quiz helpful for midterms and final (7)

quiz helpful for midterms and final (7) - Principles of...

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Principles of Economics EC 1 UCLA Dr. Bresnock Quiz 4 Choose the best answer to each question and mark it on your answer form. 1. Suppose the price elasticity of demand for oranges is 1.8. If a fall frost destroys one- third of the nation's orange crop, how will that affect total revenue from oranges, all other things unchanged? A) Not enough information is given to answer the question. B) Total revenue will remain unchanged. C) Total revenue will rise. D) Total revenue will fall. A ) B ) C ) D ) 2. When a public transit system (such as a subway or bus line) raises its fares, it may experience an increase in total revenue. This suggests that demand is: A) price elastic. B) unstable. C) unit-price elastic. D) price inelastic. A ) B ) C ) D ) 3. If a good has a price inelastic demand, then which of the following is not likely to be characteristic of this good? A) Consumers spend a small percentage of their income on the good. B) Consumers do not have much time to adjust to market changes. C) There are many substitutes for the good. D) The good is a necessity and is relatively unimportant in the household budget. A ) B ) C ) D )
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2 4. In which price range of the accompanying demand schedule is demand elastic? Quantity
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quiz helpful for midterms and final (7) - Principles of...

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