question
The price elasticity of demand equals the magnitude of the
answer
percentage change in the quantity demanded of a good divided by the percentage change in its price
question
To determine the effect a 25 percent increase in the price of apples has on the quantity of apples demanded, you must know the value of the
answer
price elasticity of demand
question
Because of an increase in the price of leather, the average price of a pair of women's dress shoes increased 12 percent. If the price elasticity of demand for women's dress shoes is 0.85, what will happen?
answer
the number of pairs of women's dress shoes they demand will fall by 10.2 percent
question
If a 20 percent increase in the price of a used car results in a 10 percent decrease in the quantity of used cars demanded, then the price elasticity of demand equals
answer
0.5
question
When the price of a movie ticket increases for $5 to $7, the quantity of tickets demanded decreases from 600 to 400 a day. What is the price of elasticity of demand for the movie tickets?
answer
1.20
question
If a consumer is relatively insensitive to changes in the price of a good, then the consumer's demand for the good is
answer
inelastic
question
Demand is price elastic if a
answer
relatively small price increase leads to a relatively large decrease in the quantity demanded
question
The demand curve for microwave popcorn is linear. Which of the following definitely makes the demand for microwave popcorn more elastic?
answer
a decrease in the microwave popcorn
question
Demand is inelastic when a price ______ results in total revenue
answer
rise; increasing
question
If a product has very few substitutions, demand elasticity is likely to be
answer
inelastic
question
If the cross elasticity of demand between two goods is -0.56, then a fall in price of one good leads to a ____ shift in the ___ of the other good
answer
rightward, demand
question
The income elasticity of demand is ______ for a normal good and ______ for an inferior good
answer
positive, negative
question
If the elasticity of supply of TV sets is equal to 3, then a 10 percent increase in the price of a TV will
answer
increase the quantity supplied by 30 percent
question
If the supply for a good is elastic, that means that when price increases the
answer
quantity supplied will increase by a greater percentage than the price increased
question
Economists define the short run as a period of time so short that
answer
at least one factor of production cannot be varied
question
Total product is..
answer
maximum output that a given quantity of labor can produce
question
Marginal product is..
answer
the increase in output that results from a one-unit increase in the quantity of labor employed with all the other remaining the same
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
