Question 1

A government-imposed price floor above the market price of milk would increase consumers' expenditures on milk only if _____.​

Accepted Answer

A)  demand is elastic
B)  supply is inelastic
C)  demand falls
D)  demand is inelastic
E)  supply is unit elasticF) None of the above
G) B) and C)

Question 2

As price decreases along a linear demand curve, the price elasticity of demand decreases.​

Accepted Answer

A) True 
 B)False

Question 3

Given the availability of California oranges, the demand for Florida oranges will:​

Accepted Answer

A)  be less elastic than if there were no California oranges.
B)  be more elastic than if there were no California oranges.
C)  have the same elasticity as it would if there were no California oranges.
D)  be perfectly elastic.
E)  be perfectly inelastic.F) B) and E)
G) A) and C)

Question 4

Another word for elasticity is _____.​

Accepted Answer

A)  responsiveness
B)  happiness
C)  bonus
D)  profit
E)  surplusF) B) and E)
G) A) and D)

Question 5

If the cross-price elasticity of demand between Good x and Good y is 0.4, then:​

Accepted Answer

A)  the demand for good x is highly responsive to changes in the price of good y.
B)  a 10 percent increase in the price of good y leads to a 0.4 percent increase in the quantity demanded of good x.
C)  a 10 percent decrease in the price of good y leads to a 4 percent decrease in the demand for good y.
D)  good x and good y are complements.
E)  good x is a normal good and good y is an inferior good.F) B) and E)
G) B) and D)

Question 6

Figure 5.2 shows a demand curve. D, the demand curve in the figure below is an example of a(n) :​ ​
Figure 5.2.

Accepted Answer

A)  upward-sloping demand curve.
B)  linear demand curve.
C)  perfectly elastic demand curve.
D)  unit-elastic demand curve.
E)  perfectly inelastic demand curve.F) A) and E)
G) D) and E)

Question 7

Figure 5.5 shows the total revenue curve for a firm. Which of the following statements is true in the range of the total revenue curve labeled A?​ ​
Figure 5.5

Accepted Answer

A)  Demand is elastic.
B)  Demand is inelastic.
C)  Demand is unit elastic.
D)  Demand is perfectly inelastic.
E)  Demand is perfectly elastic.F) B) and E)
G) A) and E)

Question 8

Income elasticity of demand is greater than zero for all of the following except:​

Accepted Answer

A)  restaurant meals.
B)  beer.
C)  owner-occupied housing.
D)  food items.
E)  rental housing.F) All of the above
G) C) and D)

Question 9

If an increase in the price of a product from $100 to $200 per unit leads to a decrease in the quantity demanded from 10 to 8 units, then demand is:​

Accepted Answer

A)  elastic.
B)  inelastic.
C)  unit elastic.
D)  zero.
E)  perfectly elastic.F) A) and C)
G) B) and C)

Exam 5: Elasticity of Demand and Supply

If an increase in the price of a product from $100 to $200 per unit leads to a decrease in the quantity demanded from 10 to 8 units, then demand is:

Correct Answer
verified

A government-imposed price floor above the market price of milk would increase consumers' expenditures on milk only if _____.

Correct Answer
verified

Figure 5.5 shows the total revenue curve for a firm. Which of the following statements is true in the range of the total revenue curve labeled A? Figure 5.5

Correct Answer
verified

As price decreases along a linear demand curve, the price elasticity of demand decreases.

Correct Answer
verified

Given the availability of California oranges, the demand for Florida oranges will:

Correct Answer
verified

Another word for elasticity is _____.

Correct Answer
verified

Income elasticity of demand is greater than zero for all of the following except:

Correct Answer
verified

Figure 5.2 shows a demand curve. D, the demand curve in the figure below is an example of a(n) : Figure 5.2.

Correct Answer
verified

If the cross-price elasticity of demand between Good x and Good y is 0.4, then:

Correct Answer
verified

Exam 5: Elasticity of Demand and Supply

If an increase in the price of a product from $100 to $200 per unit leads to a decrease in the quantity demanded from 10 to 8 units, then demand is:​

Correct AnswerverifiedShow Answer

A government-imposed price floor above the market price of milk would increase consumers' expenditures on milk only if _____.​

Correct AnswerverifiedShow Answer

Figure 5.5 shows the total revenue curve for a firm. Which of the following statements is true in the range of the total revenue curve labeled A?​ ​ Figure 5.5

Correct AnswerverifiedShow Answer

As price decreases along a linear demand curve, the price elasticity of demand decreases.​

Correct AnswerverifiedShow Answer

Given the availability of California oranges, the demand for Florida oranges will:​

Correct AnswerverifiedShow Answer

Another word for elasticity is _____.​

Correct AnswerverifiedShow Answer

Income elasticity of demand is greater than zero for all of the following except:​

Correct AnswerverifiedShow Answer

Figure 5.2 shows a demand curve. D, the demand curve in the figure below is an example of a(n) :​ ​ Figure 5.2.

Correct AnswerverifiedShow Answer

If the cross-price elasticity of demand between Good x and Good y is 0.4, then:​

Correct AnswerverifiedShow Answer

If an increase in the price of a product from $100 to $200 per unit leads to a decrease in the quantity demanded from 10 to 8 units, then demand is:

Correct Answer
verified

A government-imposed price floor above the market price of milk would increase consumers' expenditures on milk only if _____.

Correct Answer
verified

Figure 5.5 shows the total revenue curve for a firm. Which of the following statements is true in the range of the total revenue curve labeled A? Figure 5.5

Correct Answer
verified

As price decreases along a linear demand curve, the price elasticity of demand decreases.

Correct Answer
verified

Given the availability of California oranges, the demand for Florida oranges will:

Correct Answer
verified

Another word for elasticity is _____.

Correct Answer
verified

Income elasticity of demand is greater than zero for all of the following except:

Correct Answer
verified

Figure 5.2 shows a demand curve. D, the demand curve in the figure below is an example of a(n) : Figure 5.2.

Correct Answer
verified

If the cross-price elasticity of demand between Good x and Good y is 0.4, then:

Correct Answer
verified