physics test

If a severe drought destroys a significant portion of the peanut crop and peanut farmers' revenues increase, which of the following is true over the observed range of prices?

B. The demand for penuts must be price elastic

Suppose that the demand for SOFT DRINKS is price elastic and the supply is price inelastic. If the government imposes a sales tax on soft drinks which of the following will occur in the short run

B. The tax burden will fall more on producers

Graph

B. price paid by buyers: $8 price received by sellers: $4 deadweight loss $200

If a 10 percent increase in the price of a good leads to a 25 percent decrease in the quantity demanded of the good, demand is

B. relatively elastic

(graph) the graph above shows the market for good X the letters in the graph denote the encloses areas if the government imposes an excise tax of t dollars on each unit of good X blah blah

A. Consumer Surplus: A Producer Surplus: G Deadweight Loss: D+E

If the market demand for a good is inelastic and the supply is elastic, which of the following is true when there is an increase in sales tax

A. Consumers will bear most of the burden of the tax

If a store raises its prices by 20 percent and its total revenue increases by 10 percent, the demand it faces in tis price range must be

A. inelastic

Assume that demand for BOTTLED WATER is relatively price elastic. An increase in supply of bottled water will result in what

A. A decrease in price, leading to an increase in total revenue

KYLE spent all of his allocated budget on video games and comic books. To maximize his utility Kyle should have purchased

B. Fewer video games and more comic books

Which of the following is true of the cross-price elasticity of demand

B. It is greater than zero for two goods that are substitutes.

(Graph) The total amount of tax collected by the government is equal to

B. P1 GIP2

Aaliyah's ICE CREAM consumption if she consumes 6 units what is total utility

C. 18

Which of the following is true in the elastic range of a firm's demand curve

C. A decrease in price will likely lead to an increase in total revenue

Assume the income elasticity of demand for good Z equals −5.0. Which of the following is true?

C. An increase in income will lead to a decrease in demand

The absolute value of the price elasticity of demand for a good increases when

C. Consumers spend greater portion of their budget on the good

Given the cost and demand schedules depicted above, if the firm increased output from q1 to q2 it would

C. Experience a decline in profits

If a 10 percent increase in the price of good X results in a 20 percent decrease in the quantity of good Y demanded, which of the following is true?

C. Good X and good Y are complementary goods, and the cross-price elasticity is -2.

An ART STUDENT blah blah

C. Pencils: buy more Pads: Buy less

Suppose that the government imposes a per-unit tax on the producers of a good that has a perfectly inelastic demand. After the tax, the price and quantity of the good sold would change in which of the following ways

C. Price: increase Quantity: Not change

(graph) Which of the following bears the total tax burden

C. The consumers and the producers each bear a part of it

Promoters of a ROCK GROUP $8, 400 ppl

C. Unit elastic

The cross-price elasticity of demand between good X and good Z measures the percentage change in the quantity demanded of good X in response to a percentage change in

C. the price of good Z

After the government imposed a 0.20 per gallon tax on GASOLINE, the price of a gallon of gasoline increased from 1 to 1.15. Which is true?

C. Consumers bear most, but not all, of the tax burden

(graph) According to the diagram what is the dollar amount of the unit tax

D. $1.00

To determine whether two goods are complements, one would calculate the

D. Cross-price elasticity of demand

Suppose that the demand for VEGETABLES is price elastic. If the price of vegetables increases by 5 percent, the quantity of vegetables demanded would

D. Decrease by more than 5 percent

Graph (demand curve)

D. Demand curve X: relatively inelastic Demand curve Y: perfectly elastic

Moving from left to right along a downward-sloping linear demand curve, price elasticity varies in which of the following ways

D. First elastic, then unit elastic, and finally inelastic

SANDRA income milk decrease from 10 cartons to 6

D. Less than zero and therefore milk is an inferior good

Assume that the supply of CORN is relatively price inelastic, while the demand for corn is relatively price elastic. If the government imposes a per-unit excise tax on the production of corn, the incidence of the tax will fall.

D. More on sellers than on buyers

If the demand for a good is perfectly price inelastic in the short run and the supply curve is upward sloping, imposing a sales tax on the good will

D. Not change the after-tax revenues received by suppliers

(Graph) What is the price paid by consumers and the net price received by producers after the tax is paid

D. Paid by consumers: $10.45 Received by producers: $9.45

If the income elasticity of demand for good x is negative and the cross-price elasticity of demand between good X and Y is negative which is true about good X

D. X is an inferior good and is a complement to Y

(graph) The deadweight loss created by the tax is equal to

D. GKI

Which of the following statements relating to income elasticity is true

D. With an income elasticity of 5, a 10 percent increase in income will lead to a 50 percent increase in the quantity demanded of the good

Which of the following relationships among the price elasticity of demand, change in price, and change in total revenue is consistent

E. Price elasticity of demand: inelastic Change in price: decrease Change in total revenue: decrease

If the price elasticity of supply for PICKLES is 2 and the price of pickles increases by 10 percent, then the quantity of pickles will increase by

E. 20%

Which of the following must be true if the revenues of WHEAT farmers increase when the price of what increases

E. The demand for wheat is price elastic

Assume that a competitive industry producing a normal good is in LONG-RIM equilibrium. If average consumer income decreases, which of the following changed will occur

E. short-run price: decrease short-run industry output: decrease movement firms: exit

The marginal benefit of consuming a good is

E. the maximum amount a consumer is willing to pay for one more unit of the good