Question 1

- Refer to the table above. Starting at a $5 price, at what price range does demand become inelastic?

Accepted Answer

A)   $1-2
B)   $2-3
C)   $3-4
D)   $4-5

Question 2

If in the short run the demand for mass transit is inelastic and in the long run the demand is elastic, then a price:

Accepted Answer

A)   increase will decrease total revenue in the short run but increase total revenue in the long run.
B)   increase will increase total revenue in the short run but decrease total revenue in the long run.
C)   decrease will increase total revenue in the short run but decrease total revenue in the long run.
D)   decrease will decrease total revenue in the short run and decrease total revenue in the long run.

Question 3

When universities announce a large tuition increase and follow it with an announcement that more financial aid will be available, they are assuming that students who pay full tuition:

Accepted Answer

A)   have elastic demand and students who use financial aid have inelastic demand.
B)   have inelastic demand and students who use financial aid have elastic demand.
C)   view a college education as an inferior good and students who use financial aid view it as a normal good.
D)   view a college education as a normal good and students who use financial aid view it as an inferior good.

Exam 4: Elasticity of Demand and Supply

When universities announce a large tuition increase and follow it with an announcement that more financial aid will be available, they are assuming that students who pay full tuition:

Correct Answer
verified

If in the short run the demand for mass transit is inelastic and in the long run the demand is elastic, then a price:

Correct Answer
verified

- Refer to the table above. Starting at a $5 price, at what price range does demand become inelastic?

Correct Answer
verified

Exam 4: Elasticity of Demand and Supply

When universities announce a large tuition increase and follow it with an announcement that more financial aid will be available, they are assuming that students who pay full tuition:

Correct AnswerverifiedShow Answer

If in the short run the demand for mass transit is inelastic and in the long run the demand is elastic, then a price:

Correct AnswerverifiedShow Answer

- Refer to the table above. Starting at a $5 price, at what price range does demand become inelastic?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified