MICRO Elasticity CONNECT - Copy (2)

MICRO Elasticity CONNECT - Copy (2) - Assignment Print View

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Unformatted text preview: Assignment Print View http://eztomhhmmcgraW-hil1.com/hm.tpx?todo=printview Score: 200 out of 200 points (100%) ,,,, ,, V s i/ m i ‘k .2" 2 K / in ; N m ‘35 «Marti-fax f. I ‘mkkmw 19 Fuhéwfw , 7,” a” B it H a}; 1:5 2256 Quantity award: 1 10 out of 10 points In a competitive market illustrated by the diagram above, a price ceiling of $10 per unit will result in: a A shortage of 200 units A surplus of 200 units A surplus of 250 units A shortage of 250 units Learning Objective: 03-05 Identify what government set prices are and how they can cause product surpluses and shortages. Multiple Choice awa rd: 2 10 out of ' 10 points If a price ceiling is set below the equilibrium price in a market: Rationing will be unnecessary Surpluses of the commodity will develop a The quantity demanded will exceed the quantity supplied The quantity supplied will exceed the quantity demanded 10f7 9/1/2011 9:15 PM Assignment Print View http://eztomhhmmcgraW-hi11.com/hm.tpx?tod0=printview Learning Objective: 03-05 Identify what government set prices are and how they can cause product surpluses and shortages. Multiple Choice Price a w 14 2% Quantity award: 3 10 out of ' 10 points In a market with supply and demand curves as shown above, a legal price ceiling of $2.50 will result in: A surplus of 10 units A shortage of 10 units a No shortage or surplus A black market price greater than $2.50 Learning Objective: 03-05 Identify what government set prices are and how they can cause product surpluses and shortages. Multiple Choice award: 4 10 out of ' 10 points Which is most likely to be observed in a community where legal ceilings are imposed on residential rents? Poor people will be able to find adequate housing Tenants will reduce their use of housing space, making more available for others Those whose needs for housing are most urgent will be able to obtain the space they want a People moving into the community will have difficulty locating residential space to rent Learning Objective: 03-05 Identify Multiple Choice what government set prices are and how they can cause product 20f7 9/1/2011 9:15 PM Assignment Print View http://eztomhhmmcgraW-hi11.com/hm.tpx?tod0=printview surpluses and shortages. awa rd: 5 10 out of ' 10 points A government will create a surplus of a product when it: Sets a price ceiling for the product above the current equilibrium price «3 Sets a price floor for the product above the current equilibrium price Sets a price floor for the product below the current equilibrium price Subsidizes a complementary product Learning Objective: 03-05 Identify what government set prices are and how they can cause product surpluses and shortages. Multiple Choice awa rd: 6 10 out of ' 10 points The price elasticity of demand is a measure of the: Steepness or slope of a demand curve Absolute changes in quantity demanded and price a Responsiveness of quantity demanded to a change in price Sensitivity of price to changes in demand Learning Objective: 04-01 Discuss Multiple Choice price elasticity of demand and how it can be applied. award: 7 10 out of ' 10 points When the price of a product is increased 10 percent, the quantity demanded decreases 15 percent. In this range of prices, demand for this product is: “a Elastic Inelastic Cross-elastic Unitary elastic Learning Objective: 04-01 Discuss Multiple Choice price elasticity of demand and how it can be applied. 30f7 9/1/2011 9:15 PM Assignment Print View http://eztomhhmmcgraW-hi11.com/hm.tpx?tod0=printview D 1:: 3 s a; 1" (g3 a: fl (fin? €31 {fit {if} award: 8 10 out of ' 10 points Refer to the graphs above. Which one shows a perfectly elastic demand? % Graph A Graph B Graph C Graph D Learning Objective: 04-01 Discuss Multiple Choice price elasticity of demand and how it can be applied. award: 9 10 out of ' 10 points The price of season tickets to a performing arts theater decreases by 3 percent. As a result, the quantity demanded increases by 6 percent. The price elasticity of demand for season tickets is: 0.5 Learning Objective: 04-01 Discuss Multiple Choice price elasticity of demand and how it can be applied. awa rd: 100utof 10 points Total revenue falls as the price of a good is raised, if the demand for the good is: '4? Elastic Inelastic Unitary elastic Perfectly elastic Learning Objective: 04-02 Explain Multiple Choice the usefulness of the total revenue test for price elasticity of demand. 40f7 9/1/2011 9:15 PM Assignment Print View http://eztomhhmmcgraW-hi11.com/hm.tpx?tod0=printview awa rd: 11- 100utof 10 points If 100 shirts are sold when unit price is $10, while 75 shirts are sold when the unit price is $15, one can conclude that in this price range: Demand for the shirts is elastic a Demand for the shirts is inelastic Demand for the shirts has shifted to the right Consumers are quite sensitive to changes in the price of the shirt Learning Objective: 04-02 Explain Multiple Choice the usefulness of the total revenue test for price elasticity of demand. awa rd: 100utof 10 points Which is not characteristic of a product with relatively inelastic demand? The good is regarded by consumers as a necessity There are a large number of good substitutes for the good Buyers spend a small percentage of their total income on the product Consumers have had only a short time period to adjust to changes in price Learning Objective: 04-01 Discuss Multiple Choice price elasticity of demand and how it can be applied. awa rd: 100utof 10 points The price elasticity of demand increases with the length of the period considered because: Consumers' incomes will increase over time The demand curve will shift outward as time passes All prices will increase over time 4% Consumers will be better able to find substitutes Learning Objective: 04-01 Discuss Multiple Choice price elasticity of demand and how it can be applied. awa rd: 100utof 10 points A state government wants to increase the taxes on cigarettes to increase tax revenue. This tax would only be effective in raising new tax revenues if the price elasticity of demand is: Unity Elastic «3 Inelastic Perfectly elastic 50f7 9/1/2011 9:15 PM Assignment Print View http://eztomhhmmcgraW-hi11.com/hm.tpx?todo=printview Learning Objective: 04-02 Explain Multiple Choice the usefulness of the total revenue test for price elasticity of demand. award: 100utof 10 points If a product has a short-run elasticity of supply equal to zero, then an increase in the demand for the product will: Have no effect on price or quantity sold a Increase price and leave quantity sold unchanged Increase price and reduce the quantity sold to zero Leave the price unchanged and reduce the quantity sold Learning Objective: 04-03 Describe Multiple Choice price elasticity of supply and how it can be applied. awa rd: 100utof 10 points If a 10 percent increase in the price of one good results in a decrease of 5 percent in the quantity demanded of another good, then it can be concluded that the two goods are: % Complements Substitutes Independent Normal Learning Objective: 04-04 Apply Multiple Choice cross elasticity of demand and income elasticity of demand. awa rd: 100utof 10 points Airlines charge business travelers more than leisure travelers because there is a more: Elastic supply of business travel Inelastic supply of business travel Elastic demand for business travel as Inelastic demand for business travel Learning Objective: 04-01 Discuss Multiple Choice price elasticity of demand and how it can be applied. awa rd: 100utof 10 points Movie theaters charge lower prices to see a movie in the afternoon than in the evening because there is an: 60f7 9/1/2011 9:15 PM Assignment Print View http://eztomhhmmcgraW-hi11.com/hm.tpx?todo=printview Inelastic supply of movies in the evening Elastic demand to see movies in the evening a Elastic demand to see movies in the afternoon Inelastic demand to see movies in the afternoon Learning Objective: 04-01 Discuss Multiple Choice price elasticity of demand and how it can be applied. award: 100utof 10 points When universities announce a large tuition increase and follow it with an announcement that more financial aid will be available, they are assuming that students who pay full tuition: Have elastic demand and students who use financial aid have inelastic demand 44* Have inelastic demand and students who use financial aid have elastic demand View a college education as an inferior good and students who use financial aid view it as a normal good View a college education as a normal good and students who use financial aid view it as an inferior good Learning Objective: 04-01 Discuss Multiple Choice price elasticity of demand and how it can be applied. awa rd: 10 out of 10 points For which product is the income elasticity of demand most likely to be negative? Computer software % Used clothing Basketballs Bread Learning Objective: 04-04 Apply Multiple Choice cross elasticity of demand and income elasticity of demand. 70f7 9/1/2011 9:15 PM ...
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This note was uploaded on 10/23/2011 for the course ECON 201 taught by Professor Staff during the Spring '08 term at Northern Virginia Community College.

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MICRO Elasticity CONNECT - Copy (2) - Assignment Print View

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