Question 1

If the price elasticity of demand for moose hunting lessons is 4.23,then the demand for moose hunting lessons is

Accepted Answer

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

Question 2

If a lower price for a Pepsi decreases the demand for a Coke,the cross elasticity value for Pepsi and Coke is

Accepted Answer

A) definitely negative. 
B) definitely equal to zero. 
C) definitely positive. 
D) definitely greater than one. 
E) possibly negative,positive,or zero,but there is not enough information to decide. 
A) definitely negative. 
B) definitely equal to zero. 
C) definitely positive. 
D) definitely greater than one. 
E) possibly negative,positive,or zero,but there is not enough information to decide.

Question 3

If the price increases by 20 percent and the quantity supplied increases by 40 percent,what does the elasticity of supply equal?

Accepted Answer

The price elasticity of supply

Question 4

The income elasticity of demand is a measure of

Accepted Answer

A) how demand for a product changes when the price of a substitute or complement product changes. 
B) how responsive consumers are to changes in the price of a product. 
C) how responsive suppliers are to changes in the price of a product. 
D) the extent to which the demand for a good changes when income changes. 
E) the extent to which the supply of a good changes when the demand changes as a result of a change in income. 
A) how demand for a product changes when the price of a substitute or complement product changes. 
B) how responsive consumers are to changes in the price of a product. 
C) how responsive suppliers are to changes in the price of a product. 
D) the extent to which the demand for a good changes when income changes. 
E) the extent to which the supply of a good changes when the demand changes as a result of a change in income.

Question 5

If a product is an inferior good,then its income elasticity of demand is

Accepted Answer

A) zero. 
B) positive. 
C) negative. 
D) indeterminate. 
E) undefined. 
A) zero. 
B) positive. 
C) negative. 
D) indeterminate. 
E) undefined.

Question 6

Suppose the University of Oklahoma increases the price of student football tickets for the 2012 season by 30 percent.If the price elasticity of demand for student tickets is 1.22,the price increase leads to

Accepted Answer

A) a 36.6 percent decrease in the quantity demanded. 
B) a 30 percent decrease in the quantity demanded. 
C) a 1.22 percent decrease in the quantity demanded. 
D) a 28.78 percent decrease in the quantity demanded. 
E) no change in the quantity demanded. 
A) a 36.6 percent decrease in the quantity demanded. 
B) a 30 percent decrease in the quantity demanded. 
C) a 1.22 percent decrease in the quantity demanded. 
D) a 28.78 percent decrease in the quantity demanded. 
E) no change in the quantity demanded.

Question 7

The income elasticity of demand for foreign travel

Accepted Answer

A) is likely to be smaller than the income elasticity of demand for food. 
B) is likely to be larger than the income elasticity of demand for food. 
C) cannot be compared to the income elasticity of demand for food. 
D) is likely to be inelastic. 
E) is likely to be negative. 
A) is likely to be smaller than the income elasticity of demand for food. 
B) is likely to be larger than the income elasticity of demand for food. 
C) cannot be compared to the income elasticity of demand for food. 
D) is likely to be inelastic. 
E) is likely to be negative.

Question 8

-The figure above shows the demand curve for pizza.Using the midpoint method and moving from point A to point B,calculate the
a.percentage change in price.
b.percentage change in quantity demanded.
c.price elasticity of demand.

Accepted Answer

a.Between points A and B,the p

Question 9

When income increases from $30,000 a year to $40,000 a year,the quantity demanded of weekend vacations by Sara increases from 2 a year to 5 a year.For Sara,the income elasticity of demand of weekend vacations is ________ and weekend vacations are ________ good.

Accepted Answer

A) 3;a normal 
B) 4.5 a normal 
C) 1/3;an inferior 
D) -4.5;an inferior 
E) 1/3;a normal 
A) 3;a normal 
B) 4.5 a normal 
C) 1/3;an inferior 
D) -4.5;an inferior 
E) 1/3;a normal

Question 10

Which of the following is correct?

Accepted Answer

A) The cross elasticity of demand for substitute goods is positive. 
B) The cross elasticity of demand for substitute goods is negative. 
C) The cross elasticity of demand equals the percentage change in demand divided by the percentage change in income. 
D) The income elasticity of demand for a normal good is negative. 
E) The cross elasticity of demand for normal goods is positive. 
A) The cross elasticity of demand for substitute goods is positive. 
B) The cross elasticity of demand for substitute goods is negative. 
C) The cross elasticity of demand equals the percentage change in demand divided by the percentage change in income. 
D) The income elasticity of demand for a normal good is negative. 
E) The cross elasticity of demand for normal goods is positive.

Question 11

When we use the midpoint method to compute the price elasticity of demand we use

Accepted Answer

A) the original quantity and the average price. 
B) the original price and the average quantity. 
C) the average price and the average quantity. 
D) either the original or new price,and the average quantity. 
E) the average price and the original quantity. 
A) the original quantity and the average price. 
B) the original price and the average quantity. 
C) the average price and the average quantity. 
D) either the original or new price,and the average quantity. 
E) the average price and the original quantity.

Question 12

The income elasticity of demand for movies in the United States is 3.41.If people's incomes decrease by 1 percent,what is the decrease in the quantity of movies demanded?

Accepted Answer

The income elasticity of demand = (perce

Question 13

Which is larger: The price elasticity of demand for food or the price elasticity of demand for oranges? Why?

Accepted Answer

The price elasticity of demand for orang

Question 14

If the price of a good decreases from $9 to $6 and the quantity supplied decreases from 1,500 to 1,300,using the midpoint formula the elasticity of supply equals

Accepted Answer

A) 0.20. 
B) 2.80. 
C) 0.36. 
D) 0.40. 
E) 3.20. 
A) 0.20. 
B) 2.80. 
C) 0.36. 
D) 0.40. 
E) 3.20.

Question 15

If the demand for a good is elastic,then

Accepted Answer

A) people do not change the quantity they demand when the price of the good changes. 
B) a change in price leads to a smaller percentage change in the quantity demanded. 
C) people substantially decrease the quantity of the good they buy if its price increases by a small percentage. 
D) a change in the quantity demanded is smaller than the change in price. 
E) the quantity demanded divided by the price exceeds 1.00. 
A) people do not change the quantity they demand when the price of the good changes. 
B) a change in price leads to a smaller percentage change in the quantity demanded. 
C) people substantially decrease the quantity of the good they buy if its price increases by a small percentage. 
D) a change in the quantity demanded is smaller than the change in price. 
E) the quantity demanded divided by the price exceeds 1.00.

Question 16

If the cross elasticity of demand between two goods is negative,are the goods substitutes or complements?

Accepted Answer

If the cross elastic

Question 17

The income elasticity of demand for skiing trips to Vermont is greater than one.Thus a trip to Vermont for skiing is ________ good.

Accepted Answer

A) a normal 
B) an inferior 
C) a unit elastic 
D) a price elastic 
E) a price inelastic 
A) a normal 
B) an inferior 
C) a unit elastic 
D) a price elastic 
E) a price inelastic

Question 18

Moving downward along a linear (straight-line)downward sloping demand curve,the

Accepted Answer

A) slope is constant. 
B) price is constant. 
C) quantity is constant. 
D) elasticity is constant. 
E) None of the above answers is correct. 
A) slope is constant. 
B) price is constant. 
C) quantity is constant. 
D) elasticity is constant. 
E) None of the above answers is correct.

Question 19

If the price elasticity of demand for gasoline equals 0.3,then an increase in the price of a gallon of gasoline from $3.70 to $3.90

Accepted Answer

A) decreases total revenue. 
B) increases total revenue. 
C) leads to no change in total revenue. 
D) makes the demand for gasoline elastic. 
E) Both answers B and D are correct. 
A) decreases total revenue. 
B) increases total revenue. 
C) leads to no change in total revenue. 
D) makes the demand for gasoline elastic. 
E) Both answers B and D are correct.

Question 20

When the price of going to a movie rises 5 percent,the quantity of DVDs demanded increases 10 percent.The cross elasticity of demand equals

Accepted Answer

A) 10.0. 
B) 0.50. 
C) -0.50. 
D) -2.0. 
E) 2.0. 
A) 10.0. 
B) 0.50. 
C) -0.50. 
D) -2.0. 
E) 2.0.

If the price elasticity of demand for moose hunting lessons is 4.23,then the demand for moose hunting lessons is

If a lower price for a Pepsi decreases the demand for a Coke,the cross elasticity value for Pepsi and Coke is

If the price increases by 20 percent and the quantity supplied increases by 40 percent,what does the elasticity of supply equal?

The income elasticity of demand is a measure of

If a product is an inferior good,then its income elasticity of demand is

Suppose the University of Oklahoma increases the price of student football tickets for the 2012 season by 30 percent.If the price elasticity of demand for student tickets is 1.22,the price increase leads to

The income elasticity of demand for foreign travel

-The figure above shows the demand curve for pizza.Using the midpoint method and moving from point A to point B,calculate the a.percentage change in price. b.percentage change in quantity demanded. c.price elasticity of demand.

When income increases from $30,000 a year to $40,000 a year,the quantity demanded of weekend vacations by Sara increases from 2 a year to 5 a year.For Sara,the income elasticity of demand of weekend vacations is and weekend vacations are good.

Which of the following is correct?

When we use the midpoint method to compute the price elasticity of demand we use

The income elasticity of demand for movies in the United States is 3.41.If people's incomes decrease by 1 percent,what is the decrease in the quantity of movies demanded?

Which is larger: The price elasticity of demand for food or the price elasticity of demand for oranges? Why?

If the price of a good decreases from $9 to $6 and the quantity supplied decreases from 1,500 to 1,300,using the midpoint formula the elasticity of supply equals

If the demand for a good is elastic,then

If the cross elasticity of demand between two goods is negative,are the goods substitutes or complements?

The income elasticity of demand for skiing trips to Vermont is greater than one.Thus a trip to Vermont for skiing is ________ good.

Moving downward along a linear (straight-line)downward sloping demand curve,the

If the price elasticity of demand for gasoline equals 0.3,then an increase in the price of a gallon of gasoline from $3.70 to $3.90

When the price of going to a movie rises 5 percent,the quantity of DVDs demanded increases 10 percent.The cross elasticity of demand equals

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 elasticity of demand for moose hunting lessons is 4.23,then the demand for moose hunting lessons is

If a lower price for a Pepsi decreases the demand for a Coke,the cross elasticity value for Pepsi and Coke is

If the price increases by 20 percent and the quantity supplied increases by 40 percent,what does the elasticity of supply equal?

The income elasticity of demand is a measure of

If a product is an inferior good,then its income elasticity of demand is

Suppose the University of Oklahoma increases the price of student football tickets for the 2012 season by 30 percent.If the price elasticity of demand for student tickets is 1.22,the price increase leads to

The income elasticity of demand for foreign travel

-The figure above shows the demand curve for pizza.Using the midpoint method and moving from point A to point B,calculate the a.percentage change in price. b.percentage change in quantity demanded. c.price elasticity of demand.

When income increases from $30,000 a year to $40,000 a year,the quantity demanded of weekend vacations by Sara increases from 2 a year to 5 a year.For Sara,the income elasticity of demand of weekend vacations is ________ and weekend vacations are ________ good.

Which of the following is correct?

When we use the midpoint method to compute the price elasticity of demand we use

The income elasticity of demand for movies in the United States is 3.41.If people's incomes decrease by 1 percent,what is the decrease in the quantity of movies demanded?

Which is larger: The price elasticity of demand for food or the price elasticity of demand for oranges? Why?

If the price of a good decreases from $9 to $6 and the quantity supplied decreases from 1,500 to 1,300,using the midpoint formula the elasticity of supply equals

If the demand for a good is elastic,then

If the cross elasticity of demand between two goods is negative,are the goods substitutes or complements?

The income elasticity of demand for skiing trips to Vermont is greater than one.Thus a trip to Vermont for skiing is ________ good.

Moving downward along a linear (straight-line)downward sloping demand curve,the

If the price elasticity of demand for gasoline equals 0.3,then an increase in the price of a gallon of gasoline from $3.70 to $3.90

When the price of going to a movie rises 5 percent,the quantity of DVDs demanded increases 10 percent.The cross elasticity of demand equals

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

When income increases from $30,000 a year to $40,000 a year,the quantity demanded of weekend vacations by Sara increases from 2 a year to 5 a year.For Sara,the income elasticity of demand of weekend vacations is and weekend vacations are good.