Pennsylvania ECON 102 - What is the absolute value of

For the next 6 questions, use the graph above. USING THE MIDPOINT METHOD, what is the absolute value of the price elasticity of demand between P=100 and P=80?

0.3333

0.5

0.75

1

1.5

2

2.5

3

3.5

Flag this Question Question 22 pts The value found in the above question is considered to be:

elastic

unit elastic

inelastic

Flag this Question Question 32 pts Suppose that at this point, producers raised the price by 5%. What would happen to quantity demanded as a result?

it would rise by 5%

it would fall by 5%

it would rise by more than 5%

it would fall by more than 5%

it would rise by less than 5%

it would fall by less than 5%

Flag this Question Question 42 pts USING THE MIDPOINT METHOD, what is the absolute value of the price elasticity of demand between P=40 and P=20?

0.3333

0.5

0.75

1

1.5

2

2.5

3

3.5

Flag this Question Question 52 pts The value found in the above question is considered to be:

elastic

unit elastic

inelastic

Flag this Question Question 62 pts Suppose that at this point, producers raised the price by 5%. What would happen to quantity demanded as a result?

it would rise by 5%

it would fall by 5%

it would rise by more than 5%

it would fall by more than 5%

it would rise by less than 5%

it would fall by less than 5%

Flag this Question Question 72 pts

The following graph below represents a linear demand function.

Use the graph to answer the following questions. Elasticity values are greater than 1 (in absolute value) in the portion of the graph described by letter _____.

a

b

c

Flag this Question Question 82 pts Elasticity values are less than 1 (in absolute value) in the portion of the graph described by letter _____.

a

b

c

Flag this Question Question 92 pts Elasticity values are exactly equal to 1 in absolute value in the portion of the graph described by letter _____.

a

b

c

Flag this Question Question 102 pts The inelastic portion of the graph is the area described by letter _____.

a

b

c

Flag this Question Question 112 pts The unit elastic portion of the graph is the area described by letter _____.

a

b

c

Flag this Question Question 122 pts The elastic portion of the graph is the area described by letter _____.

a

b

c

Flag this Question Question 132 pts Total revenue is maximized over the portion of the graph described by letter ______.

a

b

c

Flag this Question Question 142 pts Suppose we are somewhere in portion “c” on the graph and the firm raises the price of the good by a small amount. What happens to total revenue?

Total revenue will increase

Total revenue will decrease

Total revenue will stay the same

Flag this Question Question 152 pts Suppose we are somewhere in portion “a” on the graph and the firm raises the price of the good by a small amount. What happens to total revenue?

Total revenue will increase

Total revenue will decrease

Total revenue will stay the same

Flag this Question Question 162 pts Suppose that the firm lowered prices by 2%, and in response, consumers purchased 6% more of the good. We know that we are somewhere on the portion labeled by letter _________.

a

b

c

not enough information to answer

Flag this Question Question 174 pts

For the next 5 questions, consider the following market for Blu-Ray players.

Demand: Qd = 400 – 3P

Supply: Qs = –100 + 2P

Given these equations, what are the equilibrium price and quantity?

Equilibrium price is

Equilibrium quantity is

Flag this Question Question 184 pts

Suppose the actual market price of Blu-Ray players is $92. What is the quantity demanded and quantity supplied at this price?

Quantity demanded is

Quantity supplied is

Flag this Question Question 194 pts At this price of $92, will there be a shortage or a surplus of Blu-Ray players?

Shortage

Surplus

Flag this Question Question 204 pts

What is the amount of this shortage or surplus?

The shortage or surplus is Blu-Ray players.

Flag this Question Question 214 pts Over time, do you expect the price of Blu-Ray players to rise or fall?

expect the price to rise

expect the price to fall

Flag this Question Question 224 pts

For the next 5 questions, consider the following market for digital cameras.

Demand: Qd = 500 – 2P

Supply: Qs = –80 + 3P

Given these equations, what are the equilibrium price and quantity?

Equilibrium price is

Equilibrium quantity is

Flag this Question Question 234 pts

Suppose the actual market price of digital cameras is $128. What is the quantity demanded and quantity supplied at this price?

Quantity demanded is

Quantity supplied is

Flag this Question Question 244 pts At this price of $128, will there be a shortage or a surplus of digital cameras?

Shortage

Surplus

Flag this Question Question 254 pts

What is the amount of this shortage or surplus?

The shortage or surplus is digital cameras.

Flag this Question Question 264 pts Over time, do you expect the price of digital cameras to rise or fall?

expect the price to rise

expect the price to fall

Flag this Question Question 274 pts Suppose guitars and guitar strings are complements in consumption. What will happen in the market for guitars if the price of guitar strings decreases?

There will be an increase in quantity demanded for guitars

There will be a decrease in quantity demanded for guitars

There will be an increase in demand for guitars

There will be a decrease in demand for guitars

Flag this Question Question 284 pts Based on your answer, what will happen to the equilibrium price of guitars?

increase

decrease

remain the same

could do any of the above

Flag this Question Question 294 pts What will happen to the equilibrium quantity of guitars?

increase

decrease

remain the same

could do any of the above

Flag this Question Question 304 pts Consider another good, bread. Which of the following would cause a leftward shift in the demand for bread?

an increase in the production costs involved in making bread

a decrease in consumer income, assuming that bread is a normal good

an increase in consumer income, assuming that bread is a normal good

a decrease in the price of jelly, which is a complement to bread

Flag this Question Question 313 pts

Watch the following video (made by Dave Brown from Penn State Economics). Link here: https://www.youtube.com/watch?v=P9jj_rIVbeg (Links to an external site.).

The video details the complexities that can arise if there are simultaneous shifts in demand and supply. Based on the analysis done in the video, what is the net effect on equilibrium price if there is a simultaneous increase in demand and an increase in supply?

Equilibrium price will always go up

Equilibrium price will always go down

Equilibrium price could go up or down

Flag this Question Question 323 pts Based on the analysis done in the video, what is the net effect on equilibrium quantity if there is a simultaneous increase in demand and an increase in supply?

Equilibrium quantity will always increase

Equilibrium quantity will always decrease

Equilibrium quantity could increase or decrease

Flag this Question Question 333 pts Using the same analysis done in the video, draw for yourself the situation of a simultaneous decrease in demand and increase in supply. Based on your graphs, what is the net effect on equilibrium price?

Equilibrium price will always go up

Equilibrium price will always go down

Equilibrium price could go up or down

Flag this Question Question 343 pts Using the same analysis done in the video, draw for yourself the situation of a simultaneous decrease in demand and increase in supply. Based on your graphs, what is the net effect on equilibrium quantity?

Equilibrium quantity will always increase

Equilibrium quantity will always decrease

Equilibrium quantity could increase or decrease