According to the graph, if price increases from $10 to $15, total revenue will Price $20 15 10 O123 4 5 6 7.8 9 10 Quantity Select one: a. decrease by $20, so demand must be elastic. O b. increase by $20, so demand must be inelastic. c. decrease by $10, so demand must be elastic. d. increase by $5, so demand must be inelastic.
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- According to the graph, if price increases from $10 to $15, total revenue will Price $20 15 10 O 1 2 3 4 5 7 8 9 10 Quantit Select one: a. decrease by $10, so demand must be elastic. O b. increase by $20, so demand must be inelastic. c. increase by $5, so demand must be inelastic. d. decrease by $20, so demand must be elastic.What is the sum of all individual demand curves for a product? Select one: summation demand cross out O b. market demand cross out Oc consumption demand cross out O d. total demand cross outLooking at the relationship between elasticity and total revenue, we can see that Select one: O a. b and c b. when demand is unit elastic, small price changes don't change total revenue C. when a good is price inelastic, revenue increases when prices increase O d. when a good is price elastic, revenue increases when prices increase O e. total revenue is maximized when the elasticity has stopped changing
- The following graph shows the demand for a good. PRICE (Dollars per unit) 70 ++ 35 25 10 0 OO +-+- 1 14 Region Between W and X 6 Between X and Y Between Y and Z O True O False For each of the regions listed in the following table, use the midpoint method to identify if the demand for this good is elastic, (approximately) unit elastic, or inelastic. I EL 15 21 Elastic O O QUANTITY (Units) W Inelastic Unit Elastic O O O Demand O True or False: The slope of the demand curve is equal to the value of the price elasticity of demand. (?)Assume that demand for a service depends upon price and income, where the price elasticity of demand is Ep o=-0.6 and the income elasticity of demand is E1, q=1.2. If price falls by 49 and income rises by 296, the quantity demanded of the service will O A. increase by 69 O B. increase by 4.896 O C. decrease by 9.6% O D. decrease by 2.49Question 2 Given demand function Q= 50 -0 4P, what is the pnce elasticity of demand at price P = 25? O 025 O 04 O 32 AMoving to another question will save this response. SAMSun
- While analyzing the semiconductor industry you notice that when the price of ultrapure water rises 2%, the demand for chip grade silicon declines 8%. From this data what appears to be true? O A Chip grade silicon is a substitute to Ultrapure water with a cross-price elasticity of +4. O B. Chip grade silicon is a complement to Ultrapure water with a cross-price elasticity of +0.25 O C. Chip grade silicon is a complement to Ultrapure water with a cross-price elasticity of-4. O D. Chip grade silicon is a substitute to Ultrapure water with a cross-price elasticity of -0.25The relationship between a consumer's monthly income and monthly consumption of four products, A-D, is shown below. Income $4,000 5,000 Quantity Consumed B A с D 45 90 20 0 60 180 10 15 How much is the income elasticity of product A? Select one: O a. 0.22 (normal good) O b. 1.29 (normal and superior good) O c. 9 (superior good) O d. 3 (superior good) O e. -3 (inferior good)Anna sold 20 chairs at a price of $50 per chair. When it lowered its price to $45, the quantity sold increased to 25 chairs. Calculate the absolute value of the price elasticity of demand. Use the midpoint formula. Select one: O a. -2.11 O b. 2 O c. 2.11 O d. -2 If a 4 percent rise in the price of honey lowers the total revenue received by the producers of honey by 4 percent, the demand for honey is: Select one: O a. has an elasticity of 2.0 O b. O c. O d. elastic is unit elastic inelastic
- The income elasticity of demand for a perfume is 0.5 Which of the following is the correct interpretation O a. A 1 percent increase in income will result in 2 percent rise in its demand O b. A2 percent increase in income will result in 1 percent fall in its demand C. A 50 percent increase in income will result in 1 percent rise in its demand O d. A 2 percent increase in income will result in 1 percent rise in its demandCalculate your price elasticity of demand as the price of motor vehiclesincreases from $920 to $1300 when income is $15,000. Is the good elasticor inelastic? ii. Calculate your income elasticity of demand as your income increasesfrom $15,000 to $24,000 if the price moves from $640 to $1,120. What doesthe value tell you about the good?The price elasticity of gasoline supply in the U.S. is 0.6. If the price of gasoline rises by 10%, what is the expected change in the quantity of gasoline supplied in the U.S.? O a 2.0% O b. -3.5% OC. 6.0% O d. 3.5% e. 6.0%