econ final

if the price elasticity of supple of 1.5 and a price increase led to a 1.8% increase in quantity supplies, then the price increasse amounted to

1.20%

....using the midpoint method, the elasticity of mackenzies labor supply between the wages of $50 and $65 per hour is _______, which means that mackenzies supply of laber over this wage range is ______

1.35, elastic

studies indicate that in the U.S the price elasticity of demade for eggs is about 0.1, A gov policy aimed at making eggs affordable to all consumers changed the price of a dozen eggs from 3$ to 2$. According to the midpoint method, the government policy increased egg demand by

4%

if demand is_____, the fall in revenue from lower quantity demanded is greater than the increase in revenue from higher price, so total revenue______

elastic, falls

if demand is price inelastic

all the above

which of the following would shift the demand curve for mp3 plyers?

all the above

which of the following might cause the demand curve for an inferior good to shift to the left

an increase in the price of a complement

the supply of beachfront property is inelastic. the supply of new cars is elastic. suppose populatiion growth causes demad for both goods to double. for which product will price change the most?

beachfront property

a price ceiling is a legal maximun on the price of a good, if the price ceiling is ___ the equilibrium price, it is ____ and casuses a ___

below, binding,, shortage

which of the following statements about the incidence of tax is correct

both a and b

if the supply of pencils, a subsitute for pens, increases, what will happen to the equilibrium price of pencils and the equilibrium price oof pens?

both the the equilibrium price of pencils and the equilibrium price of pens will fall

computers and software are complements. hence we could expect the

cross-price elasticty< 0

equilibrium price must decrease when demand

decreases and supply does not change, when demand does not change and supply increasses, and when demand decreases and supply increasses simultanesously

which of the following statements about elasticity is not correct

demand is more elastic in the short run, for broadly defined goods, and for goods with few close substitutes

equilibrium quantity must increase when demand

increase and supply does not change, when demand does not change and supply increasses, and when both demand and supple increasse

a price increase has 2 effects on total revenue: an increase in reenue from higher price, and a fall in revenue from loawer quantity due to the law of demand. which of these two effects if bigger?

it depends on the prices elasticity of demand

how does toal revenue change as one moves downward and to the right along a linear demand curve

it first increses, then decreases

music compact discs are normal goods. what will happen to the equilibrium price and quantity oof music compact discs if muscicans accept lower royalties, compact disc players become chaper, more firms start producing music compact discs, and music lovers experience an increase in income

quantity will rise and the effect on the price is ambigious

which of the folowing statements about rent control is correct

rent control is an example of a price ceiling, and the minimum wage is an example of a price floor

nike air max are not popular right now, so very few are being produced. If nike air max become popular, how will this affect the market for nike air max

the demand curve for nike air max will shift right, which will create a shortage at the current price. Price will incrrease, which will decrease quantity demanded and increase quantity supplied. the new market equilibruim will be at a higher price and higher quantity

if the supply of tennis balls, a complements to tennis racquets, decrease, what will happen to the equilibrium price of tennis balls and to the equilibrium price of tennis raquets?

the equilibrium price of tennis balls will rise and the equilibrium price of tennis raquets will fall

if alan and kenya are the only sellers in the market for latte, which of the following statements is not correct?

the market supply for latte is vertical summation of Alana's and Kenya's supply curves

consider sirfares on flights between stillwater and dallas, when the airfare is $250, the quantitiy demanded of tickets is about 2,000 per week. when the airfare is $280, the quantity demanded of tickets is 1700 a week. using mid point method

the price elastiity of demand is about 1.43 and an increase in the airfare will cause airlines total revenue to decrease