88.
Alfred Marshall recognized time in the determination of supply elasticity. His momentary
market period is shown through a short-run supply curve which is:
A. perfectly elastic.
B. elastic.
C. inel
102.
What is the effect of a rise in income on the quantity demanded of a product?
A. It will rise if it is an inferior good.
B. It will rise if it is a normal good.
C. It will fall if it has many sub
110.
Suppose that the price of Product A increased from $9 to $11 and the quantity demanded of
Product B increased from 192 to 208. What is the value of the cross elasticity?
A. + 0.2.
B. + 0.4.
C. +
36.
If the price of Moonlight massage oil decreases from $3 to $2.50 and, as a result, total revenue
increases from $6,000 to $7,500, what is the elasticity of demand?
A. 0.22.
B. 0.55.
C. 1.22.
D. 1.
Topic: 04-07 Who Pays Sales Taxes?
Type: Pickup
73.
Refer to the information above to answer this question. What will be the equilibrium price and
quantity if a $2 per unit excise tax is imposed on th
45. According to consumer research, what happens to the proportion of disposable income which is
spent by Canadians on the various product groups as the level of income increases?
A. The fraction spen
197.
What is the main determinant of the price elasticity of supply?
Time is the main determinant of supply elasticity. The longer the time involved, the greater the
supply elasticity. In the long run
65.
Refer to the graph above to answer this question. Which of the following statements is correct?
A. The demand curves in graphs I, II and III are, respectively, perfectly elastic, inelastic and
per
190.
Suppose the demand curve is perfectly inelastic and the equilibrium price is $8 and equilibrium
quantity is 9. If the government impose an excise tax of $1 per unit, what will be the new price
an
77. Refer to the above information to answer this question. For a price change from $5 to $4.50, which
consumer group has the lowest price elasticity of demand?
A. Type A.
B. Type B.
C. Type O.
D. Can
141.
How is a firm's total revenue calculated?
A. Price times average revenue.
B. Price times quantity sold.
C. Average revenue times quantity produced.
D. Quantity demanded times quantity supplied.
A
25.
Refer to the above graph to answer this question. If the price of rice crackers are $2, beer is $3,
and Carla has a budget of $14, how much of each will she purchase if she wishes to maximize
her
182.
Suppose the demand curve is perfectly inelastic and the government imposes a tax of $2 per
unit. What portion of the tax will be paid by the producer?
The more inelastic the demand curve of a pro
Difficulty: Difficult
Learning Objective: 04-04 Use real-world examples to demonstrate that the concept of elasticity is a powerful tool.
Sayre - Chapter 04 #172
Topic: 04-07 Who Pays Sales Taxes?
Typ
67. Refer to the above information to answer this question. If the price of both water and diamonds is
$120 per unit, and Lisa has $720 to spend, how many units of each would she purchase?
A. 6 water.
132.
What is the effect of a rise in income on the demand for a product?
A. It will rise if the product is an inferior product.
B. It will rise if the product is a normal product.
C. It will fall if t
Sayre - Chapter 04
28.
Refer to the information above to answer this question. What is the elasticity of demand in the
$14 to $16 range?
A. 0.02.
B. 0.7.
C. 1.4.
D. 2.1.
Blooms: Analysis, Application
13.
What will happen to the quantity demanded if the price elasticity of demand is 2 and price
increases by 10%?
A. It increases by 10%.
B. It decreases by 5%.
C. It decreases by 20%.
D. It increases
88. Refer to Table 5.13 to answer this question. What is the marginal utility of the 5th unit?
A. 10.
B. 20.
C. 100.
D. Cannot be answered from this information.
89. Refer to Table 5.13 to answer this
25. Refer to the above graph to answer this question. If the price of rice crackers are $2, beer is $3,
and Carla has a budget of $14, how much of each will she purchase if she wishes to maximize her
44.
Which of the following products has the most inelastic demand?
A. Restaurant meals.
B. Tomatoes.
C. Movie theatre admissions.
D. Eggs.
E. Ocean cruises.
Accessibility: Keyboard Navigation
Blooms:
3.
What is the amount of additional utility derived from the consumption of an extra unit of a
product called?
A. Marginal utility.
B. Optimal utility.
C. Marginal demand.
D. Optimal demand.
Accessibi
55. Refer to the above table to answer this question. Suppose that soya milk is free, how much will
Mia consume?
A. 0.
B. 4 litres.
C. 5 litres.
D. 7 litres.
E. Cannot be determined.
Suppose that Irin
80.
Refer to the graph above to answer this question. If supply was increased by 30 million
bushels, what would be the new equilibrium price and quantity?
A. $3 and 20 million bushels.
B. $3 and 50 mi
94.
Refer to the graph above to answer this question. What is the supply elasticity of S2 in the $2.50
to $4.00 range?
A. 1.15.
B. 2.17.
C. It is higher than the supply elasticity of S1 in the same pr
117.
Refer to the graphs above to answer this question. Suppose that the price of orange juice
increases from P1 to P2 and the demand curve for apple juice shifts to the right from D1 to D2.
What is t
15. Refer to the above information to answer this question. After the consumption of how many units
will total utility be maximized?
A. 4.
B. 5.
C. 7.
D. 8.
E. Cannot be determined.
16. Refer to the a
149.
Which of the following circumstances will raise the total revenue of oat farmers?
A. A good harvest, combined with inelastic demand.
B. A poor harvest, combined with inelastic demand.
C. A poor h
161.
Define elasticity coefficient
A number that measures the responsiveness of quantity demanded to a change in price
Blooms: Comprehension, Knowledge
Difficulty: Easy
Learning Objective: 04-01 Expla