Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Microeconomics Expert

1) Price elasticity of demand is a measure of

A. the responsiveness of the quantity demanded of a good to a changes in the price of the good.
B. the quantity demanded of a good at a given price.
C. the demand for a product holding prices constant.
D. the horizontal shift in the demand curve when the price of a good changes.

2) If the price of oil goes up by 50 percent and the quantity demanded goes down by 25 percent, the absolute value of the price elasticity of demand is

A. 0.25.
B. 0.50.
C. 0.75.
D. 1.00.

3) The greater is the absolute price elasticity of demand, the

A. larger is the responsiveness of quantity demanded to the price change.
B. smaller is the responsiveness to a price change.
C. larger is the income of the buyer.
D. higher is the change in demand to an income change.

4) Refer to the table below. For which prices is demand elastic?

A. in a range of prices below $6.50
B. in a range of prices above $6.50
C. in a range of prices between $5 and $10
D. in a range of prices above $9.00

936_Price elasticity.jpg

5) When total revenue and price are inversely related, demand is

A. unit-elastic.
B. inelastic.
C. elastic.
D. not related.

6) Moving downward on a downward-sloping linear demand curve, the absolute value of the price elasticity of demand

A. is constant.
B. increases continuously.
C. decreases continuously.
D. may either increase or decrease.

7) Use the figure below. When price increases from $2 to $10, total revenue

1516_Inelastic demand.jpg

A. increases from areas A + B to areas B + C and demand is inelastic.                      
B. increases from areas B + C to areas A + B and demand is inelastic.
C. increases from areas B + C to areas A + D and demand is elastic.
D. increases from areas C + D to areas B + A and demand is elastic.

8) An elastic response in the quantity of a good demanded would be caused by

A. the availability of many substitutes.
B. a lack of substitutes.
C. a lack of sensitivity to the good's price.
D. the good representing a small portion of a person's budget.

9) When numerous but imperfect substitutes exist for a good, the demand for the good would tend to be

A. inelastic.
B. elastic.
C. unitary.
D. perfectly elastic.

10) When the consumer spends less than 3 percent of his income on a good, demand would be:

A. elastic.
B. unit-elastic.
C. inelastic.
D. elastic, unit-elastic, or inelastic depending upon supply.

11) Assume that number of units of good X consumed falls 6 percent when the price of good Y falls 4 percent. The cross price elasticity of demand between goods X and Y is

A. 0.66.
B. 1.75.
C. 2.0.
D. 1.5.

12) Refer to table below. Based on the information in the table, we could say that

557_Goods_1.jpg

A. all three goods are substitutes for each other.
B. all three goods are complements.
C. X and Y are substitutes, Y and Z are complements, and X and Z are substitutes.
D. X and Y are complements, Y and Z are substitutes, and X and Z are complements. 

13) Use the figure below. Which graph depicts complementary goods?

2335_Goods.jpg

A. A
B. B
C. C
D. D 

14) Income elasticity relates to

A. a movement down a demand curve.
B. a movement up a demand curve.
C. a horizontal shift in a demand curve.
D. the percentage change in quantity demanded divided by the percentage change in the price.

15) If demand for Rolls Royce automobiles rises in an area where incomes have increased, this tells us that Rolls Royce is

A. a normal good.
B. an inferior good.
C. a complementary good.
D. a substitute good.

16) The income elasticity of demand

A. is positive only.
B. is negative only.
C. must lie between -1 and +1.
D. can be positive, negative, or zero.

17) If price elasticity of supply of television sets is constant and equal to 3, a 10 percent increase in price would result in a change in quantity supplied equal to

A. 3 1/3 percent.
B. 30 percent.
C. 1/3 percent.
D. -30 percent.

18) If supply of a good is perfectly inelastic, the price elasticity of supply would equal

A. positive infinity.
B. one.
C. zero.
D. none of the above.

19) Supply curve for housing in the very short run is likely to be

A. very elastic.
B. very inelastic.
C. unit-elastic elastic.
D. perfectly elastic.

20) If price elasticity of supply is less than 1,

A. supply is elastic.
B. demand is elastic.
C. demand is inelastic.
D. supply is inelastic.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M92077

Have any Question? 


Related Questions in Microeconomics

Watch the video on the link belowthen answer the following

Watch the video on the link below. Then answer the following questions: 1. Would the incentives discussed in the video be able to work in a college setting? Why or why not? 2. Have you ever changed your behavior because ...

Assignmentthere is the widespread notion that economists

Assignment There is the widespread notion that economists rarely agree with each other. This seems perplexing when we note also that economics is often called the "Queen of the Social Sciences" (meaning that it is the mo ...

Assignment money and pricethe organizations strategic plan

Assignment: Money and Price The organization's strategic plan you wrote about calls for an aggressive growth plan, requiring investment in facilities and equipment, growth in productivity, and labor over the next five ye ...

Discussion questionplease read thoroughly and provide

Discussion Question Please read thoroughly and provide references • Manufactures of smartphones design products to be interactive with consumers. To remain competitive, designers are focused on getting a new product to m ...

Question 1which of the following levels of supply chain

Question 1 Which of the following levels of supply chain information systems is most likely to provide the firm with a competitive advantage? A.Strategic planning B.Decision analysis C.Management control D.Transaction sy ...

Economics assignmentcontentselect a news article with

Economics Assignment Content: Select a news article with economic implications within the previous six months and explain, analyze and expand the issue using the economic concepts and theory learned in this class. Includ ...

Assignmentfor this assignment write a paper describing how

Assignment For this assignment, write a paper describing how an analysis of intrusion signatures could be conducted for your project organization. Include the following in your paper: • A description of signature analysi ...

Questionsexercisesseminar 11nbsp discuss what you

Questions/Exercises Seminar 1 1.  Discuss what you understand by the following: a) the law of demand b) the conditions of demand c) a demand curve d) a normal good e) an inferior good f) a Giffen good G) the law of suppl ...

Assignment1laura just opened a coffee shop in nyc named

Assignment 1. Laura just opened a coffee shop in NYC named Squirrel Coffee. Hoping to cater to the hipsters, she sells a special kind of cold brew infused with nitrogen, which she dubs ‘nitro coffee'. Assume for the purp ...

The economy is full employment now the government wants to

The economy is full employment. Now the government wants to change the composition of demand toward investment and away from consumption without, however, allowing aggregate demand to beyond full employment. What is requ ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen