When marginal revenue is positive, demand is
Subject: Economics Multiple Choice Quiz ( MCQ ) and Answer
When marginal revenue is zero, total revenue
When marginal revenue is zero, demand will be
Which of the following is a correct statement about the own-price elasticity of demand?
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