macro chapter 2 example #64246

The larger the positive cross elasticity coefficient of demand between products X and Y, the:

We would expect the cross elasticity of demand between dress shirts and ties to be

Which of the following is correct?

Suppose that the price of peanuts falls from $3 to $2 per bushel and that, as a result, the total revenue received by peanut farmers changes from $16 to $14 billion. Thus:

The more time consumers have to adjust to a change in price:

The price elasticity of demand for widgets is 0.80. Assuming no change in the demand curve for widgets, a 16 percent increase in sales implies a:

Suppose that the above total revenue curve is derived from a particular linear demand curve. That demand curve must be:

If the income elasticity of demand for lard is -3.00, this means that:

Suppose that a 20 percent increase in the price of normal good Y causes a 10 percent decline in the quantity demanded of normal good X. The coefficient of cross elasticity of demand is:

The main determinant of elasticity of supply is the:

Refer to the above information and assume the stadium capacity is 5,000. If the Mudhens' management charges $7 per ticket:

The price of old baseball cards rises rapidly with increases in demand because:

The demand for a product is inelastic with respect to price if:

If a price reduction reduces a firm's total revenue:

In which of the following instances will total revenue decline?

Suppose the income elasticity of demand for toys is +2.00. This means that:

Answer the next question(s) on the basis of the following demand schedule:Refer to the above data. Which of the following is correct?

The maker of a particular breakfast cereal found that increasing the price from $3.00 to $3.25 per box had no impact on total revenue, but increasing the price further to $3.50 reduced total revenue by 2%. Thus, the demand for the cereal is:

Refer to the diagram. In this competitive market, combined consumer and producer surplus is maximized at:

Most demand curves are relatively elastic in the upper-left portion because the original price:

The coefficient of price elasticity is 0.2. Demand is thus

Assume there is an increase in the demand for hand calculators. The subsequent:

Refer to the above information and assume the stadium capacity is 5,000. The supply of seats for the game:

Refer to the above information. Over the 5 price range, demand is

Refer to the diagram. Between the prices of $10 and $8, the price elasticity of demand is

The cross elasticity of demand between two goods is reported to be +0.2. This implies that:

The supply of product X is inelastic (but not perfectly inelastic) if the price of X rises b

Suppose legalizationand subsequent regulationof heroin and cocaine reduces their prices by 50%. Estimates suggest the total quantity of heroin and cocaine demanded would rise by 83% and 42%, respectively. Consequently, legalization would:

Refer to the diagram. Suppose total revenue at price P3 is the same as at price P2. Then, over the price range from P2 to P3, demand is:

Suppose Aiyanna's Pizzeria currently faces a linear demand curve and is charging a very high price per pizza and doing very little business. Aiyanna now decides to lower pizza prices by 5 percent per week for an indefinite period of time. We can expect that each successive week:

The elasticity of demand for a product is likely to be greater:

Suppose that a 2% increase in income in the economy decreases the quantity of gadgets demanded by 1% at every possible price. This implies that

The demand for autos is likely to be:

Cross elasticity of demand measures how sensitive purchases of a specific product are to changes in:

The demand for a necessity whose cost is a small component of one's total income is:

Over the 8 price range, the elasticity coefficient of supply is:

Suppose that when your income increases from $28,000 to $30,000 per year, your purchases of X increase from 4 to 5 units because of that income increase. Thus:

If the price elasticity of demand for a product is 2.5, then a price cut from $2.00 to $1.80 will:

Assume that the price of product Y decreases by 5% and the quantity supplied decreases by 2%. The coefficient of price elasticity of supply for good Y is

Which of the following is likely to have the most elastic demand?

Assume that a 4 percent increase in income in the economy produces an 8 percent increase in the quantity demanded of good X. The coefficient of income elasticity of demand is:

Suppose that the above total revenue curve is derived from a particular linear demand curve. That demand curve must be:

Refer to the above information and assume the stadium capacity is 5,000. If the Mudhens' management wanted a full house for the game, it would

Suppose that the above total revenue curve is derived from a particular linear demand curve. That demand curve must be

The elasticity of supply of product X is unitary if the price of X rises by:

We would expect the cross elasticity of demand between Pepsi and Coke to be

Amanda buys a ruby for $330 for which she was willing to pay $340. The minimum acceptable price to the seller, Tony, was $140. Amanda experiences:

If the price of hand calculators falls from $10 to $9 and, as a result, the quantity demanded increases from 100 to 125, then