AP Micro test

The diagram concerns supply adjustments to an increase in demand (D1 to D2) in the immediate market period, the short run, and the long run. Which supply curve would most represent the short run

$2

The diagram concerns supply adjustments to an increase in demand (D1 to D2) in the immediate market period, the short run, and the long run. In the immediate market period, the increase in demand will

increase equilibrium price but not equilibrium quantity

If a 20 percent increase in the price of a good leads to a 5 percent decrease in the quantity demanded of the good, demand is

relatively inelastic

Following a decrease in the supply of oranges, the price of orange juice increased by 20 percent, which resulted in a 10 percent increase in the quantity of apple juice consumed. This implies that the cross elasticity of demand between orange juice and apple juice is

0.5

The supply of product y is elastic if the price of Y rises by

5 percent and quantity supplied rises by 7 percent

The cross-price elasticity of demand between goods J and K is -3. A 20 percent decrease in the price of good K will result in a

60 percent increase in the quantity demanded of good J

Assume the income elasticity of demand for good Z equals −5.0. Which of the following is true?

An increase in income will lead to a decrease in demand

Demand for a product tends to be more price inelastic if

The product is a necessity

If a new technology significantly increases the production of pizza shops but pizza suppliers' revenue decreases, which of the following is true over the observed range of prices

The supply of pizza must be inelastic

The price elasticity of demand coefficient measures

buyer responsiveness to price changes

A perfectly inelastic demand schedule

can be represented by a line parallel to the vertical axis.

Assume that the price elasticity of supply for good Y is .5. If the price of good Y decreases by 30 percent, the quantity supplied of good Y will:

decrease by 15 percent

If demand for a product is elastic, the value of the price elasticity coefficient is:

greater than one

The price of product X is reduced from $100 to $90 and, as a result, the quantity demanded increases from 50 to 60 units. Therefore demand for X in this price range:

is elastic

Promoters of a rock group know that if they charged $8 a ticket, 400 people would buy tickets for a concert, and if they charged $4 a ticket, 800 people would buy tickets. Over this price range, the demand for the concert tickets for the rock group is

unit elastic