Econ

Given a demand formula for frisbees of P = $8.30 − 1.23Q, what is the proper interpretation of the value of −1.23?

-1.23 represents the decrease in price necessary to cause the quantity demanded of frisbees to increase by one unit.

Consider the equation of linear function y = −4 + 7x. If it were graphed, the intercept would be

-4

Given the equation for a linear function, a + bx = y, which term represents the intercept?

a

The implication for farmers of income inelasticty of most agricultural commodities is

as consumers' incomes increase, farm income will not increase by the same percentage.

On a demand curve, an increase in the price of a good will

cause a decrease in the quantity demanded.

A decrease in a consumer's income causes his demand curve to

shift inward.

A shift in the demand curve

shifts the whole demand curve inward or outward.

Some unintended effects of the set-aside program to restrict farm acreage were that

some farmers intensified their efforts to harvest crops from the land still under cultivation and took their worst land out of production.

A steeply sloping demand curve shows

that the change in quantity demanded (x-axis) is not very sensitive to a change in price (y-axis).

The slope of a demand curve describes consumer behavior by showing

that the consumer increases his/her consumption of a good when the price goes down.

The slope of a line on a graph is defined as

the change in the y-axis variable divided by the change in the x-axis variable. "rise over run"

The slope of the line is defined by

the change in y divided by the change in x. the coefficient of Q in the demand formula P = $12-.50Q.

The slope of a downward-sloping straight line is calculated as

the distance from the vertical intercept of the line to the origin divided by the distance from the origin to the horizontal intercept of the line.

A graph of the demand curve measures

the relationship between the price of a product and the quantity demanded.

If the price of a soft drink changes from $1.00 to $2.00, then

there is a change in quantity demanded.

Economists prefer elasticities for all of the following reasons except that

they are based on total changes in units.

A relatively flat demand curve indicates that the demand for a product is very sensitive to a change in price.

true

The slope of a linear function depends on the units of measurement.

true

The vertical intercept is defined in the demand formula as the constant number.

true

When a demand curve shifts, the slope of the curve remains the same.

true

In the consumption function C = $1000 + .3Y, C is consumption and Y is national income. How much is consumption when national income is zero?

$1000

Given the demand formula for frisbees P = $8.30 − 1.23Q, what is the proper interpretation of the value of $8.30?

$8.30 represents the price that would cause the quantity of frisbees demanded to fall to zero.

Given the equation for a linear function, 20 + .67x = y, what is the value of y when x is zero?

20

Suppose a line shows that every time a family's income increases by $1, the family's spending increases by $0.90. If income increased by $300, the spending must have increased by

270

Consider the equation of linear function y = −4 + 7x. If it were graphed, the slope would be

7

The slope of a demand curve is the change in the x-axis divided by the change in the y-axis.

False

When the demand curve shifts, the intercept remains the same.

False

If one variable increases when another one increases, then we say that the two variables are

directly related

A negative relationship between variables exists when

one variable increases while the other variable decreases.