The quantity consumed of a good is relatively unresponsive to changes in price whenever demand is:
Multiple Choice Quizzes with Answer in English (Page: 415)
If quantity demanded sneakers falls by 10% when price increases 25% we know that the absolute value of the own-price elasticity of sneakers is:
If apples have an own-price elasticity of -1.2 we know the demand is:
The own-price elasticity of demand for apples is -1.2. If the price of apples falls by 5%, what will happen to the quantity of apples demanded?
The demand for good X has been estimated by QX d =12 – 3PX + 4PY. Suppose that good X sells at $2 per unit and good Y sells for $1 per unit. Calculate the own price elasticity.
Suppose the demand for a product is QX d = 10 – lnPX then product X is
As we move down along a linear demand curve, the price elasticity of demand becomes more
A price elasticity of zero corresponds to a demand curve that is:
Consider a market characterized by the following demand and supply conditions: PX = 50 – 5QX and PX = 32 + QX. The equilibrium price and quantity are, respectively,
Consider a market characterized by the following demand and supply conditions: PX = 15 – 2QX and PX = 3 + 2QX. The equilibrium price and quantity are, respectively,
An excise tax of $1.00 per gallon of….
If A and B are complementary goods, a decrease in the price of good A would:
If A and B are substitute goods, a decrease in the price of good A would:
If A and B are substitute goods, an increase in the price of good A would:
Other things held constant, the lower the price of a good
Other things held constant, the higher the price of a good
Other things held constant, the lower the price of a good
In a competitive market, the market demand is Qd = 60 – 6P and the market supply is Qs = 4P. A price floor of $9 will result in a
Suppose supply decreases and demand increases. What effect will this have on the quantity?
Suppose supply decreases and demand increases. What effect will this have on the price?