Suppose that there are only three consumers of a product At a price of 6 per

Suppose that there are only three consumers of a

This preview shows page 9 - 12 out of 42 pages.

Question 12 of 205.0/ 5.0 PointsSuppose that there are only three consumers of a product. At a price of $6 per unit, the first consumer would buy 12 units of the product, the second consumer would buy 8 units, and the third consumer would buy 3 units of the product. If you drew a market demand curve for this product, the quantity demanded at a price of $6 would be __________ . A. 23 unitsB. 20 unitsC. 12 unitsD. 11 units Question 13 of 205.0/ 5.0 PointsThe price elasticity of demand reflects the responsiveness of __________ . Question 14 of 205.0/ 5.0 PointsSuppose that in a month the price of a dozen of eggs increases from $1.50 to $2. At the same time, the quantity of dozens of eggs demanded decreases from 200 to 150. The price elasticity of demand for dozens of eggs is __________ .
Image of page 9
Question 15 of 205.0/ 5.0 PointsSuppose that Victoria and her friends are running a fundraiser by selling donuts. They want to know what will happen to their revenue if they increase the price of each donut from $0.80 to $1. What concept do they need to apply to find out their expected revenue? Question 16 of 205.0/ 5.0 PointsIf a competitive market operates perfectly, it relies on __________ . A. the number of people buying goodsB. the laws of supply and demandC. how many products can be produced for saleD. how much people are willing to pay for the products Question 17 of 205.0/ 5.0 PointsIn considering the relationships between price and quantity demanded, ceteris paribus directs the economist toassume that __________ . Question 18 of 205.0/ 5.0 PointsThe quantity demanded of a product increases as __________ .
Image of page 10
Question 19 of 200.0/ 5.0 PointsThe price elasticity of demand is calculated by __________ .
Image of page 11
Image of page 12

You've reached the end of your free preview.

Want to read all 42 pages?

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture