Econ 202 Quiz 4 Ch.20 - EEEEEEEEED Review: Duiz4_ChEU [...

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Unformatted text preview: EEEEEEEEED Review: Duiz4_ChEU [ 69363639 {éjilueatlnn Snore: 1 of 1 pt 20.1 Exercise ‘1 Test 5mm: 32.5% [3.25 of in: ms.) El A Chinese restaurant finds that when it prices the dinner buffet at Salt], the restaurant sells 15C! per week. When the price is reduced to $9, the restaurant sells 200 per week. Based on this informationI use the average—values £3011th to find the price elasticin of demand for the dinner buffet. Prmride the absolute value of the price elasticin of demand. 3.33 V 2.71 {137'' {1.30 Question is complete. @J I <] D 20.1Exeroise2 {Elongation 5mm: 1 of 1 pt TnstSnnrn: 32.5% [3.25 of 10 pts} El Price elasticin ofdemand is defined as: quantin demanded divided by price. quantin demanded divided by the change in price. the percentage change in quantin demanded divided by the percentage change in price. the change in quantin demanded divided by the change in price. Question is complete. ' c69€9€96§€§€936§ t> ' {citjtzueotlon 5mm: 1 of 1 pt 20.1 Exercise 3 Test 5mm: 32.5% (3.25 of 10 pts) El What does the price elasticin ofdemand measure?I V The responsiveness ofquantin demanded to a change in the price ofa good. The change in quantin demanded when there is a 1 percent change in income. How long it takes consumers to react when there is a change in the price ofa good. Thearmruntthatthedemandcune shifts whenthere isachange inthe price ofthe good. (i) TextF’roblemEM fog-Question 5mm: as ofl pt Test Score: 32.5% (3.25 of 1:: pts} El In a local marketI the monthlyP price ofInternet access service decreases from $35 to $25, and the total quantin ofmonthl}r accounts across all Internet access providers increases from 80,000 to 130,000. What is the price elasticin ofdemand? -2.31‘ {Your comer should have two docinmfpfiaces and rhetoric the correct Sign). The demand is elastic. Roll I,.-'our mouse over the red indicators to see incorrect answers. I Qfi‘fifib If TextF’roblemED-B @Quaamn 5mm: 0.35 ofl pt TeotSnnre: 32.5% (3.25 of 1:: pts) El It is very difficult to find goods with perfectly elastic or perfectly inelastic demand. We canI howeverI find goods that lie near these extremes. Characterize the demand for the following goods as being near perfectly elastic or near perfectly inelastic. a. Corn grown and harvested by a small farmer in Iowa mar perfectly elastic Idemami h. Heroin for a drug addict near perfectly melastic demand . e. Water for a desert hitter near perfectly inelastic demand . d. One of several optional textbooks in a pass—fail course near perfectly elastic demand ‘. Roll your mouse over the red indicators to see incorrect answers. ' @63696969 D ' ICE-Question Score: 0 of 1 pt 20.2 Exercise 3 Test Score: 32.5% [3.25 of in lots} FE A firm sells 2 mfllion units ofa good when price is $4.00 and 1.8 mfllion units when price is $4.511]. The price elasticity ofdemand is: perfectly inelastic. 3‘ elastic. 1" inelastic. unitary elastic. Question is complete. G} J ' Q@@@@@@@@@D " mam“ @Queathn 5mm: 1 ofl pt Test Score: 32.5% [3.25 of 1:: p13) El Ifa firm increases the price oftheir product in the elastic portion ofthe demand curve,totalre1.?ennes will: '9' decrease. increase. first increase and then decrease. staythe same. k Question is complete. (if) 20.3Exemisea @Quaathn Score: 1 of 1 pt Tea-15mm: 32.5% [3.25 of 1c p13} 5'“ Total revenues are maximized: H" at the point (1me elasticityon the demand curve. in the elastic range ofthe demand curve. in the inelastic range ofthe demand curve. on the downward sloping portion ofthe demand curve. Question is complete. (E) I. 20.4 Exercise ‘1 @Questlon 5mm: 1 of] pt Test Score: 32.5% (3.25 of 1:: p13} El All of the following determine the price elasticity of demand except: 9' a change in the price ofresources used to produce the good. the existence of close substitutes. the length ofthe time period. the proportion ofa person‘s budget spent on the good. L Question is complete. {3' J -' 20.4ExerciseE @Quoatlon Score: 1 of 1 pt Tol'tScor‘a: 32.5% (3.25 of 1:: p13} El Which of the following would have the most elastic. demand?I Salt Electricity 9' Coca—Cola Cigarettes Question is complete. (3' ...
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Econ 202 Quiz 4 Ch.20 - EEEEEEEEED Review: Duiz4_ChEU [...

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