question
Shelter for homeless people is an example of
answer
a need
question
If the price of cheese falls by 1 percent and the quantity demanded rises by 3 percent, then the price elasticity of demand for cheese is equal to:
answer
3
question
If a 10% decrease in price for a good results in a 20% increase in quantity demanded, the price elasticity of demand is
answer
elastic
question
Suppose a 10% increase in the price of aspirin leads to a 5% decrease in the quantity demanded of aspirin. The demand for aspirin, therefore, is:
answer
inelastic
question
Suppose the price of a Snickers candy bar is $2 at both the airport and the grocery store. The price elasticity of demand for a Snickers candy bar at the airport is likely to be _______ the price elasticity of demand for a Snickers bar at the grocery store.
answer
less than
question
Demand tends to be _______ in the short run than in the long run
answer
less elastic
question
If the elasticity of demand for the latest American Idol album is 1.4, this means:
answer
a 5% increase in the price leads to a 7% decrease in quantity demanded
question
Which of the following is NOT a characteristic of a perfectly competitive market?
answer
Each firm in the market sells a somewhat different variant of the good
question
Jenny sells lemonade in front of her house in the summer. Several other kids in Jenny's neighborhood also run lemonade stands in the summer. If the lemonade market is perfectly competitive and Jenny is charging the equilibrium price, then Jenny can increase her revenue if she:
answer
keeps the price of her lemonade the same and increases the output
question
The long run is best described as:
answer
a period of time sufficiently long that all factors of production are variable
question
An increase in the price a firm receives for its output will lead the firm to:
answer
expand output
question
Which of the following will cause an increase market supply?
answer
A technological innovation that lowers the marginal cost of producing the good
question
The championship game will be held next weekend in your college's 40,000-seat stadium. The supply of tickets to the game:
answer
is perfectly inelastic
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