Quiz6-8 - Quiz 6 1 Question 1 0 out of 1 points Refer to...

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Unformatted text preview: Quiz 6 1 Question 1 0 out of 1 points Refer to the above information. Over the $9-$7 price range, demand is: Selected Answer: [None Given] Correct Answer: elastic. Question 2 0 out of 1 points Cross elasticity of demand measures how sensitive purchases of a specific product are to changes in: Selected Answer: [None Given] Correct Answer: the price of some other product. Question 3 0 out of 1 points The narrower the definition of a product: Selected Answer: [None Given] Correct Answer: the larger the number of substitutes and the larger the price elasticity of demand. Question 4 0 out of 1 points Price elasticity of demand is generally: Selected Answer: [None Given] Correct Answer: greater in the long run than in the short run. Question 5 0 out of 1 points If the price elasticity of demand for a product is 2.5, then a price cut from $2.00 to $1.80 will: Selected Answer: [None Given] Correct Answer: increase the quantity demanded by about 25 percent. Question 6 0 out of 1 points The above diagram concerns supply adjustments to an increase in demand ( D 1 to D 2 ) in the immediate market period, the short run, and the long run. In the immediate market period the increase in demand will: Selected Answer: [None Given] Correct Answer: increase equilibrium price, but not equilibrium quantity. Question 7 0 out of 1 points An efficiency loss (or deadweight loss) declines in size when a unit of output is produced for which: Selected Answer: [None Given] Correct Answer: maximum willingness to pay exceeds minimum acceptable price. Question 8 0 out of 1 points Refer to the above diagram and assume a single good. If the price of the good decreases from $6.30 to $5.70, consumer spending would: Selected Answer: [None Given] Correct Answer: decrease if demand were D 2 only. Question 9 0 out of 1 points Suppose that when your income increases from $28,000 to $30,000 per year, your purchases of X increase from 4 to 5 units because of that income increase. Thus: Selected Answer: [None Given] Correct Answer: the demand for X is elastic with respect to income. Question 10 0 out of 1 points Suppose the price of local cable TV service increased from $16.20 to $19.80 and as a result the number of cable subscribers decreased from 224,000 to 176,000. Along this portion of the demand curve, price elasticity of demand is: Selected Answer: [None Given] Correct Answer: 1.2. 2 Question 1 0 out of 1 points Price elasticity of demand is generally: Selected Answer: [None Given] Correct Answer: greater in the long run than in the short run. Question 2 0 out of 1 points The demand for a luxury good whose purchase would exhaust a significant portion of one's income is: Selected Answer: [None Given] Correct Answer: relatively elastic....
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This note was uploaded on 02/10/2011 for the course ECON 201 taught by Professor Ron during the Spring '10 term at Edmonds Community College.

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Quiz6-8 - Quiz 6 1 Question 1 0 out of 1 points Refer to...

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