Question 1

As gasoline prices increased throughout 2010 and into 2011,consumers began to explore alternatives to driving their cars and more people eventually ended up using public transportation.This exemplifies that for a specific product,the longer the time period involved,

Accepted Answer

A)  the larger (in absolute value) the price elasticity of demand.
B)  the smaller (in absolute value) the price elasticity of demand.
C)  the closer the price elasticity of demand is to reaching a value of zero.
D)  the more people come to rely on that product.

Question 2

Between 1950 and 2011 the productivity of wheat farmers in the United States more than doubled.This means that

Accepted Answer

A)  the amount of land and other resources devoted to wheat production more than doubled.
B)  the incomes of wheat farmers more than doubled.
C)  the total amount of wheat produced more than doubled.
D)  the amount of wheat produced by the average farmer more than doubled.

Question 3

From 1950 to 2011 the number of people who lived on farms fell from 23 million to fewer than 3 million? Which of the following factors have contributed to this trend?

Accepted Answer

A)  increases in the cost of farming and a desire for young adults to move to urban areas
B)  rapid growth in farm production and low income and price elasticities for food products
C)  slow growth in agricultural productivity and low income elasticities for food products
D)  government policies that have increased the cost of living and working on farms

Question 4

The government of Bassaland is looking for new revenue sources.It is considering imposing an excise tax on two goods: palm wine and diapers.If the price elasticity of demand for the goods are -0.47 and -1.89 respectively,which good should it tax if the goal is to raise revenue? If the government wants to tax only one good,which good should it tax if the goal is to discourage consumption? Explain your answer.

Accepted Answer

If the goal is to raise revenue,it shoul...

Question 5

The current price of canvas messenger bags is $36 each and sales of the bags equal 400 per week.If the price elasticity of demand is -2.5 and the price changes to $44,how many messenger bags will be sold per week? Use the midpoint formula.

Accepted Answer

Using the midpoint formula: -2.5 = (400 ...

Question 6

Suppose that when the price per ream of recycled printer paper rises from $4 to $4.50,the quantity demanded falls from 800 to 600 reams per day.Using the midpoint formula,what is the price elasticity of demand (in absolute value) over this range?

Accepted Answer

A)  0.003
B)  0.41
C)  2.43
D)  4 C

Question 7

If the absolute value of the price elasticity of demand for DVD movies is 0.8 then the elasticity of demand for the DVD for the movie The Hangover should be

Accepted Answer

A)  less then 0.8 in absolute value.
B)  greater than 0.8 in absolute value.
C)  equal to 1 in absolute value.
D)  equal to zero because the DVD of this movie has been out for several years.

Question 8

Table 6-5
  The town of Bloomfield is well known for its basketball team.The price of basketball game tickets is determined by market forces.Table 6-5 above shows the demand and supply schedules for basketball games tickets.
-Refer to Table 6-5.What is the most distinctive feature of the supply curve?

Accepted Answer

A)  The supply curve is perfectly inelastic.
B)  The supply curve is horizontal.
C)  The supply curve is upward sloping.
D)  The supply curve is perfectly elastic.

Question 9

Which of the following statements is true?

Accepted Answer

A)  In general,if a product has few substitutes it will have an elastic demand.
B)  The more time that passes the more inelastic the demand for a product becomes.
C)  The demand curve for a necessity is more elastic than the demand curve for a luxury.
D)  The more narrowly we define a market,the more elastic the demand for a product will be.

Question 10

Which of the following could explain why the demand for table salt is inelastic?

Accepted Answer

A)  Salt is a luxury good.
B)  Salt is a rare commodity.
C)  Households devote a very small portion of their income to salt purchases.
D)  Salt is a luxury for high income consumers but a necessity for low income consumers.

Question 11

The demand for The Federalist Papers is likely to be more elastic than the demand for a best-selling mystery novel.

Accepted Answer

A) True 
 B)False

Question 12

The absolute value of the price elasticity of demand for telescopes is 1.5.Therefore,telescopes can be classified as a luxury.

Accepted Answer

A) True 
 B)False

Question 13

Suppose you have surveyed a few industries and obtained information about the income elasticity of demand for their products.If you expect that the economy is headed for a long recession,you would advise people to look for jobs in an industry with

Accepted Answer

A)  a high positive income elasticity coefficient such as 5.
B)  a low positive income elasticity coefficient such as 0.8.
C)  a "high" negative income elasticity coefficient such as -4.
D)  a "low" negative income elasticity coefficient such as -0.2.

Question 14

If demand is inelastic,the absolute value of the price elasticity coefficient is greater than one.

Accepted Answer

A) True 
 B)False  False

Question 15

Which of the following is not a determinant of a good's price elasticity of demand?

Accepted Answer

A)  the slope of the demand curve
B)  the share of the good in the consumer's total budget
C)  whether the good is a luxury or a necessity
D)  the passage of time

Question 16

The paradox of American farming is

Accepted Answer

A)  the demand for imported luxury food products has risen as the demand for domestic food products has fallen.
B)  the demand for food has risen as the number of people who pursue farming as a career has fallen.
C)  food has become cheaper and more abundant as the number of farms has decreased.
D)  the amount of food produced has increased as the average farm size has fallen.

Question 17

If the quantity supplied of walkie-talkies increases by 5 percent when prices increase by 12 percent,then

Accepted Answer

A)  the supply of walkie-talkies is inelastic.
B)  the supply of walkie-talkies is elastic.
C)  the walkie-talkie supply curve will shift to the right.
D)  the walkie-talkie supply curve will shift to the left. A

Question 18

Assume that the demand curve for sunblock is linear and downward sloping.Which of the following statements about the slope of the demand curve for sunblock and the price elasticity of demand for sunblock are true?

Accepted Answer

A)  The slope and the price elasticity of demand are constant at all points along the demand curve for sunblock.
B)  The slope is constant,but the price elasticity of demand is not constant at all points along the demand curve for sunblock.
C)  The slope is not constant,but the price elasticity of demand is constant at all points along the demand curve for sunblock.
D)  The slope of the demand curve for sunblock is constant and equal to zero; demand is perfectly inelastic.

Question 19

Which of the following pairs of goods is likely to have a negative cross-price elasticity of demand?

Accepted Answer

A)  pancakes and syrup
B)  hot dogs and hamburgers
C)  orange juice and grapefruit juice
D)  peanuts and cat food

Question 20

The estimated price elasticities of demand for the products listed in the table as "Product A" are from Table 6-2 in the text.Indicate whether the products listed as "Product B" will have a more elastic or less elastic demand than the corresponding Product A.

Accepted Answer

The answer of The estimated price elasticities of demand for...

Exam 6: Elasticity: the Responsiveness of Demand and Supply

As gasoline prices increased throughout 2010 and into 2011,consumers began to explore alternatives to driving their cars and more people eventually ended up using public transportation.This exemplifies that for a specific product,the longer the time period involved,

Correct Answer
verified

Between 1950 and 2011 the productivity of wheat farmers in the United States more than doubled.This means that

Correct Answer
verified

From 1950 to 2011 the number of people who lived on farms fell from 23 million to fewer than 3 million? Which of the following factors have contributed to this trend?

Correct Answer
verified

Correct Answer
verified
If the goal is to raise revenue,it shoul...
View Answer

The current price of canvas messenger bags is $36 each and sales of the bags equal 400 per week.If the price elasticity of demand is -2.5 and the price changes to $44,how many messenger bags will be sold per week? Use the midpoint formula.

Correct Answer
verified
Using the midpoint formula: -2.5 = (400 ...
View Answer

Suppose that when the price per ream of recycled printer paper rises from $4 to $4.50,the quantity demanded falls from 800 to 600 reams per day.Using the midpoint formula,what is the price elasticity of demand (in absolute value) over this range?

Correct Answer
verified
C

If the absolute value of the price elasticity of demand for DVD movies is 0.8 then the elasticity of demand for the DVD for the movie The Hangover should be

Correct Answer
verified

Table 6-5 The town of Bloomfield is well known for its basketball team.The price of basketball game tickets is determined by market forces.Table 6-5 above shows the demand and supply schedules for basketball games tickets. -Refer to Table 6-5.What is the most distinctive feature of the supply curve?

Correct Answer
verified

Which of the following statements is true?

Correct Answer
verified

Which of the following could explain why the demand for table salt is inelastic?

Correct Answer
verified

The demand for The Federalist Papers is likely to be more elastic than the demand for a best-selling mystery novel.

Correct Answer
verified

The absolute value of the price elasticity of demand for telescopes is 1.5.Therefore,telescopes can be classified as a luxury.

Correct Answer
verified

Suppose you have surveyed a few industries and obtained information about the income elasticity of demand for their products.If you expect that the economy is headed for a long recession,you would advise people to look for jobs in an industry with

Correct Answer
verified

If demand is inelastic,the absolute value of the price elasticity coefficient is greater than one.

Correct Answer
verified
False

Which of the following is not a determinant of a good's price elasticity of demand?

Correct Answer
verified

The paradox of American farming is

Correct Answer
verified

If the quantity supplied of walkie-talkies increases by 5 percent when prices increase by 12 percent,then

Correct Answer
verified
A

Assume that the demand curve for sunblock is linear and downward sloping.Which of the following statements about the slope of the demand curve for sunblock and the price elasticity of demand for sunblock are true?

Correct Answer
verified

Which of the following pairs of goods is likely to have a negative cross-price elasticity of demand?

Correct Answer
verified

The estimated price elasticities of demand for the products listed in the table as "Product A" are from Table 6-2 in the text.Indicate whether the products listed as "Product B" will have a more elastic or less elastic demand than the corresponding Product A.

Correct Answer
verified

Exam 6: Elasticity: the Responsiveness of Demand and Supply

As gasoline prices increased throughout 2010 and into 2011,consumers began to explore alternatives to driving their cars and more people eventually ended up using public transportation.This exemplifies that for a specific product,the longer the time period involved,

Correct AnswerverifiedShow Answer

Between 1950 and 2011 the productivity of wheat farmers in the United States more than doubled.This means that

Correct AnswerverifiedShow Answer

From 1950 to 2011 the number of people who lived on farms fell from 23 million to fewer than 3 million? Which of the following factors have contributed to this trend?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedIf the goal is to raise revenue,it shoul...View AnswerShow Answer

The current price of canvas messenger bags is $36 each and sales of the bags equal 400 per week.If the price elasticity of demand is -2.5 and the price changes to $44,how many messenger bags will be sold per week? Use the midpoint formula.

Correct AnswerverifiedUsing the midpoint formula: -2.5 = (400 ...View AnswerShow Answer

Suppose that when the price per ream of recycled printer paper rises from $4 to $4.50,the quantity demanded falls from 800 to 600 reams per day.Using the midpoint formula,what is the price elasticity of demand (in absolute value) over this range?

Correct AnswerverifiedC

If the absolute value of the price elasticity of demand for DVD movies is 0.8 then the elasticity of demand for the DVD for the movie The Hangover should be

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following statements is true?

Correct AnswerverifiedShow Answer

Which of the following could explain why the demand for table salt is inelastic?

Correct AnswerverifiedShow Answer

The demand for The Federalist Papers is likely to be more elastic than the demand for a best-selling mystery novel.

Correct AnswerverifiedShow Answer

The absolute value of the price elasticity of demand for telescopes is 1.5.Therefore,telescopes can be classified as a luxury.

Correct AnswerverifiedShow Answer

Suppose you have surveyed a few industries and obtained information about the income elasticity of demand for their products.If you expect that the economy is headed for a long recession,you would advise people to look for jobs in an industry with

Correct AnswerverifiedShow Answer

If demand is inelastic,the absolute value of the price elasticity coefficient is greater than one.

Correct AnswerverifiedFalse

Which of the following is not a determinant of a good's price elasticity of demand?

Correct AnswerverifiedShow Answer

The paradox of American farming is

Correct AnswerverifiedShow Answer

If the quantity supplied of walkie-talkies increases by 5 percent when prices increase by 12 percent,then

Correct AnswerverifiedA

Assume that the demand curve for sunblock is linear and downward sloping.Which of the following statements about the slope of the demand curve for sunblock and the price elasticity of demand for sunblock are true?

Correct AnswerverifiedShow Answer

Which of the following pairs of goods is likely to have a negative cross-price elasticity of demand?

Correct AnswerverifiedShow Answer

The estimated price elasticities of demand for the products listed in the table as "Product A" are from Table 6-2 in the text.Indicate whether the products listed as "Product B" will have a more elastic or less elastic demand than the corresponding Product A.

Correct AnswerverifiedShow Answer

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If the goal is to raise revenue,it shoul...
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Using the midpoint formula: -2.5 = (400 ...
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C

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False

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A

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