Filters
Question type
Study Flashcards

-Refer to the graph above to answer this question.What is the supply elasticity of S<sub>2</sub> in the $2.50 to $4.00 range? A) 1.15. B) 2.17. C) It is higher than the supply elasticity of S<sub>1</sub> in the same price range. D) It is lower than the supply elasticity of S<sub>1</sub> in the same price range. E) None of the choices are correct. -Refer to the graph above to answer this question.What is the supply elasticity of S2 in the $2.50 to $4.00 range?


A) 1.15.
B) 2.17.
C) It is higher than the supply elasticity of S1 in the same price range.
D) It is lower than the supply elasticity of S1 in the same price range.
E) None of the choices are correct.

Correct Answer

verifed

verified

If income elasticity is positive,we could conclude that the product in question is an inferior good.

Correct Answer

verifed

verified

What do products such as movies,tomatoes and restaurant meals have in common?


A) They are all inferior goods.
B) They all are likely to have incomes elasticities less than one.
C) The demand for all three goods is price elastic.
D) The demand for all three goods is price inelastic.
E) They all have a small number of substitute goods.

Correct Answer

verifed

verified

During an economic slowdown,should investors invest in an industry that produces goods whose demand is income elastic or income inelastic?

Correct Answer

verifed

verified

An industry that produces a good whose d...

View Answer

Below is a graphical representation of the wheat market in the distant land of Nod. Below is a graphical representation of the wheat market in the distant land of Nod. -Refer to the graph above to answer this question.If supply was increased by 30 million bushels,what would be the new equilibrium price and quantity? A) $3 and 20 million bushels. B) $3 and 50 million bushels. C) $3 and 70 million bushels. D) $7 and 30 million bushels. E) $7 and 60 million bushels. -Refer to the graph above to answer this question.If supply was increased by 30 million bushels,what would be the new equilibrium price and quantity?


A) $3 and 20 million bushels.
B) $3 and 50 million bushels.
C) $3 and 70 million bushels.
D) $7 and 30 million bushels.
E) $7 and 60 million bushels.

Correct Answer

verifed

verified

Suppose the demand for Good X is unit elastic.If the price of Good X is $10 the quantity traded is 300.How many units will be traded if the price is $25? Explain.

Correct Answer

verifed

verified

120 units.If Good X is unit elastic,a ch...

View Answer

Below are two sets of prices and their related quantities demanded? Below are two sets of prices and their related quantities demanded? -Refer to Table 4.10 to answer this question.What is the price elasticity for the product represented by Set I? A) 0.002. B) 0.5. C) 2.3. D) 400. -Refer to Table 4.10 to answer this question.What is the price elasticity for the product represented by Set I?


A) 0.002.
B) 0.5.
C) 2.3.
D) 400.

Correct Answer

verifed

verified

On what type of products do governments impose "sin" taxes?


A) On products with elastic demand such as candy.
B) On products with inelastic demand such as alcohol.
C) On illegal products.
D) On consumer goods but not capital goods.

Correct Answer

verifed

verified

What is the main determinant of the price elasticity of supply?

Correct Answer

verifed

verified

Time is the main determinant of supply e...

View Answer

A straight-line (constant-sloped)demand curve does not imply constant elasticity.

Correct Answer

verifed

verified

What is the elasticity of supply of seats for a one-night concert in an auditorium?


A) It is elastic.
B) It is inelastic.
C) It is perfectly inelastic.
D) It is perfectly elastic.

Correct Answer

verifed

verified

Below are some data on price,income and demand for five different time periods. Below are some data on price,income and demand for five different time periods. -Refer to the information above to answer this question.What is the price elasticity of demand for product Y between years 2 and 3? A) 0.18. B) 0.24. C) 3.00. D) 4.09. E) Infinity. -Refer to the information above to answer this question.What is the price elasticity of demand for product Y between years 2 and 3?


A) 0.18.
B) 0.24.
C) 3.00.
D) 4.09.
E) Infinity.

Correct Answer

verifed

verified

-Refer to the information above to answer this question.Over what price range is demand inelastic? A) $14 to $16. B) $14 to $18. C) $16 to $18. D) $18 to $20. E) $18 to $22. -Refer to the information above to answer this question.Over what price range is demand inelastic?


A) $14 to $16.
B) $14 to $18.
C) $16 to $18.
D) $18 to $20.
E) $18 to $22.

Correct Answer

verifed

verified

Under which of the following situations will total revenue fall?


A) If elasticity is > 1 and price falls.
B) If elasticity is > 1 and price rises.
C) If elasticity is < 1 and price rises.
D) If elasticity is = 1 and price falls.

Correct Answer

verifed

verified

Suppose that the value of the price elasticity of demand for a product is 2 and its price increases by 16%.What will happen to the quantity demanded?


A) It will increase by 8%.
B) It will increase by 32%.
C) It will decrease by 8%.
D) It will decrease by 32%.
E) It cannot be determined without further information.

Correct Answer

verifed

verified

Below are some data on price,income and demand for five different time periods. Below are some data on price,income and demand for five different time periods. -Refer to the information above to answer this question.What is the price elasticity of demand for product Y between years 3 and 4? A) 0.89. B) 1.13. C) 2.67. D) None of the choices are correct. -Refer to the information above to answer this question.What is the price elasticity of demand for product Y between years 3 and 4?


A) 0.89.
B) 1.13.
C) 2.67.
D) None of the choices are correct.

Correct Answer

verifed

verified

What is the price elasticity of demand coefficient?


A) A number that measures the responsiveness of quantity demanded to a change in price.
B) A number that measures the responsiveness of quantity demanded to a change in demand.
C) A number that measures the responsiveness of price to a change in the quantity demanded.
D) A number that measures the responsiveness of price to a change in demand.

Correct Answer

verifed

verified

The list below refers to the price elasticity of demand. 1) perfectly inelastic 2) perfectly elastic 3) unitary elasticity 4) elastic 5) inelastic -Refer to the information above to answer this question.What is a demand when the elasticity coefficient is greater than 1?


A) 1.
B) 2.
C) 3.
D) 4.
E) 5.

Correct Answer

verifed

verified

Define 'elasticity of supply'.How is it calculated?

Correct Answer

verifed

verified

The responsiveness o...

View Answer

What is the effect on total revenue if demand is elastic and price rises?


A) Total revenue will fall.
B) Total revenue will rise.
C) Quantity demanded will rise.
D) Supply will rise.

Correct Answer

verifed

verified

Showing 81 - 100 of 195

Related Exams

Exam 1

The Economic Problem

157 Questions

Exam 2

Demand and Supply: An Introduction

185 Questions

Exam 3

Demand and Supply: An Elaboration

139 Questions

Exam 5

Consumer Choice

144 Questions

Exam 6

A Firms Production Decisions and Costs in the Short Run

179 Questions

Exam 7

Costs in the Long Run

132 Questions

Exam 8

Perfect Competition

172 Questions

Exam 9

An Evaluation of Competitive Markets

149 Questions

Exam 10

Monopoly

179 Questions

Exam 11

Imperfect Competition

145 Questions

Exam 12

The Factors of Production

151 Questions

Exam 13

International Trade

166 Questions

Show Answer