Intro Mircro: Chapter 4 Quiz
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calculating income elasticity of demand when the price of food is 20$ day... [percent change in Q] / [percent change in I]
D
A decrease in tuition fees will decrease your college's total revenue if the price elasticity of demand for college education is ______. A. greater than 1 B. negative C. equal to 1 D. greater than zero and less than 1
C
An advance in technology lowers the price of a laptop. If the demand for laptops is price inelastic, the quantity of laptops sold will ______ and total revenue will ______. A. increase, rise B. decrease, fall C. increase, fall D. decrease, rise
B
Cassandra's demand for orange juice is price elastic. A severe frost destroys much of the Florida orange crop. Cassandra ______. A. increases the amount that she spends on orange juice B. decreases the amount that she spends on orange juice C. increases or decreases the amount that she spends on orange juice, depending on whether or not the grapefruit crop has also been affected D. continues to spend the same amount on orange juice
B
Choose the correct statement. A. A rise in price increases total revenue. B. Total revenue from the sale of a good equals the price of the good multiplied by the quantity sold. C. The change in total revenue that arises from a price change is independent of the price elasticity of demand. D. A rise in price decreases total revenue.
D
Choose the statement that is incorrect. A.Elasticity is a units-free measure. B. Elasticity is reported using its magnitude. C. Elasticity is the ratio of two percentage changes. D. Elasticity is reported as a negative number because a positive change in price brings a positive change in the quantity demanded.
.10 --> inelastic
If the quantity demanded of textbooks decreases by 1 percent when the price of a textbook rises by 10 percent, what is the price elasticity of demand for textbooks?
D
Price elasticity of demand _______. A. is equal to the percentage change in price divided by the percentage change in quantity demanded B. is a measure of the responsiveness of the quantity demanded of a good to a change in income, when all other influences on buyers' plans remain the same C. is measured in dollars D. and the slope of the demand curve are two different concepts
B
Rice and noodles are substitutes. The cross elasticity of demand for rice with respect to the price of noodles is _______. A. zero B. positive C. negative D. -1
D
Ski trips and ski jackets are complements. The cross elasticity of demand for ski trips with respect to the price of a ski jacket is _______. A. positive, negative, or zero B. positive C. zero D. negative
B
Supply is perfectly inelastic and the supply curve is ______. A. upward sloping when the percentage change in price is less than the percentage change in quantity B. vertical when the quantity supplied is fixed regardless of the price C. upward sloping when the percentage change in price equals the percentage change in quantity D. horizontal when the quantity supplied is fixed regardless of the price
D
The closer the substitutes for a good or service, the more ______ is demand. The greater the proportion of income spent on a good, the more ______ is demand. A. inelastic; inelastic B. inelastic; elastic C. elastic; inelastic D. elastic; elastic
D
The demand for air travel between two cities doubles. The elasticity of the supply of air travel between these cities will _______. A. adjusts to become equal to the price elasticity of demand over time B. not change over time C. become less elastic, the longer the time since demand doubled D. become more elastic, the longer the time since demand doubled
D
The demand for plums is unit elastic if __________. a. the price of plums does not change after a drought b. any increase in the price of plums results in a 1 percent decrease in the quantity of of plums demanded c. my demand for plums increases when the price of apples falls d. a 5 percent rise in the price of plums results in a 5 percent decrease in the quantity of plums demanded
A
The longer the time that has elapsed since a price change, the more _______ is demand. A. elastic B. inelastic
.53%
Virginia's fried chicken wants to increase the quantity of fried chicken that it sells by 1 percent. The price elasticity of demand for fried chicken sold by Virginia's fried chicken is 1.9. What is the percentage price cut that will achieve the firm's objective?
B
When Mohesha receives an increase in her pay check from $1,800 a month to $2,200 a month, she increases the quantity of hot chocolate that she buys from 19 cups a month to 21 cups a month. Mohesha's demand for hot chocolate is income ______. For Mohesha, hot chocolate is ______ good. A. inelastic; an inferior B. inelastic; a normal C. elastic; a normal D. elastic; an inferior
1
When the P of pizza falls by 100 percent, the quantity demanded of pizza increases by 100 percent. What is the price elasticity of the demand for pizza?
A
When the percentage change in the quantity demanded equals the percentage change in price, the demand curve is _______. A. curved toward the origin B. curved away from the origin C. a horizontal line D. a vertical line
A
Which of the following statements describes a perfectly inelastic demand? a. Walgreens does not find any change in the number of people buying chlorthalidone after a 7 percent rise in its price. b. I prefer taking the subway to work rather than driving because of high fuel prices. c. A large number of youngsters buy roses from Colombian rose-growers before Valentine's Day. d. The government is promoting generic drugs that are much cheaper.
A
Which of the following statements describes an elastic demand? A. Mary's quantity demanded of milk decreased by 8 percent when the price of milk rose by 5 percent. B. Tom's demand for apples does not change when the price of bananas rises. C. I can't afford as many books because my income has fallen. D. A fall in Ralph's income by 5 percent changes his demand for chocolates by 1 percent.
A
Which of the following statements illustrates income elasticity of demand? A. A salary cut and no other changes has resulted in Mary buying less fast food. B. A rise in Annie's income by 5 percent decreases supply of canned fruits by 6 percent. C. Poor economic conditions are resulting in higher unemployment and lower aggregate demand. D. A 2 percent fall in the price of peanuts increases Ralph's demand for almonds by 5 percent.
D
Which of the following statements is an example of elasticity of supply? A. A 20 percent discount at all Old Navy stores is drawing large crowds. B. The quality of fruits sold by Safeway is getting better. C. Farmers increase their supply of potatoes when the price of onions rises. D. A 10 percent fall in the price of turkey with no other change decreases quantity supplied by 12 percent.
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question 22 on quiz
