Using the information about the demand and the supply of the office

Question # 00542881 Posted By: dr.tony Updated on: 06/09/2017 02:30 AM Due on: 06/09/2017
Subject Economics Topic Microeconomics Tutorials:
Question
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Using the information about the demand and the supply of the office chairs given in the table below, the quantity demanded rises as the price decreases, more likely because ____.

PriceQuantity DemandedQuantity Supplied
$2525050
$50200100
$75150150
$100100200
$1500300
Question 1 options:
a)

consumers buying a greater quantity to help balance the marginal utility gained per last dollar spent on the good

b)

consumers buying a greater quantity due to the substitution effect

c)

consumers buying a greater quantity due to the income effect

d)

all of the above


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Question 2 (5 points)


Since peanut butter and jelly are often consumed together, the cross elasticity of demand for peanut butter or jelly will more likely show _____.

Question 2 options:
a)

a negative value

b)

a positive value


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Question 3 (5 points)


Market price rising occurs together with lower quantity sold for apple cider. Considering that apple tree blossoms have suffered early Spring frost, which of the following best theorizes what occurs in the market of apple cider?

Question 3 options:
a)

a rise in demand

b)

a rise in supply

c)

a fall in demand

d)

a fall in supply


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Question 4 (5 points)


When government imposes price floor below the equilibrium price, the market equilibrium price will

Question 4 options:
a)

remain unchanged

b)

rise

c)

double

d)

fall


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Question 5 (5 points)


All insulin-dependent diabetics must have insulin or they could die. This means that the ___ curve for insulin will be__.

Question 5 options:
a)

supply, horizontal

b)

demand, vertical

c)

demand, horizontal

d)

supply, vertical


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Question 6 (5 points)


Rent ceiling imposed in the City of New York, if binding, pushes rent to go ____ the equilibrium rent. An unintended consequence of imposing a rent ceiling is that it creates ____.

Question 6 options:
a)

above, shortage

b)

above, surplus

c)

below, surplus

d)

below, shortage


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Question 7 (5 points)


When the price is raised from $7 to $9, the change in the price is ___, and the percentage change in the price is ___, using the mid-point formula.

Question 7 options:
a)

$2, 0%

b)

$2, 25%

c)

$2, 50%

d)

$2, 100%


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Question 8 (5 points)


Which of the formula given below is used for computing price elasticity of demand?

Question 8 options:

the percentage change in quantity demanded

the percentage change in price

the change in quantity demanded divided by the change in price

the percentage change in quantity demanded divided by the percentage change in price


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Question 9 (5 points)


Given that the price elasticity of demand equals 2, the total revenue will ___ as a result of a slightly raised price.

Question 9 options:

fall

remain unchanged

rise

none of the above


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Question 10 (5 points)


A Detroit Lions' fan decides to attend all Detroit Lions' games regardless the amount of the ticket price. For this fan, the price elasticity of demand is

Question 10 options:

0

1

5

10

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Tutorials for this Question
  1. Tutorial # 00540048 Posted By: dr.tony Posted on: 06/09/2017 02:30 AM
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