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

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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.

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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
• Fall '17
• SyedH.Jafri

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