If the income elasticity for lobster is 0.4, a 40% increase in income will lead to a:
Subject: Economics Multiple Choice Quiz ( MCQ ) and Answer
An income elasticity less than zero tells us that the good is:
The elasticity that measures the responsiveness of consumer demand to changes in income is the:
Suppose the demand function is QX d = 100 – 8PX + 6PY – M. If PX = $4, PY = $2, and M = $10, what is the cross-price elasticity of good x with respect to the price of good y?
If the price of pork chops falls from $8 to $6, and this leads to an increase in demand for apple sauce from 100 to 140 jars, what is the cross price-elasticity of apple sauce and pork chops at a pork chop price of $6?
If the cross-price elasticity between ketchup and hamburgers is -1.2, a 4% increase in the price of ketchup will lead to a 4.8% ____?
If the cross-price elasticity between good A & B is negative, we know the goods are:
The elasticity which shows the responsiveness of the demand for a good due to changes in the price of a related good is the:
We would expect the own price elasticity of demand for food to be:
Demand is more inelastic in the short-term because consumers:
We would expect the demand for jeans to be:
Lemonade, a good with many close substitutes, should have an own-price elasticity that is:
Which of the following factors would not affect the own-price elasticity of a good?
Suppose QX d = 10,000 – 2 PX + 3 PY – 4.5M , where PX = $100, PY = $50, and M = $2,000. How much of good X is consumed?
Suppose QX d = 10,000 – 2 PX + 3 PY – 4.5M , where PX = $100, PY = $50, and M = $2,000. Then good X has a demand which is:
Suppose QX d = 10,000 – 2 PX + 3 PY – 4.5M , where PX = $100, PY = $50, and M = $2,000. What is the own-price elasticity of demand?
The demand curve for a good is horizontal when it is:
Demand is perfectly elastic when the absolute value of the own price elasticity of demand is:
If a price increase from $5 to $7 causes quantity demanded to fall from 150 to 100, what is the absolute value of the own-price elasticity at a price of $7?
If the absolute value of the own-price elasticity of steak is 0.4, a decrease in price will lead to:
The quantity consumed of a good is relatively unresponsive to changes in price whenever demand is:
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: