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CH20RTF

# CH20RTF - CHAPTER 20 Demand and Supply Elasticities and...

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CHAPTER 20 Demand and Supply: Elasticities and Government-Set Prices Topic Question numbers ___________________________________________________________________________________________________ 1. Review of demand and supply 1-8 2. Price elasticity of demand 9-47 3. Total revenue test 48-83 4. Determinants of price elasticity 84-101 5. Applications of price elasticity 102-108 6. Elasticity of supply 109-132 7. Cross and income elasticity 133-155 8. Legal and disequilibrium prices 156-175 Last Word 176-177 True-False 178-197 ___________________________________________________________________________________________________ Multiple Choice Questions Review of demand and supply 1. A "change in demand" means: A) a change in the elasticity of a demand curve. B) the shift of a demand curve. C) a movement along a specific demand schedule or curve. D) that quantity demanded changes as price changes. 2. Suppose that a severe frost destroys one-half of Florida's orange crop. As a result, we would expect: 3. Suppose we observe over a period of time that the price and the quantity sold of a certain product have both increased. One explanation might be that: Page 1

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4. In which of the following instances is the effect on equilibrium price indeterminate, that is, dependent on the magnitude of the shifts in supply and demand? 5. If the money income of a consumer decreases and, as a result, his or her demand for product X increases, product X is: A) a normal good. B) a complementary good. C) a substitute good. D) an inferior good. 6. Which of the following could not cause an increase in the supply of wheat? 7. If the price of product K decreases, the demand for close substitute product M will: 8. The income and substitution effects explain why: Price elasticity of demand
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CH20RTF - CHAPTER 20 Demand and Supply Elasticities and...

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