Suppose the demand for good X is lnQX d = 21 – 0.8 lnPX – 1.6 lnPY + 6.2 lnM + 0.4 lnAX. Then we know that the own-price elasticity for good X is:
Topic: The Production Process and Costs Quiz ( MCQ and Answer )
Suppose the demand for good X is lnQX d = 21 – 0.8 lnPX – 1.6 lnPY + 6.2 lnM + 0.4 lnAX. Then we know good x is:
Suppose the demand for good X is lnQX d = 21 – 0.8 lnPX – 1.6 lnPY + 6.2 lnM + 0.4 lnAX. Then we know goods x and y are:
You are the manager of a popular shoe company. You know that the advertising elasticity of demand for your product is 0.15. How much will you have to increase advertising in order to increase demand by 10%?
Suppose demand is given by QX d = 50 – 4PX + 6PY + AX , where PX = $4, PY = $2, and AX = $50. What is the quantity demanded of good X?
Suppose demand is given by QX d = 50 – 4PX + 6PY + AX, where PX = $4, PY = $2, and AX = $50. What is the advertising elasticity of demand for good X?
You are the manager of a supermarket and know that the income elasticity of peanut butter is exactly -0.7. Due to the recession, you expect incomes to drop by 15% next year. How should you adjust your purchase of peanut butter?
If the income elasticity for lobster is 0.4, a 40% increase in income will lead to a:
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: