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Below are some data on price,income and demand for five different time periods. Below are some data on price,income and demand for five different time periods. -Refer to the information above to answer this question.What is the price elasticity of demand for product Y between years 3 and 4? A) 0.89. B) 1.13. C) 2.67. D) None of the choices are correct. -Refer to the information above to answer this question.What is the price elasticity of demand for product Y between years 3 and 4?


A) 0.89.
B) 1.13.
C) 2.67.
D) None of the choices are correct.

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A straight-line (constant-sloped)demand curve does not imply constant elasticity.

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During an economic slowdown,should investors invest in an industry that produces goods whose demand is income elastic or income inelastic?

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An industry that produces a good whose d...

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-Refer to the graph above to answer this question.What is the supply elasticity of S<sub>2</sub> in the $2.50 to $4.00 range? A) 1.15. B) 2.17. C) It is higher than the supply elasticity of S<sub>1</sub> in the same price range. D) It is lower than the supply elasticity of S<sub>1</sub> in the same price range. E) None of the choices are correct. -Refer to the graph above to answer this question.What is the supply elasticity of S2 in the $2.50 to $4.00 range?


A) 1.15.
B) 2.17.
C) It is higher than the supply elasticity of S1 in the same price range.
D) It is lower than the supply elasticity of S1 in the same price range.
E) None of the choices are correct.

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Define 'elasticity of supply'.How is it calculated?

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The responsiveness o...

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On what type of products do governments impose "sin" taxes?


A) On products with elastic demand such as candy.
B) On products with inelastic demand such as alcohol.
C) On illegal products.
D) On consumer goods but not capital goods.

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What is the price elasticity of demand coefficient?


A) A number that measures the responsiveness of quantity demanded to a change in price.
B) A number that measures the responsiveness of quantity demanded to a change in demand.
C) A number that measures the responsiveness of price to a change in the quantity demanded.
D) A number that measures the responsiveness of price to a change in demand.

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If income elasticity is positive,we could conclude that the product in question is an inferior good.

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What is the effect on total revenue if demand is elastic and price rises?


A) Total revenue will fall.
B) Total revenue will rise.
C) Quantity demanded will rise.
D) Supply will rise.

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Under which of the following situations will total revenue fall?


A) If elasticity is > 1 and price falls.
B) If elasticity is > 1 and price rises.
C) If elasticity is < 1 and price rises.
D) If elasticity is = 1 and price falls.

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Below is a graphical representation of the wheat market in the distant land of Nod. Below is a graphical representation of the wheat market in the distant land of Nod. -Refer to the graph above to answer this question.If supply was increased by 30 million bushels,what would be the new equilibrium price and quantity? A) $3 and 20 million bushels. B) $3 and 50 million bushels. C) $3 and 70 million bushels. D) $7 and 30 million bushels. E) $7 and 60 million bushels. -Refer to the graph above to answer this question.If supply was increased by 30 million bushels,what would be the new equilibrium price and quantity?


A) $3 and 20 million bushels.
B) $3 and 50 million bushels.
C) $3 and 70 million bushels.
D) $7 and 30 million bushels.
E) $7 and 60 million bushels.

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Suppose that the value of the price elasticity of demand for a product is 2 and its price increases by 16%.What will happen to the quantity demanded?


A) It will increase by 8%.
B) It will increase by 32%.
C) It will decrease by 8%.
D) It will decrease by 32%.
E) It cannot be determined without further information.

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The list below refers to the price elasticity of demand. 1) perfectly inelastic 2) perfectly elastic 3) unitary elasticity 4) elastic 5) inelastic -Refer to the information above to answer this question.What is a demand when the elasticity coefficient is greater than 1?


A) 1.
B) 2.
C) 3.
D) 4.
E) 5.

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-Refer to the information above to answer this question.Over what price range is demand inelastic? A) $14 to $16. B) $14 to $18. C) $16 to $18. D) $18 to $20. E) $18 to $22. -Refer to the information above to answer this question.Over what price range is demand inelastic?


A) $14 to $16.
B) $14 to $18.
C) $16 to $18.
D) $18 to $20.
E) $18 to $22.

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Below are two sets of prices and their related quantities demanded? Below are two sets of prices and their related quantities demanded? -Refer to Table 4.10 to answer this question.What is the price elasticity for the product represented by Set I? A) 0.002. B) 0.5. C) 2.3. D) 400. -Refer to Table 4.10 to answer this question.What is the price elasticity for the product represented by Set I?


A) 0.002.
B) 0.5.
C) 2.3.
D) 400.

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What is the elasticity of supply of seats for a one-night concert in an auditorium?


A) It is elastic.
B) It is inelastic.
C) It is perfectly inelastic.
D) It is perfectly elastic.

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Below are some data on price,income and demand for five different time periods. Below are some data on price,income and demand for five different time periods. -Refer to the information above to answer this question.What is the price elasticity of demand for product Y between years 2 and 3? A) 0.18. B) 0.24. C) 3.00. D) 4.09. E) Infinity. -Refer to the information above to answer this question.What is the price elasticity of demand for product Y between years 2 and 3?


A) 0.18.
B) 0.24.
C) 3.00.
D) 4.09.
E) Infinity.

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What do products such as movies,tomatoes and restaurant meals have in common?


A) They are all inferior goods.
B) They all are likely to have incomes elasticities less than one.
C) The demand for all three goods is price elastic.
D) The demand for all three goods is price inelastic.
E) They all have a small number of substitute goods.

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What is the main determinant of the price elasticity of supply?

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Time is the main determinant of supply e...

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Suppose the demand for Good X is unit elastic.If the price of Good X is $10 the quantity traded is 300.How many units will be traded if the price is $25? Explain.

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120 units.If Good X is unit elastic,a ch...

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