Filters
Question type
Study Flashcards

Water is considered a necessity. So, is the demand for water elastic or inelastic?

Correct Answer

verifed

verified

The demand for neces...

View Answer

-The figure illustrates the demand for hamburgers. When the price is $1.00 a hamburger, the elasticity of demand is ________ and a 1 percent increase in the price will ________ the quantity of hamburgers demanded by ________ percent. A) 1.00; decrease; 0.40 B) 0.40; decrease; 0.40 C) 2.50; increase; 2.50 D) 5.00; decrease; 5.00 -The figure illustrates the demand for hamburgers. When the price is $1.00 a hamburger, the elasticity of demand is ________ and a 1 percent increase in the price will ________ the quantity of hamburgers demanded by ________ percent.


A) 1.00; decrease; 0.40
B) 0.40; decrease; 0.40
C) 2.50; increase; 2.50
D) 5.00; decrease; 5.00

Correct Answer

verifed

verified

-The figure illustrates the demand for eggs. At what price will egg sellers maximize their total revenue? A) above $0.75 a dozen B) $0.75 a dozen C) less than $0.75 a dozen D) $1.50 a dozen -The figure illustrates the demand for eggs. At what price will egg sellers maximize their total revenue?


A) above $0.75 a dozen
B) $0.75 a dozen
C) less than $0.75 a dozen
D) $1.50 a dozen

Correct Answer

verifed

verified

If the elasticity of supply of a good is zero, then its


A) supply curve is vertical.
B) supply curve is horizontal.
C) demand curve must be vertical.
D) supply curve is positively sloped.

Correct Answer

verifed

verified

If the demand for a good is unit elastic


A) a 5 percent increase in price results in a 5 percent increase in total revenue.
B) a 5 percent increase in price results in a 5 percent decrease in total revenue.
C) a 5 percent increase in price does not change total revenue.
D) the demand curve is a straight line with slope of -1.

Correct Answer

verifed

verified

The price of gasoline rises by 33 percent to $3.50 a gallon and stays at that price for the next two years. The quantity of gasoline demanded two years from now will be


A) the same as one month after the price hike.
B) greater than one month after the price hike.
C) less than one month after the price hike.
D) the same as it would be if the price hike had never occurred.

Correct Answer

verifed

verified

The price of a bus ride decreases, and the total revenue of the bus company decreases. The demand for bus rides is


A) perfectly elastic.
B) inelastic.
C) unit elastic.
D) elastic but not necessarily perfectly elastic.

Correct Answer

verifed

verified

As time passes after a change in the price, the supply of a good or service


A) becomes more elastic.
B) becomes less elastic.
C) initially becomes more elastic and then becomes less elastic.
D) initially becomes less elastic and then becomes more elastic.

Correct Answer

verifed

verified

Last year, Jack's income was $15,000 and he bought 50 bags of potato chips. This year his income is $18,000 and he buys 55 bags of potato chips. Therefore, Jack's


A) income elasticity of demand for potato chips is 0.52.
B) price elasticity of demand for potato chips is 0.52.
C) income elasticity of demand for potato chips is 1.66.
D) price elasticity of demand for potato chips is 1.66.

Correct Answer

verifed

verified

Last year the price of corn was $3 per bushel and the quantity of corn demanded was 8 million bushels. This year the price of corn is $4 per bushel and the quantity of corn demanded is 7 million bushels. Assuming that the demand curve has not shifted, what is the price elasticity of demand for corn? (Use the midpoint formula.)


A) 1
B) 0.47
C) 2.14
D) 0.29

Correct Answer

verifed

verified

The demand for Honda Accords is probably


A) inelastic but more elastic than the demand for automobiles.
B) elastic and more elastic than the demand for automobiles.
C) inelastic and less elastic than the demand for automobiles.
D) elastic but less elastic than the demand for automobiles.

Correct Answer

verifed

verified

As income rises, the share of income spent on food in the United States


A) falls.
B) remains constant at 15 percent.
C) remains constant at 33 percent.
D) rises.

Correct Answer

verifed

verified

Which of the following is likely to have the smallest price elasticity of demand?


A) an automobile
B) a new automobile
C) a new Ford automobile
D) a new Ford Mustang

Correct Answer

verifed

verified

The price elasticity of demand is always positive, as is the price elasticity of supply. Is the cross elasticity of demand always positive? Explain your answer.

Correct Answer

verifed

verified

No, the cross elasticity of demand is no...

View Answer

The income elasticity of demand is defined as the percentage change in


A) the quantity demanded resulting from a given percentage change in price.
B) income divided by the percentage change in quantity demanded.
C) the movement along the demand curve resulting from a change in income.
D) the quantity demanded divided by the percentage change in income.

Correct Answer

verifed

verified

The price elasticity of demand for a specific model of a luxury car is likely to be


A) elastic.
B) inelastic.
C) 0.
D) infinite.

Correct Answer

verifed

verified

Suppose the quantity supplied of computers increases from 2 million to 4 million units as the price of a computer increases from $600 to $700. What does the price elasticity of supply equal?

Correct Answer

verifed

verified

The price elasticity of supply = (percen...

View Answer

Explain why the availability of resources affects the elasticity of supply.

Correct Answer

verifed

verified

A good that can be produced using common...

View Answer

A decrease in the price of eggs from $1.50 to $1.30 per dozen resulted in an increase in egg purchases in two cities. In Philadelphia, daily egg purchases increased from 6000 to 8000 dozens; in nearby Dover, Delaware, daily egg purchases increased from 300 to 400 dozens. The price elasticity of demand is therefore


A) lower in the smaller city as would be expected.
B) greater in the smaller city as would be expected.
C) certainly affected by population differences in different markets.
D) the same in Philadelphia as in Dover.

Correct Answer

verifed

verified

A good with a vertical demand curve has a price elasticity of demand that


A) is equal to 1.
B) is equal to infinite.
C) is equal to zero.
D) varies between 0 and 1.

Correct Answer

verifed

verified

Showing 141 - 160 of 530

Related Exams

Exam 1

What Is Economics

483 Questions

Exam 2

The Economic Problem

440 Questions

Exam 3

Demand and Supply

515 Questions

Exam 5

Efficiency and Equity

450 Questions

Exam 6

Government Actions in Markets

412 Questions

Exam 7

Global Markets in Action

205 Questions

Exam 8

Utility and Demand

366 Questions

Exam 10

Organizing Production

385 Questions

Exam 11

Output and Costs

493 Questions

Exam 12

Perfect Competition

487 Questions

Exam 13

Monopoly

599 Questions

Exam 14

Monopolistic Competition

318 Questions

Exam 15

Oligopoly

276 Questions

Exam 16

Public Choices, Public Goods, and Healthcare

205 Questions

Exam 17

Externalities

437 Questions

Exam 18

Markets for Factors of Production

382 Questions

Exam 19

Economic Inequality

351 Questions

Exam 20

Uncertainty and Information

233 Questions

Show Answer