economics

When the price of hot dogs is 1.50 each, 500 hot dogs are sold everyday. After the price falls to 1.35 each, 510 hot dogs are sold. At the original price, find elasticity.

.2

If the absolute value of the price elasticity of demand for tickets to a game is 2, then if the price increases by 1% the quanity demanded decreases by ____

2%

Supppose that at a price of 25c per orang, 500 people buy 4 oranges. At the price of 20c per orange, 750 people buy 5 oranges. Therefore, the market demand for oranges is _____ at 25 c and _____ at 20c.

2000, 3750

If the cross price elasticity is -2, the relationship of these two goods is ______.

Compliments

Jenny sells lemonade in front of her house in the summer. Other kids do it too. Jenny charged 25c for an 8 oz cup, Sam charged 50 cents, and Alex charged 15 cents. WHat is most likely to happeen?

Eventually, prices will equalize

It takes many years to train to become an orthopedic surgeon. This suggests that, in the short run, a sudden increase in the demand for orthopedic surgeons will:

Have little effect on the number of trained surgeons

Suppose that there is only one small clothing store in Midlo, and until recently the townspeople bought from them. As more people got access to the internet, the price elasticity of demand for shirts at the midlo store will : ______

Increase because the internet offers more substitutes

Suppose we have two goods, if they are compliments, the sign cross price elasticity is ________

Negative

If the income is a _____ good, the income elasticity is positive

Normal

The short run is best defined as :

a period of time sufficiently short that at least one factor of production is fixed.

When price of hot dog sausage increases, the quantity demanded of buns goes down, therefore the sausage and the bun are _______ (compliments or substitutes)

compliments

A goods real price is the :

dollar price of the good relative to the average dollar price of all other goods and services

To produce 150 units of output, a firm must use 3 employee hours. To produce 300 units. To produce 300 units, the firm must use 8 hours. Apparently, the firm is ____

experiencing diminishing returns

If demand is ______ with respect to price, a price increase will ______ total revenue.

inelastic, increase

When people get more income, the demand for used cars declines, therefore used cars are a _________ good.

inferior

If a demand curve is horizontal at p=5, then the price elasticity of demand is

infinite

Perfectly horizontal = _____, vertical = ______

infinite, 0

Suppose that you learn that in 1900, households spent 40% of their budget on food, and today, they spend about 10% on food. This suggests that the price elasticity of demand for food is _____

is probably lower now than it was in 1900

The demand for a good is inelastic with respect to price if the price elasticity of demand is :

less than one

If the demand for salad dressing increases when the price of lettuce decreases, the price elasticity of demand between salad dressing and lettuce will be _____ because the two goods are ____.

negative, compliments

In surveying their alumni, State U's economics department discovered that ramen noodle consumption declined as soon as students graduated and found jobs. One conclusion the survey team might draw from this result is that

ramen noodles are an inferior good

The law of demand indicates that as the cost of an activity:

rises, less of the activity will occur

Suppose that if the price of plane tickets increased, more people would choose to travel by train. If this happened, you would know that:

the cross price elasticity between plane tickets and train tickets is positive

Individual supply curves generally slope ___ because ___

upward, of increasing oppurtunity costs