Exam 5: Elasticities of Demand and Supply

A Minnesota snowmobile dealer lowers its prices in February by 16 percent and the quantity demanded increases by 2 percent.Thus the demand for snowmobiles from this dealer is and the dealer's total revenue will .

(Multiple Choice)

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Question 141

If a substitute good is easy to find,then demand for a good is

(Multiple Choice)

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Question 142

Products X,Y,and Z have price elasticities of 3.0,0.80,and 1.0 respectively.Total revenue decreases if the price of

(Multiple Choice)

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Question 143

The figure above shows the supply curve for roses. -In the figure above,at the point where the price is $50 per bunch,the price elasticity of supply is

(Multiple Choice)

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Question 144

If a good is a necessity,it has substitutes and its demand is .

(Multiple Choice)

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Question 145

-The table above gives Sharon's demand for ground beef at two different income levels.Use the midpoint method in this problem. a.What is the percentage change in Sharon's income? b.What is the percentage change in the quantity demanded? c.What is Sharon's income elasticity of demand for ground beef? d.Is ground beef a normal or an inferior good for Sharon?

(Essay)

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Question 146

-In the figure above,using the midpoint method,the price elasticity of demand when the price falls from $8 to $7 is equal to

(Multiple Choice)

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Question 147

Suppose the price elasticity of demand for bouquets of flowers is 4.0.You are charging $8 per bouquet.If you want to increase the quantity of bouquets you sell by 20 percent,what price should you charge?

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Question 148

If the quantity supplied increases by 8 percent when the price rises by 2 percent,the price elasticity of supply is ________.

(Multiple Choice)

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Question 149

If the price of a product increases by 5 percent and the quantity demanded decreases by 5 percent,then the elasticity of demand is

(Multiple Choice)

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Question 150

If income increases from $50,000 to $60,000 while the demand for a good increases from 100 units to 125 units,what is the income elasticity of demand? Is the good a normal good or an inferior good?

(Essay)

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Question 151

An inferior good has a ________ elasticity of demand.

(Multiple Choice)

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Question 152

A firm raises the price it charges.The firm's total revenue does not change.What can we conclude about the price elasticity of demand?

(Multiple Choice)

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Question 153

Which of the following is true? I.The demand for a good is elastic if when its price changes,the percentage change in the quantity demanded exceeds the percentage change in price. Ii.Price elasticity of demand equals the percentage change in price divided by the percentage change in the quantity demanded. Iii.If demand is price inelastic,a rise in price leads to a decrease in total revenue.

(Multiple Choice)

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Question 154

A product that has a negative income elasticity of demand is ________ good.

(Multiple Choice)

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Question 155

If the supply of a good decreases and it causes total revenue to increase,this shows that the good has an

(Multiple Choice)

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Question 156

If a 10 percent increase in income leads to a 5 percent decrease in the demand for a good,the income elasticity of demand equals and the good is good.

(Multiple Choice)

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Question 157

If the price elasticity of supply for a good is 10,then supply is

(Multiple Choice)

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Question 158

Suppose a decrease in demand causes the price to decrease from $4 to $3 and the quantity to decrease from 1,000 to 700.Using the midpoint method,the elasticity of supply equals

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Question 159

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

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Question 160

Showing 141 - 160 of 342

A Minnesota snowmobile dealer lowers its prices in February by 16 percent and the quantity demanded increases by 2 percent.Thus the demand for snowmobiles from this dealer is and the dealer's total revenue will .

If a substitute good is easy to find,then demand for a good is

Products X,Y,and Z have price elasticities of 3.0,0.80,and 1.0 respectively.Total revenue decreases if the price of

The figure above shows the supply curve for roses. -In the figure above,at the point where the price is $50 per bunch,the price elasticity of supply is

If a good is a necessity,it has substitutes and its demand is .

-In the figure above,using the midpoint method,the price elasticity of demand when the price falls from $8 to $7 is equal to

Suppose the price elasticity of demand for bouquets of flowers is 4.0.You are charging $8 per bouquet.If you want to increase the quantity of bouquets you sell by 20 percent,what price should you charge?

If the quantity supplied increases by 8 percent when the price rises by 2 percent,the price elasticity of supply is ________.

If the price of a product increases by 5 percent and the quantity demanded decreases by 5 percent,then the elasticity of demand is

If income increases from $50,000 to $60,000 while the demand for a good increases from 100 units to 125 units,what is the income elasticity of demand? Is the good a normal good or an inferior good?

An inferior good has a ________ elasticity of demand.

A firm raises the price it charges.The firm's total revenue does not change.What can we conclude about the price elasticity of demand?

A product that has a negative income elasticity of demand is ________ good.

If the supply of a good decreases and it causes total revenue to increase,this shows that the good has an

If a 10 percent increase in income leads to a 5 percent decrease in the demand for a good,the income elasticity of demand equals and the good is good.

If the price elasticity of supply for a good is 10,then supply is

Suppose a decrease in demand causes the price to decrease from $4 to $3 and the quantity to decrease from 1,000 to 700.Using the midpoint method,the elasticity of supply equals

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

A Minnesota snowmobile dealer lowers its prices in February by 16 percent and the quantity demanded increases by 2 percent.Thus the demand for snowmobiles from this dealer is ________ and the dealer's total revenue will ________.

If a substitute good is easy to find,then demand for a good is

Products X,Y,and Z have price elasticities of 3.0,0.80,and 1.0 respectively.Total revenue decreases if the price of

The figure above shows the supply curve for roses. -In the figure above,at the point where the price is $50 per bunch,the price elasticity of supply is

If a good is a necessity,it has ________ substitutes and its demand is ________.

-In the figure above,using the midpoint method,the price elasticity of demand when the price falls from $8 to $7 is equal to

Suppose the price elasticity of demand for bouquets of flowers is 4.0.You are charging $8 per bouquet.If you want to increase the quantity of bouquets you sell by 20 percent,what price should you charge?

If the quantity supplied increases by 8 percent when the price rises by 2 percent,the price elasticity of supply is ________.

If the price of a product increases by 5 percent and the quantity demanded decreases by 5 percent,then the elasticity of demand is

If income increases from $50,000 to $60,000 while the demand for a good increases from 100 units to 125 units,what is the income elasticity of demand? Is the good a normal good or an inferior good?

An inferior good has a ________ elasticity of demand.

A firm raises the price it charges.The firm's total revenue does not change.What can we conclude about the price elasticity of demand?

A product that has a negative income elasticity of demand is ________ good.

If the supply of a good decreases and it causes total revenue to increase,this shows that the good has an

If a 10 percent increase in income leads to a 5 percent decrease in the demand for a good,the income elasticity of demand equals ________ and the good is ________ good.

If the price elasticity of supply for a good is 10,then supply is

Suppose a decrease in demand causes the price to decrease from $4 to $3 and the quantity to decrease from 1,000 to 700.Using the midpoint method,the elasticity of supply equals

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

A Minnesota snowmobile dealer lowers its prices in February by 16 percent and the quantity demanded increases by 2 percent.Thus the demand for snowmobiles from this dealer is and the dealer's total revenue will .

If a good is a necessity,it has substitutes and its demand is .

If a 10 percent increase in income leads to a 5 percent decrease in the demand for a good,the income elasticity of demand equals and the good is good.