Exam 5: Elasticity and Its Applications: Part B

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The demand for soap is more elastic than the demand for Dove soap.

(True/False)

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Question 21

Price elasticity of supply measures how much the quantity supplied responds to changes in the price.

(True/False)

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Question 22

Demand for a good is said to be inelastic if the quantity demanded increases slightly when the price falls by a large amount.

(True/False)

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Question 23

If demand is perfectly inelastic,the demand curve is vertical,and the price elasticity of demand equals 0.

(True/False)

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Question 24

Elasticity measures how responsive quantity is to changes in price.

(True/False)

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Question 25

A government program that pays farmers not to plant corn on part of their land can help farmers not only through the subsidy payments to farmers who participate in the program but also by raising the market price of corn.

(True/False)

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Question 26

A linear,downward-sloping demand curve has a constant elasticity but a changing slope.

(True/False)

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Question 27

Price elasticity of demand along a linear,downward-sloping demand curve decreases as price falls.

(True/False)

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Question 28

Measures of elasticity enhance our ability to study the magnitudes of changes in quantities in response to changes in prices or income.

(True/False)

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Question 29

Price elasticity of demand along a linear,downward-sloping demand curve increases as price falls.

(True/False)

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Question 30

If the price of calculators increases by 15% and the quantity demanded per week falls by 45% as a result,then the price elasticity of demand is 3.

(True/False)

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Question 31

If we observe that when a consumer's income rises by 10%,the quantity demanded of chocolate candy bars increases by 15%,then chocolate candy bars are are a normal good for that consumer.

(True/False)

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Question 32

When demand is inelastic,a decrease in price increases total revenue.

(True/False)

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Question 33

In general,demand curves for luxuries tend to be price elastic.

(True/False)

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Question 34

The price elasticity of demand is defined as the percentage change in price divided by the percentage change in quantity demanded.

(True/False)

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Question 35

Supply and demand both tend to be more elastic in the long run and more inelastic in the short run.

(True/False)

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Question 36

Even the demand for a necessity such as gasoline will respond to a change in price,especially over a longer time horizon.

(True/False)

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Question 37

Demand is elastic if the price elasticity of demand is greater than 1.

(True/False)

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Question 38

The price elasticity of demand is defined as the percentage change in quantity demanded divided by the percentage change in price.

(True/False)

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Question 39

When the price of knee braces increased by 25 percent,the Brace Yourself Company increased its quantity supplied of knee braces per week by 75 percent.BYC's price elasticity of supply of knee braces is 0.33.

(True/False)

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Question 40

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Exam 5: Elasticity and Its Applications: Part B

The demand for soap is more elastic than the demand for Dove soap.

Price elasticity of supply measures how much the quantity supplied responds to changes in the price.

Demand for a good is said to be inelastic if the quantity demanded increases slightly when the price falls by a large amount.

If demand is perfectly inelastic,the demand curve is vertical,and the price elasticity of demand equals 0.

Elasticity measures how responsive quantity is to changes in price.

A government program that pays farmers not to plant corn on part of their land can help farmers not only through the subsidy payments to farmers who participate in the program but also by raising the market price of corn.

A linear,downward-sloping demand curve has a constant elasticity but a changing slope.

Price elasticity of demand along a linear,downward-sloping demand curve decreases as price falls.

Measures of elasticity enhance our ability to study the magnitudes of changes in quantities in response to changes in prices or income.

Price elasticity of demand along a linear,downward-sloping demand curve increases as price falls.

If the price of calculators increases by 15% and the quantity demanded per week falls by 45% as a result,then the price elasticity of demand is 3.

If we observe that when a consumer's income rises by 10%,the quantity demanded of chocolate candy bars increases by 15%,then chocolate candy bars are are a normal good for that consumer.

When demand is inelastic,a decrease in price increases total revenue.

In general,demand curves for luxuries tend to be price elastic.

The price elasticity of demand is defined as the percentage change in price divided by the percentage change in quantity demanded.

Supply and demand both tend to be more elastic in the long run and more inelastic in the short run.

Even the demand for a necessity such as gasoline will respond to a change in price,especially over a longer time horizon.

Demand is elastic if the price elasticity of demand is greater than 1.

The price elasticity of demand is defined as the percentage change in quantity demanded divided by the percentage change in price.

When the price of knee braces increased by 25 percent,the Brace Yourself Company increased its quantity supplied of knee braces per week by 75 percent.BYC's price elasticity of supply of knee braces is 0.33.

Ten Principles of Economics

Ten Principles of Economics: How People Make Decisions

Ten Principles of Economics: How People Interact

Ten Principles of Economics: How the Economy As a Whole Works

Ten Principles of Economics: Part A

Ten Principles of Economics: Part B

Thinking Like an Economist

Thinking Like an Economist: The Economist As Scientist

Thinking Like an Economist: The Economist As Policy Adviser

Thinking Like an Economist: Why Economists Disagree

Thinking Like an Economist: Lets Get Going

Thinking Like an Economist: Graphing a Brief Review

Thinking Like an Economist: Part A

Thinking Like an Economist: Part B

Interdependence and the Gains From Trade

Interdependence and the Gains From Trade: A Parable for the Modern Economy

Interdependence and the Gains From Trade: Comparative Advantage the Driving Force of Specialization

Interdependence and the Gains From Trade: Applications of Comparative Advantage

Interdependence and the Gains From Trade: Conclusion

Interdependence and the Gains From Trade: Part A

Interdependence and the Gains From Trade: Part B

The Market Forces of Supply and Demand

The Market Forces of Supply and Demand:Markets and Competition

The Market Forces of Supply and Demand: Demand

The Market Forces of Supply and Demand: Supply

The Market Forces of Supply and Demand: Supply and Demand Together

The Market Forces of Supply and DemandConclusion How Prices Allocate Resources

The Market Forces of Supply and Demand: Part A

The Market Forces of Supply and Demand: Part B

Elasticity and Its Applications

Elasticity and Its Applications: The Elasticity of Demand

Elasticity and Its Applications: The Elasticity of Supply

Elasticity and Its Applications: Three Applications of Supply,demand,and Elasticity

Elasticity and Its Applications: Part A

Supply Demand and Government Policies

Supply Demand and Government Policies: Controls on Prices

Supply Demand and Government Policies: Taxes

Supply Demand and Government Policies: Part A

Supply Demand and Government Policies: Part B

Consumers Producers and the Efficiency of Markets

Consumers Producers and the Efficiency of Markets: Consumer Surplus

Consumers Producers and the Efficiency of Markets: Producer Surplus

Consumers Producers and the Efficiency of Markets: Market Efficiency

Consumers Producers and the Efficiency of Markets: Conclusion Market Efficiency and Market Failure

Consumers Producers and the Efficiency of Markets: Part A

Consumers Producers and the Efficiency of Markets: Part B

Application the Cost of Taxation

Application the Cost of Taxation: The Deadweight Loss of Taxation

Application the Cost of Taxation: The Determinants of the Deadweight Loss

Application the Cost of Taxation: Deadweight Loss and Tax Revenue As Taxes Vary

Application the Cost of Taxation: Conclusion

Application the Cost of Taxation: Part A

Application the Cost of Taxation: Part B

Application International Trade

Application International Trade: The Determinants of Trade

Application International Trade: The Winners and Losers From Trade

Application International Trade: The Arguments for Restricting Trade

Application International Trade: Conclusion

Application International Trade: Part A