Which of the following is a correct statement about the own-price elasticity of demand?
Multiple Choice Quizzes with Answer in English (Page: 409)
The demand for Cinnamon Toast Crunch brand cereal is
When a demand curve is linear,
If the own price elasticity of demand is infinite in absolute value, then
As a general rule-of-thumb, a manager can be 95 percent confident that the true value of the underlying parameter in the regression is not zero, when the absolute value of the t-statistic is
Which of the following provides a measure of the overall fit of a regression?
The statistical analysis of economic phenomenon is defined as:
You are the manager of a popular hat company. You know that the advertising elasticity of demand for your product is 0.25. How much will you have to increase advertising in order to increase demand by 5%?
If the income elasticity for lobster is.6, a 25% increase in income will lead to a
If the cross-price elasticity between ketchup and hamburgers is -2.5, a 2% increase in the price of ketchup will lead to a
If quantity demanded for sneakers falls by 6% when price increases 20% we know that the absolute value of the own-price elasticity of sneakers is
The own-price elasticity of demand for apples is -1.5. If the price of apples falls by 6%, what will happen to the quantity of apples demanded?
The demand for good X has been estimated by QX d = 6 – 2PX + 5PY. Suppose that good X sells at $3 per unit and good Y sels flor $2 per unit. Calculate the own price elasticity.
Suppose the demand for a product is QX d = 12 – 3 lnPX then product X is
Assume that the price elasticity of demand is -0.75 for a certain firm’s product. If the firm lowers price, the firm’s managers can expect total revenue to
If the demand function for a particular good is Q = 20 – 8P, then the price elasticity of demand (in absolute value) at a price of $1 is
The demand for which of the following commodities is likely to be more price inelastic?
When the price of sugar was “low”, consumers in the United States spent a total of $3 billion annually on its consumption. When the price doubled, consumer expenditures actually increased to $4 billion annually. This indicates that
The cross-price elasticity of demand for textbooks and copies of old exams is -3.5. If the price of copies of old exams increase by 10 percent, the quantity demanded of textbooks will
The elasticity of demand for gasoline has been estimated to be 2.0, and the standard error is 1.0. The upper and lower bounds on the 95 percent confidence interval for the elasticity of demand for gasoline are