Question 1

Suppose the price of a movie falls from $9 to $7.Using the midpoint method,what is the percentage change in price?

Accepted Answer

A) 33 percent 
B) -33 percent 
C) 25 percent 
D) -25 percent 
E) -97 percent 
A) 33 percent 
B) -33 percent 
C) 25 percent 
D) -25 percent 
E) -97 percent

Question 2

-The figure above shows the supply curve for a good with

Accepted Answer

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

Question 3

Demand for a product tends to be more elastic the longer the time period considered because

Accepted Answer

A) sellers have more time to expand production. 
B) buyers have more time to search for substitutes. 
C) price increases over time make the price larger relative to buyers' incomes. 
D) the inverse relationship between the price and the quantity demanded weakens over time. 
E) buyers get used to the new price. 
A) sellers have more time to expand production. 
B) buyers have more time to search for substitutes. 
C) price increases over time make the price larger relative to buyers' incomes. 
D) the inverse relationship between the price and the quantity demanded weakens over time. 
E) buyers get used to the new price.

Question 4

Alan purchases 10 percent fewer bags of chips when his income decreases by 5 percent.Based on only this information,we know that for Alan

Accepted Answer

A) chips are a normal good. 
B) chips are a complement to salsa. 
C) chips are a substitute for pretzels. 
D) chips are an inferior good. 
E) the price of chips fell. 
A) chips are a normal good. 
B) chips are a complement to salsa. 
C) chips are a substitute for pretzels. 
D) chips are an inferior good. 
E) the price of chips fell.

Question 5

Studies have shown that the price elasticity of demand for necessities,such as food,are higher in developing countries and lower in developed countries.What is the reason for this difference in elasticity?

Accepted Answer

One of the determinants of elasticity is

Question 6

Many manufactured goods have an ________ supply if production plans have only a short period to change and as time passes and all production adjustments are made,the supply of the good ________ from the initial response.

Accepted Answer

A) inelastic;increases 
B) elastic;decreases 
C) elastic;increases 
D) inelastic;decreases 
E) inelastic;does not change 
A) inelastic;increases 
B) elastic;decreases 
C) elastic;increases 
D) inelastic;decreases 
E) inelastic;does not change

Question 7

-In the figure above,what happens to total revenue as we move from point A to point B?

Accepted Answer

A) It increases. 
B) It decreases. 
C) It remains constant. 
D) It becomes negative. 
E) More information about the elasticity of demand is needed to determine if it increases,decreases,or does not change. 
A) It increases. 
B) It decreases. 
C) It remains constant. 
D) It becomes negative. 
E) More information about the elasticity of demand is needed to determine if it increases,decreases,or does not change.

Question 8

When hamburger is $3 per pound,Ms.Rush buys 6 pounds.When hamburger is $2 per pound,Ms.Rush buys 10 pounds.Describe Ms.Rush's demand between these two prices.

Accepted Answer

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

Question 9

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) 4;elastic 
E) 0;perfectly elastic 
A) 2;elastic 
B) 1;unit elastic 
C) 3;inelastic 
D) 4;elastic 
E) 0;perfectly elastic

Question 10

When the percentage change in the quantity demanded is less than the percentage change in price,then demand is

Accepted Answer

A) inelastic. 
B) unit elastic. 
C) elastic. 
D) irrelevant. 
E) undefined. 
A) inelastic. 
B) unit elastic. 
C) elastic. 
D) irrelevant. 
E) undefined.

Question 11

-The table above gives the supply schedule for a product.Using the midpoint method,find the price elasticity of supply between points A and B,between B and C,between C and D,and between D and E.

Accepted Answer

Between A and B,the elasticity

Question 12

Suppose the Chicago Bears football team raises ticket prices by 13 percent and as a result the quantity of tickets demanded decreases by 21 percent.This response means that the demand for Bears tickets 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 13

For a good such as food,the income elasticity is likely

Accepted Answer

A) negative. 
B) equal to zero. 
C) positive and less than one. 
D) positive and greater than one. 
E) undefined because people always buy the same amount of food. 
A) negative. 
B) equal to zero. 
C) positive and less than one. 
D) positive and greater than one. 
E) undefined because people always buy the same amount of food.

Question 14

The price elasticity of demand for Red Delicious apples,a certain type of apple,is likely

Accepted Answer

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

Question 15

When the percentage change in the quantity demanded equals the percentage change in price,then demand is

Accepted Answer

A) inelastic. 
B) unit elastic. 
C) elastic. 
D) irrelevant. 
E) undefined. 
A) inelastic. 
B) unit elastic. 
C) elastic. 
D) irrelevant. 
E) undefined.

Question 16

After long hair for men became popular,barbers found that their incomes fell.In an attempt to boost their incomes,many barbers raised the price of a haircut and yet their total revenue fell even more.What can explain this result?

Accepted Answer

A) The demand for haircuts by barbers is elastic because of many substitutes. 
B) The demand for haircuts by barbers became inelastic after the increase in price. 
C) Haircuts are inferior products. 
D) The demand for haircuts by barbers is inelastic because most people need haircuts. 
E) None of the above can explain the phenomenon. 
A) The demand for haircuts by barbers is elastic because of many substitutes. 
B) The demand for haircuts by barbers became inelastic after the increase in price. 
C) Haircuts are inferior products. 
D) The demand for haircuts by barbers is inelastic because most people need haircuts. 
E) None of the above can explain the phenomenon.

Question 17

A firm can sell 10 units if the price is $100 and can sell 8 units if the price is $125.Using the midpoint method,what is the price elasticity of demand?

Accepted Answer

A) 0.75 
B) 1.00 
C) 1.25 
D) 0.50 
E) 0.0 
A) 0.75 
B) 1.00 
C) 1.25 
D) 0.50 
E) 0.0

Question 18

In the figure above,when the price falls from $5 to $4,the price elasticity of demand is

Accepted Answer

A) 2. 
B) 3. 
C) 0.75. 
D) 1.5. 
E) 0.33. 
A) 2. 
B) 3. 
C) 0.75. 
D) 1.5. 
E) 0.33.

Question 19

As you move up along a straight-line demand curve,

Accepted Answer

A) the price elasticity of demand decreases in size. 
B) the price elasticity of demand increases in size. 
C) total revenue always decreases. 
D) total revenue always increases. 
E) total revenue never changes. 
A) the price elasticity of demand decreases in size. 
B) the price elasticity of demand increases in size. 
C) total revenue always decreases. 
D) total revenue always increases. 
E) total revenue never changes.

Question 20

If a good is inferior,then it has an income elasticity of demand that is

Accepted Answer

A) equal to zero. 
B) greater than zero. 
C) less than zero. 
D) greater than one. 
E) undefined. 
A) equal to zero. 
B) greater than zero. 
C) less than zero. 
D) greater than one. 
E) undefined.

Suppose the price of a movie falls from $9 to $7.Using the midpoint method,what is the percentage change in price?

-The figure above shows the supply curve for a good with

Demand for a product tends to be more elastic the longer the time period considered because

Alan purchases 10 percent fewer bags of chips when his income decreases by 5 percent.Based on only this information,we know that for Alan

Studies have shown that the price elasticity of demand for necessities,such as food,are higher in developing countries and lower in developed countries.What is the reason for this difference in elasticity?

Many manufactured goods have an supply if production plans have only a short period to change and as time passes and all production adjustments are made,the supply of the good from the initial response.

-In the figure above,what happens to total revenue as we move from point A to point B?

When hamburger is $3 per pound,Ms.Rush buys 6 pounds.When hamburger is $2 per pound,Ms.Rush buys 10 pounds.Describe Ms.Rush's demand between these two prices.

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

When the percentage change in the quantity demanded is less than the percentage change in price,then demand is

-The table above gives the supply schedule for a product.Using the midpoint method,find the price elasticity of supply between points A and B,between B and C,between C and D,and between D and E.

Suppose the Chicago Bears football team raises ticket prices by 13 percent and as a result the quantity of tickets demanded decreases by 21 percent.This response means that the demand for Bears tickets is

For a good such as food,the income elasticity is likely

The price elasticity of demand for Red Delicious apples,a certain type of apple,is likely

When the percentage change in the quantity demanded equals the percentage change in price,then demand is

After long hair for men became popular,barbers found that their incomes fell.In an attempt to boost their incomes,many barbers raised the price of a haircut and yet their total revenue fell even more.What can explain this result?

A firm can sell 10 units if the price is $100 and can sell 8 units if the price is $125.Using the midpoint method,what is the price elasticity of demand?

In the figure above,when the price falls from $5 to $4,the price elasticity of demand is

As you move up along a straight-line demand curve,

If a good is inferior,then it has an income elasticity of demand that is

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

Suppose the price of a movie falls from $9 to $7.Using the midpoint method,what is the percentage change in price?

-The figure above shows the supply curve for a good with

Demand for a product tends to be more elastic the longer the time period considered because

Alan purchases 10 percent fewer bags of chips when his income decreases by 5 percent.Based on only this information,we know that for Alan

Studies have shown that the price elasticity of demand for necessities,such as food,are higher in developing countries and lower in developed countries.What is the reason for this difference in elasticity?

Many manufactured goods have an ________ supply if production plans have only a short period to change and as time passes and all production adjustments are made,the supply of the good ________ from the initial response.

-In the figure above,what happens to total revenue as we move from point A to point B?

When hamburger is $3 per pound,Ms.Rush buys 6 pounds.When hamburger is $2 per pound,Ms.Rush buys 10 pounds.Describe Ms.Rush's demand between these two prices.

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

When the percentage change in the quantity demanded is less than the percentage change in price,then demand is

-The table above gives the supply schedule for a product.Using the midpoint method,find the price elasticity of supply between points A and B,between B and C,between C and D,and between D and E.

Suppose the Chicago Bears football team raises ticket prices by 13 percent and as a result the quantity of tickets demanded decreases by 21 percent.This response means that the demand for Bears tickets is

For a good such as food,the income elasticity is likely

The price elasticity of demand for Red Delicious apples,a certain type of apple,is likely

When the percentage change in the quantity demanded equals the percentage change in price,then demand is

After long hair for men became popular,barbers found that their incomes fell.In an attempt to boost their incomes,many barbers raised the price of a haircut and yet their total revenue fell even more.What can explain this result?

A firm can sell 10 units if the price is $100 and can sell 8 units if the price is $125.Using the midpoint method,what is the price elasticity of demand?

In the figure above,when the price falls from $5 to $4,the price elasticity of demand is

As you move up along a straight-line demand curve,

If a good is inferior,then it has an income elasticity of demand that is

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

Many manufactured goods have an supply if production plans have only a short period to change and as time passes and all production adjustments are made,the supply of the good from the initial response.

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