Question 1

When the demand curve is vertical

Accepted Answer

A)   the price elasticity of demand is negative.
B)   the price elasticity of demand is positive.
C)   the demand for the good is perfectly elastic.
D)   the price elasticity of demand is equal to zero.
E)   the price elasticity of demand is equal to -1.

Question 2

When the price of a basketball is $15,the quantity supplied is 5,000.When the price increases to $20,the quantity supplied is 10,000.The price elasticity of supply is

Accepted Answer

A)   2.33.
B)   0.67.
C)   0.33.
D)   0.43.
E)   0.29.

Question 3

The government estimates that the demand curve for DVDs is represented by the equation Qd= -5P + 20.
a.Graph the demand curve.
b.Using prices of $2 and $3,determine the price elasticity of demand.

Accepted Answer

a. <img  loading="lazy" src="/assets/images/blured-textbook.svg" class="d-inline m-1" alt="blured image" width="139" height="30"> b.At price =$2,quantity de...

Question 4

Demand is almost always more price elastic in the long run because

Accepted Answer

A)   people's preferences change.
B)   newer versions of a good or service replace older ones.
C)   production of the good or service stops.
D)   more options become available and people can make different choices.
E)   government regulations increase.

Question 5

When the price of pencils increases from $1.50 to $2.50,there is an increase in quantity demanded of pens from 100 to 150.The cross-price elasticity of demand between pencils and pens is

Accepted Answer

A)   1.25.
B)   0.50.
C)   0.40.
D)   0.80.
E)   0.75.

Question 6

When two goods are unrelated then

Accepted Answer

A)   cross-price elasticity of demand will be zero.
B)   cross-price elasticity of demand will be positive.
C)   cross-price elasticity of demand will be negative.
D)   the demand for both goods will be elastic.
E)   cross-price elasticity of demand will be infinite.

Question 7

The price elasticity supply of doctors could be considered ________ because it takes a minimum of four to six years of training to be able to work as a physician.

Accepted Answer

A)   perfectly elastic
B)   unitary elastic
C)   relatively inelastic
D)   relatively elastic
E)   perfectly inelastic

Question 8

When incomes fall by 20 percent,quantity demanded of specialty baked goods falls by 50 percent.Specialty baked goods are

Accepted Answer

A)   inferior goods.
B)   necessities.
C)   substitutes for mass-produced bread.
D)   luxuries.
E)   complements to butter.

Question 9

When two goods are complements to each other,the cross-price elasticity will

Accepted Answer

A)   begin by being positive but becomes negative over time.
B)   be unaffected by goods being complements.
C)   be zero.
D)   be positive.
E)   be negative.

Question 10

Super Economy Brand products have an income elasticity of -1.4.Thus,these are ________ goods.

Accepted Answer

A)   necessity
B)   inferior
C)   luxury
D)   normal
E)   complementary

Question 11

The price elasticity of demand is always

Accepted Answer

A)   positive.
B)   negative.
C)   equal to -1.
D)   equal to zero.
E)   equal to infinity.

Question 12

A professional hockey arena has a maximum seating capacity of 20,000 people.The price elasticity of supply is

Accepted Answer

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

Question 13

To keep the percentage change in quantity demanded equally proportional to the percentage change in price when the prices rise by 5 percent,a consumer would need to ________ quantity demanded by ________.

Accepted Answer

A)   increase; 5 percent
B)   decrease; 5 percent
C)   increase; 10 percent
D)   decrease; 10 percent
E)   increase; 2 percent

Question 14

Graph the following situations:
a.Brenda's cats love Kitty Kat Treats,and she will buy as much as the store has at the current price of $2.But when the price of Kitty Kat Treats increases by even 5 cents,she won't buy any!
b.Brenda will buy 20 bags of Kitty Kat Treats at any price.
c.If the price of Kitty Kat Treats rises by 5 percent,Brenda will decrease her quantity demanded by 10 percent.

Accepted Answer

a. <img  loading="lazy" src="/assets/images/blured-textbook.svg" class="d-inline m-1" alt="blured image" width="139" height="30"> This situation illustrates perfectly...

Question 15

If the cross-price elasticity of demand between Good A and Good B is 3,the price of Good B increases,and the price elasticity of demand for Good B is inelastic,we can expect to see a(n) ________ change in the quantity demanded for Good A.

Accepted Answer

A)   zero
B)   small
C)   infinite
D)   one-for-one
E)   large

Question 16

A producer knows that the price elasticity for his product is -0.5.He wants to increase quantity demanded by 30 percent.By what percentage does he need to change the price?

Accepted Answer

A)   10 percent
B)   6 percent
C)   -9.5 percent
D)   -60 percent
E)   -6 percent

Question 17

From the accompanying table,we would expect that,for recreational skaters,the price elasticity of demand for ice skates between $10 and $20 to be ________ than that of hockey players because ________.

Accepted Answer

A)   more elastic; ice skates are a normal good
B)   less elastic; ice skates are an inferior good
C)   the same; they both skate
D)   more elastic; recreational skaters can substitute other activities
E)   less elastic; hockey players need skates

Question 18

We would expect to see a positive cross-price elasticity between

Accepted Answer

A)   peanut butter and jelly.
B)   ice cream and frozen yogurt.
C)   basketballs and steak.
D)   sneakers and socks.
E)   computers and iPods.

Question 19

Used car dealers find that their sales rise in a recession.We can be certain that consumers view used cars as

Accepted Answer

A)   necessities.
B)   normal goods.
C)   luxuries.
D)   substitutes.
E)   inferior.

Question 20

Masielle's Furniture produces high-quality wooden bedroom sets that take approximately four months to make,from start to finish.The price elasticity of supply for these bedroom sets in the short term is

Accepted Answer

A)   unitary elastic.
B)   relatively inelastic.
C)   perfectly inelastic.
D)   relatively elastic.
E)   perfectly elastic.

Exam 4: Elasticity

Super Economy Brand products have an income elasticity of -1.4.Thus,these are ________ goods.

Correct Answer
verified

When the demand curve is vertical

Correct Answer
verified

The government estimates that the demand curve for DVDs is represented by the equation Q_d= -5P + 20. a.Graph the demand curve. b.Using prices of $2 and $3,determine the price elasticity of demand.

Correct Answer
verified
a. b.At price =$2,quantity de...
View Answer

A professional hockey arena has a maximum seating capacity of 20,000 people.The price elasticity of supply is

Correct Answer
verified

When the price of pencils increases from $1.50 to $2.50,there is an increase in quantity demanded of pens from 100 to 150.The cross-price elasticity of demand between pencils and pens is

Correct Answer
verified

When the price of a basketball is $15,the quantity supplied is 5,000.When the price increases to $20,the quantity supplied is 10,000.The price elasticity of supply is

Correct Answer
verified

The price elasticity supply of doctors could be considered ________ because it takes a minimum of four to six years of training to be able to work as a physician.

Correct Answer
verified

When two goods are complements to each other,the cross-price elasticity will

Correct Answer
verified

When incomes fall by 20 percent,quantity demanded of specialty baked goods falls by 50 percent.Specialty baked goods are

Correct Answer
verified

A producer knows that the price elasticity for his product is -0.5.He wants to increase quantity demanded by 30 percent.By what percentage does he need to change the price?

Correct Answer
verified

Demand is almost always more price elastic in the long run because

Correct Answer
verified

We would expect to see a positive cross-price elasticity between

Correct Answer
verified

If the cross-price elasticity of demand between Good A and Good B is 3,the price of Good B increases,and the price elasticity of demand for Good B is inelastic,we can expect to see a(n) ________ change in the quantity demanded for Good A.

Correct Answer
verified

Used car dealers find that their sales rise in a recession.We can be certain that consumers view used cars as

Correct Answer
verified

Correct Answer
verified
a. This situation illustrates perfectly...
View Answer

From the accompanying table,we would expect that,for recreational skaters,the price elasticity of demand for ice skates between $10 and $20 to be than that of hockey players because .

Correct Answer
verified

To keep the percentage change in quantity demanded equally proportional to the percentage change in price when the prices rise by 5 percent,a consumer would need to quantity demanded by .

Correct Answer
verified

When two goods are unrelated then

Correct Answer
verified

Masielle's Furniture produces high-quality wooden bedroom sets that take approximately four months to make,from start to finish.The price elasticity of supply for these bedroom sets in the short term is

Correct Answer
verified

The price elasticity of demand is always

Correct Answer
verified

Exam 4: Elasticity

Super Economy Brand products have an income elasticity of -1.4.Thus,these are ________ goods.

Correct AnswerverifiedShow Answer

When the demand curve is vertical

Correct AnswerverifiedShow Answer

The government estimates that the demand curve for DVDs is represented by the equation Qd= -5P + 20. a.Graph the demand curve. b.Using prices of $2 and $3,determine the price elasticity of demand.

Correct Answerverifieda. b.At price =$2,quantity de...View AnswerShow Answer

A professional hockey arena has a maximum seating capacity of 20,000 people.The price elasticity of supply is

Correct AnswerverifiedShow Answer

When the price of pencils increases from $1.50 to $2.50,there is an increase in quantity demanded of pens from 100 to 150.The cross-price elasticity of demand between pencils and pens is

Correct AnswerverifiedShow Answer

When the price of a basketball is $15,the quantity supplied is 5,000.When the price increases to $20,the quantity supplied is 10,000.The price elasticity of supply is

Correct AnswerverifiedShow Answer

The price elasticity supply of doctors could be considered ________ because it takes a minimum of four to six years of training to be able to work as a physician.

Correct AnswerverifiedShow Answer

When two goods are complements to each other,the cross-price elasticity will

Correct AnswerverifiedShow Answer

When incomes fall by 20 percent,quantity demanded of specialty baked goods falls by 50 percent.Specialty baked goods are

Correct AnswerverifiedShow Answer

A producer knows that the price elasticity for his product is -0.5.He wants to increase quantity demanded by 30 percent.By what percentage does he need to change the price?

Correct AnswerverifiedShow Answer

Demand is almost always more price elastic in the long run because

Correct AnswerverifiedShow Answer

We would expect to see a positive cross-price elasticity between

Correct AnswerverifiedShow Answer

If the cross-price elasticity of demand between Good A and Good B is 3,the price of Good B increases,and the price elasticity of demand for Good B is inelastic,we can expect to see a(n) ________ change in the quantity demanded for Good A.

Correct AnswerverifiedShow Answer

Used car dealers find that their sales rise in a recession.We can be certain that consumers view used cars as

Correct AnswerverifiedShow Answer

Correct Answerverifieda. This situation illustrates perfectly...View AnswerShow Answer

From the accompanying table,we would expect that,for recreational skaters,the price elasticity of demand for ice skates between $10 and $20 to be ________ than that of hockey players because ________.

Correct AnswerverifiedShow Answer

To keep the percentage change in quantity demanded equally proportional to the percentage change in price when the prices rise by 5 percent,a consumer would need to ________ quantity demanded by ________.

Correct AnswerverifiedShow Answer

When two goods are unrelated then

Correct AnswerverifiedShow Answer

Masielle's Furniture produces high-quality wooden bedroom sets that take approximately four months to make,from start to finish.The price elasticity of supply for these bedroom sets in the short term is

Correct AnswerverifiedShow Answer

The price elasticity of demand is always

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

The government estimates that the demand curve for DVDs is represented by the equation Q_d= -5P + 20. a.Graph the demand curve. b.Using prices of $2 and $3,determine the price elasticity of demand.

Correct Answer
verified
a. b.At price =$2,quantity de...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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a. This situation illustrates perfectly...
View Answer

From the accompanying table,we would expect that,for recreational skaters,the price elasticity of demand for ice skates between $10 and $20 to be than that of hockey players because .

Correct Answer
verified

To keep the percentage change in quantity demanded equally proportional to the percentage change in price when the prices rise by 5 percent,a consumer would need to quantity demanded by .

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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