A decrease in both demand and supply will cause a

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Mathematical Applications for the Management, Life, and Social Sciences
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Chapter 1 / Exercise 5
Mathematical Applications for the Management, Life, and Social Sciences
Harshbarger
Expert Verified
34 A decrease in both demand and supply will cause: a decrease in the equilibrium quantity and an uncertain effect on the equilibrium price. (True Answer )Correct an increase in the equilibrium price and a decrease in the equilibrium quantity. Incorrect an increase in the equilibrium price and an uncertain effect on the equilibrium quantity. Incorrect
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Mathematical Applications for the Management, Life, and Social Sciences
The document you are viewing contains questions related to this textbook.
Chapter 1 / Exercise 5
Mathematical Applications for the Management, Life, and Social Sciences
Harshbarger
Expert Verified
a decrease in the equilibrium price and an uncertain effect on the equilibrium quantity. Incorrect
35 If a 10% increase in the price of pork reduces quantity demanded by 7%, the price elasticity of demand is:
0.70. (
36 Consumers are more price-responsive when:
37 In market A, a 4% increase in price reduces quantity demanded by 2%. In market B, a 3% increase in price reduces quantity demanded by 4%. The price elasticity of demand in market Aand market B considered______ and ______, respectively. are elastic; inelastic Incorrect inelastic; elastic (True Answer )Correct perfectly elastic; unit elastic Incorrect unit elastic; perfectly inelastic Incorrect
38 Figure 2.7
Reference: Ref 2-7 (Figure 2.7) What is the price elasticity of demand at point Aand pointB?point A= ?2.0, point B= ?0.50 (True Answer )Correct point A= ?0.50, point B= ?0.50 Incorrect point A= ?1.0, point B= ?2.0 Incorrect point A= ?2.5, point B= ?1.5 Incorrect 39 Figure 2.8 Reference: Ref 2-8 (Figure 2.8) Which of the following statements is TRUE?I. The price elasticity of demand is less than 1 in absolute value at prices les$5. II. The price elasticity of demand is elastic at prices above $5. III. The price elasticity of demand is negative infinity at a price of $0. IV. At a price of $5, the price elasticity of demand is perfectly inelastic. III only Incorrect II and IV Incorrect
Figure 2.9
Reference: Ref 2-9 (Figure 2.9) The price elasticity of supply at a price of $4 is:

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