devry econ 312 week 2 quiz

(TCO 2) Economists use the term "demand" to refer to

a particular price-quantity combination on a stable demand curve.

the total amount spent on a particular commodity over a stipulated time period.

an upsloping line on a graph that relates consumer purchases and product price.

a schedule of various combinations of market prices and quantities-demanded.

: 1 of 1

Comments:

Question 2. Question :

(TCO 2) Which of the following would not shift the demand curve for beef?

A widely publicized study that indicates beef increases one's cholesterol

A reduction in the price of cattle feed

An effective advertising campaign by pork producers

A change in the incomes of beef consumers

Question 3. Question :

(TCO 2) Which of the following is most likely to be an inferior good?

Fur coats

Ocean cruises

Used clothing

Steak

Instructor Explanation: Chapter 3.

Points Received: 1 of 1

Comments:

Question 4. Question :

(TCO 2) Which of the following would mostly likely increase the demand for gasoline?

The expectation by consumers that gasoline prices will be higher in the future

The expectation by consumers that gasoline prices will be lower in the future

A widespread shift in car ownership from SUVs to hybrid sedans

A decrease in the price of public transportation

Question 5. Question :

(TCO 2) The supply curve shows the relationship between

price and quantity supplied.

production costs and the amount demanded.

total business revenues and quantity supplied.

physical inputs of resources and the resulting units of output.

Question 6. Question :

(TCO 2) The price elasticity of demand is generally

negative, but the minus sign is ignored.

positive, but the plus sign is ignored.

positive for normal goods and negative for inferior goods.

positive because price and quantity demanded are inversely related.

Question 7. Question :

(TCO 2) Suppose the price* of local cable TV service increased from $16.20 to $19.80, and as a result, the number of cable subscribers decreased from 224,000 to 176,000. Use the Midpoint formula to find the answer. Along this portion of the demand curve, price elasticity of demand is

0.8

1.2

1.6

8.0

Question 8. Question :

(TCO 2) A firm can sell as much as it wants at a constant price. Demand is thus

perfectly inelastic.

perfectly elastic.

relatively inelastic.

relatively elastic.

Question 9. Question :

(TCO 2) The demand schedules for such products as eggs, bread, and electricity tend to be

perfectly price elastic.

of unit price elasticity.

relatively price inelastic.

relatively price elastic.

Question 10. Question :

(TCO 2) The demand for autos is likely to be

less price elastic than the demand for Honda Accords.

more price elastic than the demand for Honda Accords.

of the same price elasticity as the demand for Honda Accords.

perfectly inelastic.

Question 11. Question :

(TCO 2) What is the Law of Supply? Why does the supply curve slope upwards?

Question 12. Question :

(TCO 2) Suppose the price of widgets falls from $7 to $5 and consumption of widgets rises from 15 widgets a month to 25 widgets. Calculate your price elasticity of demand of widgets. What can you say about your price elasticity of demand of widgets? Is it Elastic, Inelastic, or Unitary Elastic? Why? Use the Midpoint formula and please show your work.