Quiz 1.docx - Which of the following is NOT addressed in...

This preview shows page 1 - 3 out of 6 pages.

Which of the following is NOT addressed in the Law of Demand? The effect of a price increase on quantity demanded. The inverse relationship between the willingness and ability of consumers to purchase a good and the price of that good. The perception of consumers that higher-prices goods are of better quality than lower- priced goods. The expectation that the demand curve for most goods in negatively sloped (downward sloping). Which of the following will change only the quantity demanded of oranges? an increase in the population a change in the price of tangerines a change in the price of oranges a decrease in the taste and preferences for oranges Suppose the demand for a good is price inleastic. We ca then expect that when the firm raises the prices, total revenues will ; decrease stay the same increase there is no relationship between price changes and total revenues Which of the following best describes the conditions necessary for a market to attain equilibrium? The quantity supplied by producers is equivalent to the quantity demanded by consumers. The price accepted by the producer for the last unit is equivalent to the price the last consumer was willing to pay. Consumers are willing and able to pay price P* for quantity Q*, and producers are willing and able to supply quantity Q* at price P*. All of the above accurately describe the conditions necessary for a market to attain equilibrium.
Image of page 1

Subscribe to view the full document.

Suppose the price of Jimmy John's Club Sandwich sells for $10 and it sells for 5 units in an hour. . Suppose the store decides to drop the price to $6, the store now sells 25 units. Based on this information and based on your calculation of own price elasticitiy of demand, we can conclude that the demand for these sandwiches is, Relatively inelastic Relatively elastic Unitary elastic Perfectly inelastic
Image of page 2
Image of page 3

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern