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Assume the supply curve shifts to the right by a given amount at each price. Price in the market will decline the most if demand is more: price elastic and supply is more price inelastic. price

Assume the supply curve shifts to the right by a given amount at each price. Price in the market will decline the most if demand is more:

  price elastic and supply is more price inelastic.
  price inelastic and supply is more price inelastic.
  price elastic and supply is more price elastic.
  price inelastic and supply is more price elastic.

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Question 21 pts

If income increases and the consumption of bagels increases, bagels are considered a(n):

  negative good.
  positive good.
  inferior good.
  normal good.

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Question 31 pts

The price elasticity of demand for fresh tomatoes has been estimated to be -2.22. If a new insecticide and fertilizer treatment yields a 20 percent increase in the nation's fresh tomato crop, how will that affect total expenditures on fresh tomatoes, all other things unchanged?

  total expenditures will remain unchanged
  total expenditures will fall
  total expenditures will rise
  not enough information is given to answer the question

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Question 41 pts

Suppose that the cross price elasticity of demand for Mountain Dew with respect to the price of Coke is 0.7. This implies that the two goods are:

  substitutes.
  complements.
  inferior.
  normal.

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Question 51 pts

If the price elasticity of demand is found to be -6, then demand is:

  price inelastic.
  price elastic.
  unit price elastic.
  horizontal.

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Question 61 pts

The arc price elasticity of demand method is best used for:

  small changes in price.
  large changes in quantity demanded.
  large changes in both price and quantity demanded.
  infinitely large changes in price.

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Question 71 pts

If the price elasticity of demand is found to be -3/4, then demand is:

  price inelastic.
  price elastic.
  unit price elastic.
  positively sloped.

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Question 81 pts

The concept of price elasticity of demand is most closely related to:

  the equilibrium price.
  the equilibrium quantity.
  a movement along the demand curve.
  a shift in the demand curve.

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Question 91 pts

(Exhibit: Demand for Macintosh Computers) The seller's total revenue at point S equals the:

  distance 0P.
  distance MS.
  area 0TUM.
  area 0PSM.

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Question 101 pts

The price elasticity of demand measures the ratio of the percentage change in demand to the percentage change in price.

  True
  False

Aug 23 2021 View more View Less

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