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Price elasticity of demand is generally a greater in

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79.Price elasticity of demand is generally:A. greater in the long run than in the short run.B. greater in the short run than in the long run.C. the same in both the short run and the long run.D. greater for "necessities" than it is for "luxuries."80.Which of the following generalizations isnotcorrect?A. The larger an item is in one's budget, the greater the price elasticity of demand.B. The price elasticity of demand is greater for necessities than it is for luxuries.C.The larger the number of close substitutes available, the greater will be the price elasticity of demandfor a particular product.D. The price elasticity of demand is greater the longer the time period under consideration.81.If price and total revenue vary in opposite directions, demand is:A. perfectly inelastic.B. perfectly elastic.C. relatively inelastic.D. relatively elastic.82.The demand for a luxury good whose purchase would exhaust a big portion of one's income is:A. perfectly price inelastic.B. perfectly price elastic.C. relatively price inelastic.D. relatively price elastic.83.The demand for a necessity whose cost is a small portion of one's total income is:A. perfectly price inelastic.B. perfectly price elastic.C. relatively price inelastic.D. relatively price elastic.84.The price elasticity of supply measures how:A. easily labor and capital can be substituted for one another in the production process.B. responsive the quantity supplied of X is to changes in the price of X.C. responsive the quantity supplied of Y is to changes in the price of X.D. responsive quantity supplied is to a change in incomes.85.The main determinant of elasticity of supply is the:A. number of close substitutes for the product available to consumers.B. amount of time the producer has to adjust inputs in response to a price change.C. urgency of consumer wants for the product.D. number of uses for the product.86.Suppose the supply of product X is perfectly inelastic. If there is an increase in the demand for thisproduct, equilibrium price:A. will decrease but equilibrium quantity will increase.B. and quantity will both decrease.C. will increase but equilibrium quantity will decline.D. will increase but equilibrium quantity will be unchanged.
87.Refer to the above table. Over the $6-$4 price range, supply is:A. perfectly elastic.B. elastic.C. perfectly inelastic.D. inelastic.

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Term
Summer
Professor
NoProfessor
Tags
Supply And Demand, Betty, Mr Chan

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