Question 1

The cross elasticity between computers and software is

Accepted Answer

A)  negative because they are substitutes. 
B)  positive because they are substitutes. 
C)  negative because they are complements. 
D)  positive because they are complements. 
E)  positive because they are normal goods. 
A)  negative because they are substitutes. 
B)  positive because they are substitutes. 
C)  negative because they are complements. 
D)  positive because they are complements. 
E)  positive because they are normal goods.

Question 2

Water is considered a necessity.So,is the demand for water elastic or inelastic?

Accepted Answer

The demand for neces

Question 3

What is the formula for the price elasticity of demand? The percentage change in the

Accepted Answer

A)  quantity demanded divided by the percentage change in the price of a substitute or complement. 
B)  quantity supplied divided by the percentage change in price. 
C)  quantity demanded divided by the percentage change in price. 
D)  quantity demanded divided by the percentage change in income. 
E)  equilibrium quantity demanded divided by the equilibrium price. 
A)  quantity demanded divided by the percentage change in the price of a substitute or complement. 
B)  quantity supplied divided by the percentage change in price. 
C)  quantity demanded divided by the percentage change in price. 
D)  quantity demanded divided by the percentage change in income. 
E)  equilibrium quantity demanded divided by the equilibrium price.

Question 4

When the price of Ford pickup trucks rises from $18,000 to $19,000,the quantity of Chevy trucks demanded increases from 112,000 to 144,000.What does the cross elasticity of demand between Ford and Chevy trucks equal?

Accepted Answer

In this case,the cross elasticity of dem

Question 5

What is an inferior good?

Accepted Answer

A)  a product of low quality that we do not want to purchase 
B)  a product for which demand increases when income increases, and demand decreases when income decreases 
C)  a product for which demand increases when income decreases, and demand decreases when income increases 
D)  a product that is complementary 
E)  a product that is a substitute for another, better good 
A)  a product of low quality that we do not want to purchase 
B)  a product for which demand increases when income increases, and demand decreases when income decreases 
C)  a product for which demand increases when income decreases, and demand decreases when income increases 
D)  a product that is complementary 
E)  a product that is a substitute for another, better good

Question 6

When the percentage change in the quantity demanded is less than the percentage change in price,then demand is

Accepted Answer

A)  inelastic. 
B)  unit elastic. 
C)  elastic. 
D)  irrelevant. 
E)  undefined. 
A)  inelastic. 
B)  unit elastic. 
C)  elastic. 
D)  irrelevant. 
E)  undefined.

Question 7

If the price elasticity of demand for moose hunting lessons is 4.23,then the demand for moose hunting lessons is

Accepted Answer

A)  elastic. 
B)  unit elastic. 
C)  inelastic. 
D)  perfectly unit elastic. 
E)  perfectly elastic. 
A)  elastic. 
B)  unit elastic. 
C)  inelastic. 
D)  perfectly unit elastic. 
E)  perfectly elastic.

Question 8

If the price doubles and the quantity supplied also doubles,the price elasticity of supply for the good is

Accepted Answer

A)  -1. 
B)  1. 
C)  -2. 
D)  2. 
E)  100 percent. 
A)  -1. 
B)  1. 
C)  -2. 
D)  2. 
E)  100 percent.

Question 9

If a substitute good is easy to find,then demand for a good is

Accepted Answer

A)  elastic. 
B)  inelastic. 
C)  unit elastic. 
D)  perfectly inelastic. 
E)  Substitutes don't have any effect on elasticity. 
A)  elastic. 
B)  inelastic. 
C)  unit elastic. 
D)  perfectly inelastic. 
E)  Substitutes don't have any effect on elasticity.

Question 10

The price of a bag of pretzels rises from $2 to $3 and the quantity demanded decreases from 100 to 60.What is the price elasticity of demand?

Accepted Answer

A)  1.0 
B)  1.25 
C)  40.0 
D)  20.0 
E)  0.80 
A)  1.0 
B)  1.25 
C)  40.0 
D)  20.0 
E)  0.80

Question 11

Sergio's rentals of Blu-ray movies increase by 10 percent when her income increases by 30 percent.Based on this information,we know that for Sergio Blu-ray movies

Accepted Answer

A)  are complements. 
B)  are substitutes. 
C)  are inferior goods. 
D)  have an inelastic demand. 
E)  are normal goods. 
A)  are complements. 
B)  are substitutes. 
C)  are inferior goods. 
D)  have an inelastic demand. 
E)  are normal goods.

Question 12

If the cross elasticity of demand for DVD players and DVDs equals -2,then the products are

Accepted Answer

A)  unrelated. 
B)  complements. 
C)  inferior goods. 
D)  substitutes. 
E)  normal goods. 
A)  unrelated. 
B)  complements. 
C)  inferior goods. 
D)  substitutes. 
E)  normal goods.

Question 13

Consider two goods: peanut butter and jelly.If the price of jelly increases from $2 a jar to $3 per jar and the quantity demanded of peanut butter decreases from 50 jars to 45 jars,what is the cross elasticity of demand? Are the goods substitutes or complements?

Accepted Answer

The cross elasticity

Question 14

When the price of a product increases from $35 to $45,the quantity supplied increases from 30 units to 40 units per week.Using the midpoint method,the price elasticity of supply is

Accepted Answer

A)  0.00. 
B)  -1.1. 
C)  1.14. 
D)  1.35. 
E)  0.88. 
A)  0.00. 
B)  -1.1. 
C)  1.14. 
D)  1.35. 
E)  0.88.

Question 15

The lower the level of income in a country,the

Accepted Answer

A)  less income elastic is the demand for food. 
B)  more income elastic is the demand for food. 
C)  more negative the income elasticity of the demand for food. 
D)  Both answers A and C are correct. 
E)  Both answers A and B are correct. 
A)  less income elastic is the demand for food. 
B)  more income elastic is the demand for food. 
C)  more negative the income elasticity of the demand for food. 
D)  Both answers A and C are correct. 
E)  Both answers A and B are correct.

Question 16

"The price elasticity of demand is a measure of how sensitive demanders are to changes in the price of a product." Is this statement true or false?

Accepted Answer

The assertion is true.All elasticities m

Question 17

Of the following,which good has the most elastic demand?

Accepted Answer

A)  food 
B)  breakfast food 
C)  cereal 
D)  Post Raisin Bran 
E)  Post Raisin Brand purchased at a Safeway grocery store 
A)  food 
B)  breakfast food 
C)  cereal 
D)  Post Raisin Bran 
E)  Post Raisin Brand purchased at a Safeway grocery store

Question 18

If a lower price for good X increases the demand for good Y,the cross elasticity value for the two goods is

Accepted Answer

A)  negative. 
B)  equal to zero. 
C)  positive and less than one. 
D)  positive and greater than one. 
E)  possibly negative, positive, or zero, but there is not enough information to decide. 
A)  negative. 
B)  equal to zero. 
C)  positive and less than one. 
D)  positive and greater than one. 
E)  possibly negative, positive, or zero, but there is not enough information to decide.

Question 19

If the cross elasticity of demand between Coke and Pepsi is 2.02,then Coke and Pepsi are

Accepted Answer

A)  complements. 
B)  substitutes. 
C)  normal goods. 
D)  inferior goods. 
E)  Both answers B and C are correct. 
A)  complements. 
B)  substitutes. 
C)  normal goods. 
D)  inferior goods. 
E)  Both answers B and C are correct.

Question 20

If the price elasticity of demand for a product is 2.5,then a price increase of 1.5 percent decreases the quantity demanded by

Accepted Answer

A)  1.55 percent. 
B)  3.50 percent. 
C)  5.00 percent. 
D)  3.75 percent. 
E)  1.00 percent. 
A)  1.55 percent. 
B)  3.50 percent. 
C)  5.00 percent. 
D)  3.75 percent. 
E)  1.00 percent.

The cross elasticity between computers and software is

Water is considered a necessity.So,is the demand for water elastic or inelastic?

What is the formula for the price elasticity of demand? The percentage change in the

When the price of Ford pickup trucks rises from $18,000 to $19,000,the quantity of Chevy trucks demanded increases from 112,000 to 144,000.What does the cross elasticity of demand between Ford and Chevy trucks equal?

What is an inferior good?

When the percentage change in the quantity demanded is less than the percentage change in price,then demand is

If the price elasticity of demand for moose hunting lessons is 4.23,then the demand for moose hunting lessons is

If the price doubles and the quantity supplied also doubles,the price elasticity of supply for the good is

If a substitute good is easy to find,then demand for a good is

The price of a bag of pretzels rises from $2 to $3 and the quantity demanded decreases from 100 to 60.What is the price elasticity of demand?

Sergio's rentals of Blu-ray movies increase by 10 percent when her income increases by 30 percent.Based on this information,we know that for Sergio Blu-ray movies

If the cross elasticity of demand for DVD players and DVDs equals -2,then the products are

Consider two goods: peanut butter and jelly.If the price of jelly increases from $2 a jar to $3 per jar and the quantity demanded of peanut butter decreases from 50 jars to 45 jars,what is the cross elasticity of demand? Are the goods substitutes or complements?

When the price of a product increases from $35 to $45,the quantity supplied increases from 30 units to 40 units per week.Using the midpoint method,the price elasticity of supply is

The lower the level of income in a country,the

"The price elasticity of demand is a measure of how sensitive demanders are to changes in the price of a product." Is this statement true or false?

Of the following,which good has the most elastic demand?

If a lower price for good X increases the demand for good Y,the cross elasticity value for the two goods is

If the cross elasticity of demand between Coke and Pepsi is 2.02,then Coke and Pepsi are

If the price elasticity of demand for a product is 2.5,then a price increase of 1.5 percent decreases the quantity demanded by

Getting Started

The Usand Global Economies

The Economic Problem

Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Taxes

Global Markets in Action

Externalities

Public Goods and Common Resources

Markets With Private Information

Consumer Choice and Demand

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Markets for Factors of Production

Economic Inequality

Filters

Exam 5: Elasticities of Demand and Supply

The cross elasticity between computers and software is

Water is considered a necessity.So,is the demand for water elastic or inelastic?

What is the formula for the price elasticity of demand? The percentage change in the

When the price of Ford pickup trucks rises from $18,000 to $19,000,the quantity of Chevy trucks demanded increases from 112,000 to 144,000.What does the cross elasticity of demand between Ford and Chevy trucks equal?

What is an inferior good?

When the percentage change in the quantity demanded is less than the percentage change in price,then demand is

If the price elasticity of demand for moose hunting lessons is 4.23,then the demand for moose hunting lessons is

If the price doubles and the quantity supplied also doubles,the price elasticity of supply for the good is

If a substitute good is easy to find,then demand for a good is

The price of a bag of pretzels rises from $2 to $3 and the quantity demanded decreases from 100 to 60.What is the price elasticity of demand?

Sergio's rentals of Blu-ray movies increase by 10 percent when her income increases by 30 percent.Based on this information,we know that for Sergio Blu-ray movies

If the cross elasticity of demand for DVD players and DVDs equals -2,then the products are

Consider two goods: peanut butter and jelly.If the price of jelly increases from $2 a jar to $3 per jar and the quantity demanded of peanut butter decreases from 50 jars to 45 jars,what is the cross elasticity of demand? Are the goods substitutes or complements?

When the price of a product increases from $35 to $45,the quantity supplied increases from 30 units to 40 units per week.Using the midpoint method,the price elasticity of supply is

The lower the level of income in a country,the

"The price elasticity of demand is a measure of how sensitive demanders are to changes in the price of a product." Is this statement true or false?

Of the following,which good has the most elastic demand?

If a lower price for good X increases the demand for good Y,the cross elasticity value for the two goods is

If the cross elasticity of demand between Coke and Pepsi is 2.02,then Coke and Pepsi are

If the price elasticity of demand for a product is 2.5,then a price increase of 1.5 percent decreases the quantity demanded by

Getting Started

The Usand Global Economies

The Economic Problem

Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Taxes

Global Markets in Action

Externalities

Public Goods and Common Resources

Markets With Private Information

Consumer Choice and Demand

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Markets for Factors of Production

Economic Inequality

Filters