Question 1

The minimum wage is an example of a government imposed

Accepted Answer

A) price control. 
B) price ceiling. 
C) price floor. 
D) Both A and B 
E) Both A and C 
A) price control. 
B) price ceiling. 
C) price floor. 
D) Both A and B 
E) Both A and C

Question 2

Which of the following examples best illustrates the concept of derived demand?

Accepted Answer

A) An increase in the price of beef results in an increase in the demand for fish. 
B) The higher the demand for automobiles,the greater the demand for steel. 
C) The demand for Pepsi varies directly with the price of Coke. 
D) The demand for a good varies inversely with its price. 
A) An increase in the price of beef results in an increase in the demand for fish. 
B) The higher the demand for automobiles,the greater the demand for steel. 
C) The demand for Pepsi varies directly with the price of Coke. 
D) The demand for a good varies inversely with its price.

Question 3

If the price of a good is increased and total revenue received from the sale of this good increases,then the price elasticity of demand for the good is

Accepted Answer

A) elastic. 
B) inelastic. 
C) unitary. 
D) None of the above 
A) elastic. 
B) inelastic. 
C) unitary. 
D) None of the above

Question 4

If government imposes a price ceiling on a good that is below the market equilibrium price

Accepted Answer

A) a surplus will develop. 
B) a shortage will develop. 
C) producers will reduce their sales price. 
D) consumers will reduce their demand for the good. 
A) a surplus will develop. 
B) a shortage will develop. 
C) producers will reduce their sales price. 
D) consumers will reduce their demand for the good.

Question 5

$\text {Table 1}$
$\text {The following information is provided for Tony Romo's income and expenditures.}$

$$\begin{array}{l}
\underline{\text { Quantity Purchased per Month }}\
\begin{array}{ccc}
\underline{\text { Monthly Income }} & \underline{\text { Steaks }}&\underline{ \text { Pizzas } }\
\$ 2,000 & 2 & 8 \
\$ 3,000 & 4 & 6
\end{array}
\end{array}$$
-In Table 1,steaks are classified as a(n)

Accepted Answer

A) normal good. 
B) positive good. 
C) inferior good. 
D) marginal good. 
A) normal good. 
B) positive good. 
C) inferior good. 
D) marginal good.

Question 6

If the income elasticity of a particular good is negative 0.2,it would be considered

Accepted Answer

A) a superior good. 
B) a normal good. 
C) an inferior good. 
D) an elastic good. 
A) a superior good. 
B) a normal good. 
C) an inferior good. 
D) an elastic good.

Question 7

Other things remaining the same,an increase in the price of butter can be expected to

Accepted Answer

A) increase margarine sales. 
B) decrease margarine sales. 
C) increase butter sales. 
D) None of the above 
A) increase margarine sales. 
B) decrease margarine sales. 
C) increase butter sales. 
D) None of the above

Question 8

The elasticity of demand for a product is likely to be greater

Accepted Answer

A) the smaller the number of substitute products available. 
B) the smaller the proportion of one's income spent on the product. 
C) the larger the number of substitute products available. 
D) if the product is an imported good rather than a domestically produced good. 
A) the smaller the number of substitute products available. 
B) the smaller the proportion of one's income spent on the product. 
C) the larger the number of substitute products available. 
D) if the product is an imported good rather than a domestically produced good.

Question 9

The cross-price elasticity of demand for coffee and coffee-cream is likely to be

Accepted Answer

A) greater than zero. 
B) less than zero. 
C) zero. 
D) infinity. 
A) greater than zero. 
B) less than zero. 
C) zero. 
D) infinity.

The minimum wage is an example of a government imposed

Which of the following examples best illustrates the concept of derived demand?

If the price of a good is increased and total revenue received from the sale of this good increases,then the price elasticity of demand for the good is

If government imposes a price ceiling on a good that is below the market equilibrium price

$\text {Table 1}$ $\text {The following information is provided for Tony Romo's income and expenditures.}$ \ 2,000 2 8 \ 3,000 4 6 -In Table 1,steaks are classified as a(n)

If the income elasticity of a particular good is negative 0.2,it would be considered

Other things remaining the same,an increase in the price of butter can be expected to

The elasticity of demand for a product is likely to be greater

The cross-price elasticity of demand for coffee and coffee-cream is likely to be

Introduction

The Firm and Its Goals

Supply and Demand

Demand Estimation and Forecasting Appendices 5A and 5B

The Theory and Estimation of Production Appendices 6A,6B,and 6C

The Theory and Estimation of Cost Appendices 7A,7B,and 7C

Pricing and Output Decisions: Perfect Competition and Monopoly Appendices 8A and 8B

Pricing and Output Decisions: Monopolistic Competition and Oligopoly

Special Pricing Practices

Game Theory and Asymmetric Information

Capital Budgeting and Risk

The Multinational Corporation in a Global Setting

Government and Industry: Challenges and Opportunities for Todays Manager

The Global Soft Drink Industry

Filters

Exam 4: Demand Elasticity

The minimum wage is an example of a government imposed

Which of the following examples best illustrates the concept of derived demand?

If the price of a good is increased and total revenue received from the sale of this good increases,then the price elasticity of demand for the good is

If government imposes a price ceiling on a good that is below the market equilibrium price

If the income elasticity of a particular good is negative 0.2,it would be considered

Other things remaining the same,an increase in the price of butter can be expected to

The elasticity of demand for a product is likely to be greater

The cross-price elasticity of demand for coffee and coffee-cream is likely to be

Introduction

The Firm and Its Goals

Supply and Demand

Demand Estimation and Forecasting Appendices 5A and 5B

The Theory and Estimation of Production Appendices 6A,6B,and 6C

The Theory and Estimation of Cost Appendices 7A,7B,and 7C

Pricing and Output Decisions: Perfect Competition and Monopoly Appendices 8A and 8B

Pricing and Output Decisions: Monopolistic Competition and Oligopoly

Special Pricing Practices

Game Theory and Asymmetric Information

Capital Budgeting and Risk

The Multinational Corporation in a Global Setting

Government and Industry: Challenges and Opportunities for Todays Manager

The Global Soft Drink Industry

Filters