Econ final exam

The cost of sensors used in making radio frequency identification ( RFID ) chips falls , while a successful ad campaign makes using " tap " technology in credit card usage more fashionable . As a result , the equilibrium price of RFID chips _____ and the equilibrium quantity _______

may increase , decrease , or stay the same ; increases

Suppose the price of gasoline rises . As time passes , people adjust to the higher pnce , and the demand for

more elastic

Researchers have found a new strain of canola ( a grain used to produce canola oil ) that is resistant to pesticides and drought while yielding more canola oil . Holding all else constant , this research will :

shift the supply curve for canola oil rightward . ]

Suppose the price of real estate increases by 37.11 % in New York City next year . If the quantity of new homes supplied does not change , the price elasticity of ______ will be perfectly ________ in New York City next year .

supply ; inelastic

Assuming that farmers can easily stock beef or pork , if the price of beef decreases , you can expect the :

supply of pork to increase .

You notice that the price of notebooks falls and that the quantity of notebooks sold increases . You suspect that the _______ notebooks shifts to the ______

supply of; right

Lyft cuts the price of a ride in New York City by 20 % . Thereafter , the quantity of rides demanded rises by 25 % . What is the absolute value of the price elasticity of demand for Lyft rides ?

- 0.8

Two products have a cross - price elasticity of demand of 1.5 . Based on this value of cross - price elasticity , which of the following products are they most likely to be ?

2 competing brands of soft drinks

Figure : Shift in Demand 1 ) Use the figure to answer the question .

A fall in the price of a complementary product .

34 Harry Watson is an engineering student taking an economics elective in his senior year . He has the option after college to work economics course to help as a petroleum with this decision . By knowing that he cannot be both a petroleum engeineer amdna rollercoaster designer , he is acknowledging the dependencies that esist

between his own choices .

28. If the price of M & M peanut candies increases , and the demand for cherry - flavored soft drinks decreases , these two goods are _____ goods .

complementary

2. If ratatouille and Hungarian goulash are substitutes , a decrease in the price of Hungarian goulash will cause the demand for :

increase ratatouille to decrease

The market for lobster is in equilibrium . Which factor is most likely to INCREASE the equilibrium price of lobster ?

with lobster being a normal good . an increase in the price of salmon , a substitute in consumption