ch3 - Demand curve D1 is inelastic. Multiple Choice 1) If...

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Mike Lowry 700900733 Chapter 3 True/False 1) Consumers will puchase fewer tacos at higher prices than lower prices if other factors remain the same. True- if there are cheaper tacos people will buy them. Projects and Problems 5) Exhibit 3 illustrates two different demand curves with different slopes, D1 and D2. a. If the price rises from $5 to $15, by how much will consumer purchases fall if the demand curve is given by D1? b. If the price rises from $5 to $15, by how much will consumer purchases fall if the demand curve is given by D2? c. Which of the demand curves represents consumers being more responsive in their purchases to a change in the price of a good? d. Which of the demand curves would be considered relatively elastic? Which would be considered inelastic? a. Quantity will fall 5 along D1. b. Quantity will fall 15 along D2. c. Demand curve D2 shows a demand more responsive to price. d. Demand curve D2 is elastic.
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Unformatted text preview: Demand curve D1 is inelastic. Multiple Choice 1) If the price of tickets to the World Series were set below the equilibrium price, a. The Q demanded would be smaller than the Q supplied. b. The demand for World Series tickets would be highly responsive to the price. c. There would be no transactions b/w buyers and sellers of the tickets. d. The # of persons seeking to obtain tickets to the W.S. games would be greater than the # of tickets available. D- A below-equilibrium price is the results in an excess of quantity of demanded relative to quantity supplied. 2) Which of the following would cause the price of automobiles to rise? a. Decrease in the wages of autoworkers b. Reduction in the price of bus travel c. Increase in the price of gasoline d. Increase in consumer income D- Higher income would increase the demand for automobiles, causing an increase in price....
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ch3 - Demand curve D1 is inelastic. Multiple Choice 1) If...

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