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 ____.
Price | Quantity Demanded | Quantity Supplied |
$25 | 250 | 50 |
$50 | 200 | 100 |
$75 | 150 | 150 |
$100 | 100 | 200 |
$150 | 0 | 300 |
Question 1 options:
a) | consumers buying a greater quantity to help balance the marginal utility gained per last dollar spent on the good |
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b) | consumers buying a greater quantity due to the substitution effect |
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c) | consumers buying a greater quantity due to the income effect |
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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:
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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:
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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:
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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:
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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:
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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:
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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:
Solution: Using the information about the demand and the supply of the office