inelastic range of a demand curve,there is

When total revenue and price are directly related,demand is

Price Per Unit Quantity Demanded Per Week \ 5.5 20 \ 6.0 18 \ 6.5 16 \ 7.0 14 \ 7.5 12 \ 8.0 10 -According to the above table,what is the absolute price elasticity of demand if price falls from $8.00 to $7.50?

Other things being equal,the longer a price change persists,

The cross price elasticity of demand is measured by the

A decrease in total revenue will result if

Price Per Unit Quantity Demanded Per Week \ 10.00 25 9.50 30 9.00 35 8.50 40 8.00 45 7.50 50 7.00 55 6.50 60 6.00 65 5.50 70 5.00 75 -Refer to the above table.What is the absolute price elasticity of demand when a price rises from $8 to $8.50?

Suppose that the cross price elasticity of demand between good X and good Y is -1.55.This indicates that the two goods are

Price elasticity of demand basically measures

If demand is perfectly elastic everywhere along the demand curve,then

When the price of a textbook is $100,60 copies are demanded; and when the price of that textbook goes up to $120,30 copies are demanded.In the price range between $100 and $120,the demand for the textbook is

If the price of gasoline increased by 5 % and consumers responded by purchasing 1 % less gasoline,the absolute value of price elasticity of demand for gasoline would equal

The longer the time frame involved,the more likely it is that the demand will be relatively

Generally,expenses on a sport utility vehicle are a large part of a consumer's budget,so the demand for sport utility vehicles is more likely to be

The Nature of Economics

Scarcity and the World of Trade-Offs

Demand and Supply

Extensions of Demand and Supply Analysis

Public Spending and Public Choice

Funding the Public Sector

Consumer Choice

Rents, profits, and the Financial Environment of Business

The Firm: Cost and Output Determination

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly and Strategic Behavior

Regulation and Antitrust Policy in a Globalized Economy

The Labor Market: Demand, supply and Outsourcing

Unions and Labor Market Monopoly Power

Income, poverty, and Health Care

Environmental Economics

Comparative Advantage and the Open Economy

Exchange Rates and the Balance of Payments

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