A) The flatter supply curve represents a supply that is inelastic relative to the supply represented by the steeper supply curve.
B) The steeper supply curve represents a supply that is inelastic relative to the supply represented by the flatter supply curve.
C) Given two prices with which to calculate the price elasticity of supply,that elasticity is the same for both curves.
D) A decrease in demand will increase total revenue if the steeper supply curve is relevant,while a decrease in demand will decrease total revenue if the flatter supply cure is relevant.
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True/False
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Multiple Choice
A) The price elasticity of demand for a good measures the willingness of buyers of the good to buy less of the good as its price increases.
B) Price elasticity of demand reflects the many economic,psychological,and social forces that shape consumer tastes.
C) Other things equal,if good x has close substitutes and good y does not have close substitutes,then the demand for good x will be more elastic than the demand for good y.
D) All of the above are correct.
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True/False
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Multiple Choice
A) elastic section of the demand curve.
B) inelastic section of the demand curve.
C) unit elastic section of the demand curve.
D) perfectly elastic section of the demand curve.
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Multiple Choice
A) 0.4 percent decrease in the quantity demanded.
B) 2.5 percent decrease in the quantity demanded.
C) 4 percent decrease in the quantity demanded.
D) 40 percent decrease in the quantity demanded.
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Multiple Choice
A) The demand for illegal drugs is inelastic.
B) Interdiction results in drug addicts having a greater need for quick cash.
C) Interdiction results in an increase in the amount of money needed to buy the same amount of drugs.
D) Government drug programs are more lenient now with drug offenders than they were in the 1980s.
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Multiple Choice
A) $150.
B) $200.
C) $288.
D) $364.
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Multiple Choice
A) less than 1.
B) greater than 1.
C) equal to 1.
D) equal to 0.
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Multiple Choice
A) 1.89
B) 1.26
C) 0.53
D) 0.34
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Multiple Choice
A) income elasticity of demand for that good.
B) price elasticity of demand for that good.
C) price elasticity of supply for that good.
D) cross-price elasticity of demand for that good.
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True/False
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True/False
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Multiple Choice
A) 1.66%,and aluminum foil sellers' total revenue will increase as a result.
B) 1.66%,and aluminum foil sellers' total revenue will decrease as a result.
C) 3.48%,and aluminum foil sellers' total revenue will increase as a result.
D) 3.48%,and aluminum foil sellers' total revenue will decrease as a result.
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Multiple Choice
A) supply curve A
B) supply curve B
C) supply curve C
D) There is no difference in the elasticity of the three supply curves.
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Multiple Choice
A) 0.55.
B) 1.83.
C) 2
D) 10.
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True/False
Correct Answer
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Multiple Choice
A) elastic section of the demand curve.
B) inelastic section of the demand curve.
C) unit elastic section of the demand curve.
D) perfectly elastic section of the demand curve.
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Multiple Choice
A) perfectly elastic.
B) inelastic.
C) unit elastic.
D) elastic,but not perfectly elastic.
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Multiple Choice
A) Supply curves are steeper over long periods of time than over short periods of time.
B) Buyers of goods tend to be more responsive to price changes over long periods of time than over short periods of time.
C) The number of firms in a market tends to be more variable over long periods of time than over short periods of time.
D) Firms prefer to change their prices in the short run rather than in the long run.
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