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Using Exhibit D-6, whose “quantity demanded” experiences the largest percentage

 Using Exhibit D-6, whose “quantity demanded” experiences the largest percentage
                            increase when the price falls from $2 to $1?

a. Albert

b. Betty

c. Carl

d. Dana

e. Edward

142.              If goods X and Y are such that the cross price elasticity between them is negative, and if
                            the income elasticity of X is negative, then these goods are

a. inferior complements

b. luxury complements

c. income elastic substitutes

d. normal substitutes

e. income elastic complements

143.              Imagine the government would like to increase revenues by taxing the people. If they
                            place a unit tax on certain goods, this is equivalent to

a. c and e

b. shifting the demand curve to the right

c. reducing everyone’s income by the amount of the unit tax

d. raising the fixed costs of producers

e. shifting the supply curve to the left

144.              Governments seeking to maximize total tax revenue will place unit taxes on goods
                            with the

a. b and c

b. lowest income elasticity

c. highest cross elasticity

d. lowest price elasticity

e. fewest complements

145.              For suppliers, the ________________ elasticity is greater than the _____________
                            elasticity because they have ______________.

a. short run supply; long run supply; no time to adjust

b. short run price; long run supply; time to adjust

c. long run supply; short run price; no time to adjust

d. short run supply; long run price; time to adjust

e. long run supply; short run supply; time to adjust

146.              There are two methods of calculating elasticities. One calculates the ratio of the
                            percentage changes in quantity and price, and the other calculates the average percentage
                            changes in quantity and price. We use the second method because it

a. involves an additional calculation

b. is not sensitive to direction of movement

c. is sensitive to direction of movement

d. is never wrong

e. always has the same sign

147.              Which answer ranks the elasticities of supply from highest to lowest?

a. market-day, short-run, long-run

b. short-run, long-run, market-day

c. long-run, short-run, market-day

d. short-run, market-day, long-run

e. long-run, market-day, short-run

 

 

148.              We know that increases in population increase the market demand for various goods. The
                            prices of those goods will increase the most if the elasticity of supply is

a. very large

b. equal to one

c. greater than 3

d. very small

e. finite

149.              The numerical value of a price elasticity represents the percentage amount by which the
                            quantity demanded changes when the price

a. increases by 1 unit

b. changes by 1 percent

c. is in equilibrium

d. is fixed in the market

e. falls by 1 dollar

150.              One response to increased oil prices, which reflects long-run elasticity and not short-run
                            elasticity, is

a. gasoline rationing

b. fewer joy rides

c. shorter family vacations

d. smaller cars

e. less winter heat

Dec 09 2019 Read more Less More

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