Micro test4

Micro test4 - 1 If when the price of a product rises from...

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1 ) If, when the price of a product rises from $1.50 to $2, the quantity demanded of the product decreases from 1000 to 900, the price elasticity of demand coefficient, using the midpoint formula, is (10pts) .37 + 2 ) You are the sales manager for a pizza company and have been informed the the price elasticity of demand for you most popularpizza is greater than 1. To increase total revenue, you should (10pts) decrease the price of the pizza + 3 ) A study shows that the coefficient of the cross elasticity of Coke and Sprite is negative. This information indicates that Coke and Sprite are (10pts) complementary goods + 4 ) If a 5% fall in the price of a commodity causes quantity supplied to decrease by 8%, supply is (10pts) unit-elastic + 5 ) From a time perspective, the demand for most products is (10pts) more elastic int he long run than in the short run + 6 )
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This note was uploaded on 12/01/2011 for the course ECON 1023 taught by Professor Kent during the Spring '11 term at ASU.

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Micro test4 - 1 If when the price of a product rises from...

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