Question 1

If the price of a six-pack of Pepsi falls from $4 to $3 and the quantity purchased increases 80 percent,then demand is

Accepted Answer

A) inelastic. 
B) elastic. 
C) unit elastic. 
D) perfectly inelastic. 
E) perfectly elastic. 
A) inelastic. 
B) elastic. 
C) unit elastic. 
D) perfectly inelastic. 
E) perfectly elastic.

Question 2

If a 2 percent change in price leads to a ________ percent change in the quantity demanded,then demand is ________.

Accepted Answer

A) 2;elastic 
B) 1;unit elastic 
C) 3;inelastic 
D) 1;inelastic 
E) 0;perfectly elastic 
A) 2;elastic 
B) 1;unit elastic 
C) 3;inelastic 
D) 1;inelastic 
E) 0;perfectly elastic

Question 3

The income elasticity of demand for store brands of soda (that is,non-name brands)is negative.What does this fact indicate about consumers' perceptions about the store brands?

Accepted Answer

The negative income elasticity indicates

Question 4

If a 30 percent price increase generates a 20 percent decrease in quantity demanded,then demand is

Accepted Answer

A) inelastic. 
B) elastic. 
C) unit elastic. 
D) perfectly elastic. 
E) perfectly inelastic. 
A) inelastic. 
B) elastic. 
C) unit elastic. 
D) perfectly elastic. 
E) perfectly inelastic.

Question 5

The cross elasticity of demand

Accepted Answer

A) means that an increase in the demand for one good leads to a decrease in demand for another good. 
B) measures how a change in the price of one good impacts the demand for another good. 
C) measures how a change in supply impacts the demand for the good. 
D) means that an increase in the price of one good leads to an increase in the price of another good. 
E) measures how a change in income impacts the demand for the good. 
A) means that an increase in the demand for one good leads to a decrease in demand for another good. 
B) measures how a change in the price of one good impacts the demand for another good. 
C) measures how a change in supply impacts the demand for the good. 
D) means that an increase in the price of one good leads to an increase in the price of another good. 
E) measures how a change in income impacts the demand for the good.

Question 6

Pete feeds his dog 100 percent more Pup-Peronis when Zuke's treats increase in price by 50 percent.For Pete,Pup-Peronis and Zuke's are ________ and the cross-price elasticity of demand is ________.

Accepted Answer

A) complements;-1/2 
B) substitutes;2 
C) substitutes;-2 
D) complements;2 
E) substitutes;1/2 
A) complements;-1/2 
B) substitutes;2 
C) substitutes;-2 
D) complements;2 
E) substitutes;1/2

Question 7

The figure above shows the supply curve for roses.
-In the figure above,at the point where the price is $60 per bunch,the price elasticity of supply is

Accepted Answer

A) 1.8. 
B) 0.56. 
C) 1. 
D) 1.5. 
E) 0. 
A) 1.8. 
B) 0.56. 
C) 1. 
D) 1.5. 
E) 0.

Question 8

The income elasticity of demand is ________ if the good is ________ good.

Accepted Answer

A) positive;a normal 
B) positive;an inferior 
C) negative;a normal 
D) less than one;an inferior 
E) positive;a substitute 
A) positive;a normal 
B) positive;an inferior 
C) negative;a normal 
D) less than one;an inferior 
E) positive;a substitute

Question 9

If the price elasticity of supply of corn is 3.12,then is the supply of corn elastic or inelastic?

Accepted Answer

Because the price el

Question 10

If the price of a Brita water filtration system increases and the quantity demanded of bottled water increases,then these two goods are

Accepted Answer

A) substitutes. 
B) complements. 
C) normal goods. 
D) inferior goods. 
E) inelastic goods. 
A) substitutes. 
B) complements. 
C) normal goods. 
D) inferior goods. 
E) inelastic goods.

Question 11

What is an inferior good?

Accepted Answer

A) a product of low quality that we do not want to purchase 
B) a product for which demand increases when income increases,and demand decreases when income decreases 
C) a product for which demand increases when income decreases,and demand decreases when income increases 
D) a product that is complementary 
E) a product that is a substitute for another,better good 
A) a product of low quality that we do not want to purchase 
B) a product for which demand increases when income increases,and demand decreases when income decreases 
C) a product for which demand increases when income decreases,and demand decreases when income increases 
D) a product that is complementary 
E) a product that is a substitute for another,better good

Question 12

If two goods have a cross elasticity of demand of -2,then when the price of one good increases,the demand curve of the other good

Accepted Answer

A) shifts rightward. 
B) shifts leftward. 
C) remains unchanged and the supply curve also remains unchanged. 
D) might shift rightward,leftward,or remain unchanged. 
E) remains unchanged but the supply curve shifts leftward. 
A) shifts rightward. 
B) shifts leftward. 
C) remains unchanged and the supply curve also remains unchanged. 
D) might shift rightward,leftward,or remain unchanged. 
E) remains unchanged but the supply curve shifts leftward.

Question 13

Suppose the San Francisco 49ers lower ticket prices by 15 percent and as a result the quantity of tickets demanded increases by 10 percent.This set of results shows that San Francisco 49ers tickets have

Accepted Answer

A) an inelastic demand. 
B) an elastic demand. 
C) a unit elastic demand. 
D) an inelastic supply. 
E) an elastic supply. 
A) an inelastic demand. 
B) an elastic demand. 
C) a unit elastic demand. 
D) an inelastic supply. 
E) an elastic supply.

Question 14

If the price of a DVD falls from $20 to $12 and the quantity of DVDs supplied decreases from 118,000 per hour to 100,000 per hour,using the midpoint formula the elasticity of supply equals

Accepted Answer

A) 0.33. 
B) 2.94. 
C) 3.08. 
D) 0.23. 
E) -3.08. 
A) 0.33. 
B) 2.94. 
C) 3.08. 
D) 0.23. 
E) -3.08.

Question 15

If you know the cross elasticity between two goods is negative,then you know the goods are

Accepted Answer

A) substitutes. 
B) normal goods. 
C) complements. 
D) inferior goods. 
E) inelastic goods. 
A) substitutes. 
B) normal goods. 
C) complements. 
D) inferior goods. 
E) inelastic goods.

Question 16

The figure above shows the demand curve for Starbucks latte.
-In the figure above,the demand is inelastic in the range of prices between

Accepted Answer

A) $3.50 and $4.50 per cup. 
B) $2.50 and $3.50 per cup. 
C) $1.00 and $2.00 per cup. 
D) $2.25 and $4.50 per cup. 
E) $2.75 and $3.75 per cup. 
A) $3.50 and $4.50 per cup. 
B) $2.50 and $3.50 per cup. 
C) $1.00 and $2.00 per cup. 
D) $2.25 and $4.50 per cup. 
E) $2.75 and $3.75 per cup.

Question 17

If a 10 percent price increase generates a 20 percent decrease in quantity demanded,then demand is

Accepted Answer

A) elastic. 
B) perfectly inelastic. 
C) perfectly elastic. 
D) inelastic. 
E) unit elastic. 
A) elastic. 
B) perfectly inelastic. 
C) perfectly elastic. 
D) inelastic. 
E) unit elastic.

Question 18

If a firm supplies 200 units at a price of $50 and 100 units at a price of $40,using the midpoint method,what is the price elasticity of supply?

Accepted Answer

A) 0.33 
B) 1.00 
C) 3.00 
D) 5.00 
E) 8.50 
A) 0.33 
B) 1.00 
C) 3.00 
D) 5.00 
E) 8.50

Question 19

KFC raises the price of its grilled chicken.The price elasticity of demand for KFC grilled chicken is 0.8.What happens to the KFC's total revenue?

Accepted Answer

A) nothing 
B) It increases. 
C) It decreases. 
D) It becomes negative. 
E) It might change,but more information is needed to determine if it increases,decreases,or does not change. 
A) nothing 
B) It increases. 
C) It decreases. 
D) It becomes negative. 
E) It might change,but more information is needed to determine if it increases,decreases,or does not change.

Question 20

How does elasticity of supply differ for a product that can be stored,compared to a product that cannot be stored?

Accepted Answer

A product that can be stored can be with

If the price of a six-pack of Pepsi falls from $4 to $3 and the quantity purchased increases 80 percent,then demand is

If a 2 percent change in price leads to a percent change in the quantity demanded,then demand is .

The income elasticity of demand for store brands of soda (that is,non-name brands)is negative.What does this fact indicate about consumers' perceptions about the store brands?

If a 30 percent price increase generates a 20 percent decrease in quantity demanded,then demand is

The cross elasticity of demand

Pete feeds his dog 100 percent more Pup-Peronis when Zuke's treats increase in price by 50 percent.For Pete,Pup-Peronis and Zuke's are and the cross-price elasticity of demand is .

The figure above shows the supply curve for roses. -In the figure above,at the point where the price is $60 per bunch,the price elasticity of supply is

The income elasticity of demand is if the good is good.

If the price elasticity of supply of corn is 3.12,then is the supply of corn elastic or inelastic?

If the price of a Brita water filtration system increases and the quantity demanded of bottled water increases,then these two goods are

What is an inferior good?

If two goods have a cross elasticity of demand of -2,then when the price of one good increases,the demand curve of the other good

Suppose the San Francisco 49ers lower ticket prices by 15 percent and as a result the quantity of tickets demanded increases by 10 percent.This set of results shows that San Francisco 49ers tickets have

If the price of a DVD falls from $20 to $12 and the quantity of DVDs supplied decreases from 118,000 per hour to 100,000 per hour,using the midpoint formula the elasticity of supply equals

If you know the cross elasticity between two goods is negative,then you know the goods are

The figure above shows the demand curve for Starbucks latte. -In the figure above,the demand is inelastic in the range of prices between

If a 10 percent price increase generates a 20 percent decrease in quantity demanded,then demand is

If a firm supplies 200 units at a price of $50 and 100 units at a price of $40,using the midpoint method,what is the price elasticity of supply?

KFC raises the price of its grilled chicken.The price elasticity of demand for KFC grilled chicken is 0.8.What happens to the KFC's total revenue?

How does elasticity of supply differ for a product that can be stored,compared to a product that cannot be stored?

Getting Started

The Usand Global Economies

The Economic Problem

Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Global Markets in Action

Externalities: Pollution, education, and Health Care

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Gdp: a Measure of Total Production and Income

Jobs and Unemployment

The Cpi and the Cost of Living

Potential Gdp and Economic Growth

Money and the Monetary System

Aggregate Supply and Aggregate Demand

Fiscal Policy and Monetary Policy

Filters

Exam 5: Elasticities of Demand and Supply

If the price of a six-pack of Pepsi falls from $4 to $3 and the quantity purchased increases 80 percent,then demand is

If a 2 percent change in price leads to a ________ percent change in the quantity demanded,then demand is ________.

The income elasticity of demand for store brands of soda (that is,non-name brands)is negative.What does this fact indicate about consumers' perceptions about the store brands?

If a 30 percent price increase generates a 20 percent decrease in quantity demanded,then demand is

The cross elasticity of demand

Pete feeds his dog 100 percent more Pup-Peronis when Zuke's treats increase in price by 50 percent.For Pete,Pup-Peronis and Zuke's are ________ and the cross-price elasticity of demand is ________.

The figure above shows the supply curve for roses. -In the figure above,at the point where the price is $60 per bunch,the price elasticity of supply is

The income elasticity of demand is ________ if the good is ________ good.

If the price elasticity of supply of corn is 3.12,then is the supply of corn elastic or inelastic?

If the price of a Brita water filtration system increases and the quantity demanded of bottled water increases,then these two goods are

What is an inferior good?

If two goods have a cross elasticity of demand of -2,then when the price of one good increases,the demand curve of the other good

Suppose the San Francisco 49ers lower ticket prices by 15 percent and as a result the quantity of tickets demanded increases by 10 percent.This set of results shows that San Francisco 49ers tickets have

If the price of a DVD falls from $20 to $12 and the quantity of DVDs supplied decreases from 118,000 per hour to 100,000 per hour,using the midpoint formula the elasticity of supply equals

If you know the cross elasticity between two goods is negative,then you know the goods are

The figure above shows the demand curve for Starbucks latte. -In the figure above,the demand is inelastic in the range of prices between

If a 10 percent price increase generates a 20 percent decrease in quantity demanded,then demand is

If a firm supplies 200 units at a price of $50 and 100 units at a price of $40,using the midpoint method,what is the price elasticity of supply?

KFC raises the price of its grilled chicken.The price elasticity of demand for KFC grilled chicken is 0.8.What happens to the KFC's total revenue?

How does elasticity of supply differ for a product that can be stored,compared to a product that cannot be stored?

Getting Started

The Usand Global Economies

The Economic Problem

Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Global Markets in Action

Externalities: Pollution, education, and Health Care

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Gdp: a Measure of Total Production and Income

Jobs and Unemployment

The Cpi and the Cost of Living

Potential Gdp and Economic Growth

Money and the Monetary System

Aggregate Supply and Aggregate Demand

Fiscal Policy and Monetary Policy

Filters

If a 2 percent change in price leads to a percent change in the quantity demanded,then demand is .

Pete feeds his dog 100 percent more Pup-Peronis when Zuke's treats increase in price by 50 percent.For Pete,Pup-Peronis and Zuke's are and the cross-price elasticity of demand is .

The income elasticity of demand is if the good is good.