Microeconomics Exam 2

When studying how some event or policy affects a market, elasticity provides information on the

The price elasticity of demand measures how much

Demand is said to be inelastic if

Suppose that gasoline prices increase dramatically this month. Lola commutes 100 miles to work each weekday. Over the next few months, Lola drives less on the weekends to try to save money. Within the year, she sells her home and purchases one only 10 miles from her place of employment. These examples illustrate the importance of

Midpoint method

Suppose the price of a bag of frozen chicken nuggets decreases from $6.50 to $5.75 and, as a result, quantity of bags demanded increases from 600 to 800. Using the midpoint method, the price elasticity of demand for frozen chicken nuggets in the given price range is

If the price elasticity of demand for a good is 4, then a 12 percent decrease in price results in a

Elasticity of demand is closely related to the slope of the demand curve. The more responsive buyers are to a change in price, the

If the price elasticity of demand for apples is 0.8, then a 2.4% increase in the price of apples will decrease the quantity demanded of apples by

Graph of Price vs. Quantity (Demand)

Refer to Figure 1. When the price is $15, total revenue is

Refer to Figure 1. When the price falls from $25 to $20, demand is

Refer to Figure 1. An increase in price from $10 to $15 would

Refer to Figure 1. An increase in price from $15 to $20 would

A key determinant of the price elasticity of supply is the

If the price elasticity of supply is 1.2, and price increased by 55%, quantity supplied would

Suppose the price elasticity of supply for cheese is 0.6 in the short run and 1.4 in the long run. If an increase in the demand for cheese causes the price of cheese to increase by 15%, then the quantity of supplies of cheese will increase by

At price of $1.20, a local pencil manufacturer is willing to supply 150 boxes per day. At a price of $1.40, the manufacturer is willing to supply 170 boxes per day. Using the midpoint method, the price of elasticity of supply is about

Scenario 1. Milk has an inelastic demand, and beef has an elastic demand. Suppose that a mysterious increase in bovine infertility decreases both the population of dairy cows and the population of beef cattle by 50 percent

Refer to Scenario 1. The equilibrium price will

Refer to Scenario 1. The equilibrium quantity will

Refer to Scenario 1. The change in equilibrium price will be

Refer to Scenario 1. The change in equilibrium quantity will be

Refer to Scenario 1. Total consumer spending on milk will

Consumer surplus is equal to the

Table 1. Buyer and Willingness to Pay

Refer to Table 1. If the price of the produce is $110, then who will be willing to purchase the product?

Refer to Table 1. If the price of the product is $130, then who would be willing to purchase the product?

Refer to Table 1. If the price of the product is $90, then who would be willing to purchase the product?

Refer to Table 1. If the price of the product is $122, then the total consumer surplus is

Refer to Table 1. If the price of the product is $135, then the total consumer surplus is

Refer to Table 1. If the market price is $105

Figure 7-4 Price vs. Quantity (Demand)

Refer to Figure 7-4. Which area represents consumer surplus at a price of P1

Refer to Figure 7-4. Which area represents consumer surplus at a price of P2

Refer to Figure 7-4. Which area represents the increase in consumer surplus when the price falls from P1 to P2

Refer to Figure 7-4. When the price falls from P1 to P2, which area represents the increase in consumer surplus to existing buyers

Refer to Figure 7-4. When the price falls from P1 to P2, which area represents the increase in consumer surplus to new buyers entering th emarket

Bill created a new software program he is willing to sell for $200. He sells his first copy and enjoys a producer surplus of $150. What is the price paid for the software

Table 2. Seller and Cost

Rent control laws dictate

Minimum wage laws dictate

Which of the following is the most likely explanation for the imposition of a price ceiling on the market for milk

If the price floor is not binding, then

If the government removes a binding price floor from a market, then the price paid by buyers will

Figure 3