Explain elasticity of demand

Assignment Help Microeconomics
Reference no: EM13173090

1. The absolute value of the short-run elasticity of demand for bread has been estimated to be 0.15. Its long-run elasticity of demand is:
A. uncertain without more information.
B. more than 0.15.
C.0.15.
D. less than 0.15.

2. All of the following determine the price elasticity of demand except:
A. a change in the price of resources used to produce the good.
B. the existence of close substitutes.
C. the proportion of a person's budget spent on the good.
D. the length of the time period.

3. A student organization finds that when it prices logo emblazoned at $12, the organization sells 200 per day. When the price is reduced to $10, the organization sells 250 per week. Based on this information, use the average-values formula to find the price elasticity of demand for logo emblazoned shirts. Provide the absolute value of the price elasticity of demand.
A. 1.50
B. 0.67
C. 1.22
D. 0.82

4. What does the price elasticity of demand measure?
A.The amount that the demand curve shifts when there is a change in the price of the good.
B.The responsiveness of quantity demanded to a change in the price of a good.
C.The change in quantity demanded when there is a 1 percent change in income.
D. HOW long it takes consumers to react when there is a change in the price of a good.

5. Income elasticity of demand:
A. measures the responsiveness of price to a change in income.
B. measures the responsiveness of quantity demanded to a change in income and refers to the movement along the demand curve.
C. measures the responsiveness of quantity demanded to a change in income and refers to the vertical shift of the demand curve.
D. measures the responsiveness of quantity demanded to a change in income and refers to the horizontal shift of the demand curve

6. Total revenues are maximized:
A. in the inelastic range of the demand curve.
B. on the downward sloping portion of the demand curve.
C. in the elastic range of the demand curve.
D. at the point of unit elasticity on the demand curve

7.We should expect the cross price elasticity of butter and margarine to be:
a. negative since they are complements.
b. positive since they are complements.
c. positive since they are substitutes
d. negative since they are substitutes.

 

8. When personal income in the country rises, so do alcohol consumption and traffic fatalities. It can be said that:
A. alcohol is a normal good and has a unit price elasticity of demand.
B. alcohol is an inferior good and has a positive income elasticity of demand.
C. alcohol is a normal good and has a positive income elasticity of demand.
D. none of the above.

 

9. If a firm increases the price of their product in the elastic portion of the demand curve, total revenues will:
A. stay the same.
B. increase.
C. decrease.
D. first increase and then decrease.


10. A firm sells 2 million units of a good when price is $4.00 and 1.8 million units when price is $4.50. B. The price elasticity of demand is:
A. inelastic.
B. unitary elastic.
C. elastic.
D. perfectly inelastic

Reference no: EM13173090

Previous Q& A

  Which of the following is a property of acid solutions

Which of the following is a property of acid solutions?

  State working with the percent-by-mass

When square brackets are placed around the formula for a substance, such as [NaOH], it indicates that we are working with the percent-by-mass

  Military lessons learned

This is the first of two written assignments that will deal with the lessons to be learned from the American experience of the Vietnam War. This assignment deals specifically with military lessons learned.

  State analyze the proteins by electrophoresis

When you analyze the proteins by electrophoresis, you find that protein B moves further towards the positive end of the gel. Explain if this result is consistent with your hypothesis about the difference between the two proteins.

  What is the solubility of lead fluoride in a solution

What is the solubility of lead fluoride in a solution of 0.050 M of sodium fluoride?

  State an intermediate in a chemical reaction is a species

An intermediate in a chemical reaction is a species that the reactant molecules interact with during an early step in a reaction that is regenerated

  What is the molarity of the carbonate ion

What is the molarity of the carbonate ion in sodium carbonate, Na2CO3, prepared by dissolving 3.5 g of sodium carbonate in enough water to form 0.800 L of solution?

  Prepare a contribution margin income statement

Prepare a contribution margin income statement separating all variable and fixed costs into their own categories and determine the breakeven point in units and dollars. Also, determine the number of units and dollars that need to be sold to make a ..

  What is the relationship between k and kc

What is the relationship between K and Kc?

  How many grams of precipitate will be formed

a saturated solution of potassium chlorate is dissolved in 100g of water. If the saturated solution is cooled from 90oC to 60oC, how many grams of precipitate will be formed?

Reviews

Write a Review

 

Similar Q& A

  Demand for energy in the united states

The demand for energy in the United States is often described as persistently non-cyclical and not sensitive to prices effects. Describe the effect of each of the following on the demand or supply for gasoline.

  Explanation of velocity of money

The bank is constructing a new Internet banking strategy to entice new consumers to sign up. Your manager has asked you to contribute to this strategy through describing how money works.

  Discuss the appropriate target value and the actions

Build a Balanced Scorecard for unit of the comapny for which you work. Identify the strategic objectives of the entire company and the secondary objectives for the unit.

  Evaluate the quality of the model

Test the null hypotheses that the slope terms are individually insignificant using one-tailed t-tests using a .05 level of significance and evaluate the quality of the model.

  Difference between private, public and open access goods

Explain and discuss the differences between private goods, public goods, natural monopolies, and open-access goods.

  How did the immigration to the us impact manuel

Examine the history of immigration to the United States from the Cape Verde Islands. How did the immigration to the US impact Manuel?

  World real gdp and the price level

Assume the recent volcanic events in Iceland, which disrupted European air travel significantly, represented just starting. In other words, assume that experts forecast a world-wide series of big eruptions from active volcanoes.

  Computing the concentration ratio

Industry structure is often examine through computing the 4-company Concentration Ratio. Assume you have an industry with 20 firms and the CR is 30 percent.

  Considerations of product features-use of advertising

Create a list of reasons for your recommendation and include considerations of product features and use of advertising.

  Opec conflicting motives

Why were the members of OPEC trying to agree to cut production? Why do you suppose OPEC was unable to agree on cutting production? Why did the oil market go into 'turmoil' as a result?

  Which curve in the labor market for meat packers

What sectors of the labor market are forecast to be the strongest in your region- locality What advice would you give young workers who are preparing to enter the workforce in a few years

  How market structure affects market performance

Explain how market structure affects market performance and conduct. Identify three types of government regulation that help to improve market performance and conduct

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd