Home / Questions / In order to prove that Dr. Pepper and 7-Up are substitutes, the FTC should test the

In order to prove that Dr. Pepper and 7-Up are substitutes, the FTC should test the

In order to prove that Dr. Pepper and 7-Up are substitutes, the FTC should test the
                            __________ and get a __________.

a. price elasticity of demand; number less than 1

b. income elasticity; positive number

c. price elasticity; negative number

d. price elasticity of demand; number greater than 1

e. cross elasticity; positive number

182.              Suppose that the quantity of apples sold increases by 30 percent after the price of pears
                            increases by 15 percent. What is the coefficient of cross elasticity of demand?

a. 3.0

b. 1.5

c. 0.2

d. 2.0

e. 0.3

 

 

 

 

 

 

183.              If the price of a good doubles and quantity supplied triples, then

a. demand is elastic

b. demand is inelastic

c. supply is inelastic

d. supply is elastic

e. there is insufficient information to reach any conclusion about the price elasticity of
supply

184.              If a tripling of price triples the quantity of a good supplied, the price elasticity of supply
                            for this good is

a. 3

b. 300

c. 1

d. –1

e. –3

185.              Governments can use price elasticity of demand to estimate how changes in excise tax
                            rates will affect

a. income

b. prices

c. tax revenues

d. government spending

e. profits

186.              If an excise tax is placed on a product that has a price elasticity of demand equal to zero,               then the

a. entire tax will be paid by the consumer

b. entire tax will be paid by the producer

c. consumer and producer will each pay a share of the tax

d. incidence of the tax cannot be determined unless we know the coefficient of price
elasticity of supply

e. tax is progressive

Dec 09 2019 Read more Less More

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