If apples have an own-price elasticity of -1.2 we know the demand is:
Subject: Economics Multiple Choice Quiz ( MCQ ) and Answer
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?
Suppose both supply and demand increase. What effect will this have on the equilibrium quantity?
Suppose both supply and demand increase. What effect will this have on the equilibrium price?
The seller side of the market is known as the:
Consider a market characterized by the following inverse demand and supply functions: PX = 10 – 2QX and PX = 2 + 2QX. Compute the loss in social welfare when an $8 per unit price floor is imposed on the market.