Microeconomics final exam
If the price of Good X rises from $4 to $5, and the quantity demanded of it falls from 200 units to 180 units, the absolute value of the price elasticity of demand is:
0.47
total revenue is
Price x Quantity
as the price of oil rises
consumers increasingly use oil for those purposes without good substitutes meaning the demand curve is negatively sloped
a 4 percent increase in the price of beer will cause a 1 percent decline in the quantity of beer demanded. the demand for beer
b. inelastic
an early frost in the vineyards of Napa Valley would cause
decrease in the supply of wine increasing price
if the demand curve is inelastic a price __________ causes a_____________ in revenues
decreases,decreases
immediately after a hurricane it is likely that the quantity demanded for tree cutting removal services will
exceed,rise
increase the demand of beef =
higher consumer income
since the demand curve for computer chips is elastic, a decrease in the price of computer chips caused by an increase in productivity will
increase revenue for the computer chip industry and make computers a larger share of the American economy
Since the demand for illegal drugs is quite inelastic, an increase in the price of illegal drugs:
increase sellers revenues
When Asian countries went into a recession in 1997, the demand for oil _______ and the price of oil ________.
increased, increased
the elasticity of demand measures how sensitive the
quanity demanded is to change in price
`the demand curve for physician office visits is quite inelastic therefore a
small increase in price causes quantity demanded to increase by a lot
supposed it is widely believed that the price of flat screen high definition televisions will be lower next year then
the demand for flat screens tv's would decrease now
an increase in supply and a decrease in demand occur in a market what happens to the equilibrium price and quantity
the equlibrium price decrease the change in the equlibrium quanity is ambiguous
the law of demand states
the lower the price, the greater the quantity demanded
a firm produces volleyballs and soccer balls if the market price of volleyballs increases
the opportunity cost of producing soccer balls rises, so the supply curve of soccer balls decreases
the demand curve for froot loops breakfast cereal is very elastic because
there are many good substitutes for Froot loops
a change in the price reflected by a movement along the same demand curve while a change in demand refers to a shift of the entire demand curve true or false
true
the formation of the organization of the petroleum exporting countries(OPEC)made it easier for these oil producing countries to act together and successfully limit the supply of oil thus raising prices true or false
true