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- If supply is elastic, will shifts in demand have a larger effect on equilibrium quantity or on price?If demand is inelastic, will shifts in supply have a larger effect on equilibrium price or on quantity?1. An example of a market where supply and demand are both inelastic. 2. An example of a market where both supply and demand are both elastic. 3. An example of a market where supply is inelastic and demand is elastic. 4. An example of a market where supply is elastic and deman is inelastic.
- If the price of home computers rises and people still buy more of them, then a. the law of demand does not hold. b. this could have been caused by a change in the none price determinants of demand. c. demand has decreased. d. the demand for home computers is elastic. e. the demand for home computers is inelastic.SOLCE FOR D-E ONLYThe Demand curve for a good A is P = - 2Q+200 and the Supply curve is P=Q+10.A. Find the equilibrium Price and Quantity B. What is the level of total expenditure in this market?C. What is the price elasticity of demand at equilibrium? D. If there is a law that prevents you from consuming this good, how much should you be compensated by the government to accept it given the Consumer Surplus (CS)? Calculate.Demand shifts to P = - 2Q+260 due to an increase in the price of another good B from $20 to $25 E. Find the New Equilibrium, and Calculate the new Consumer Surplus and the Cross Price Elasticity of Demand. What type of goods are these?What happens in the market for video games if the demand for video games increases by more than the supply of video games decreases? The equilibrium price will ________ and the equilibrium quantity will ________. A. rise; increase B. fall; increase C. not change; increase D. rise; decrease
- 1. A 10 percent increase in the quantity of spinach demanded results from a 20 percent decline in its price. The price elasticity of demand for spinach is____. Select one: a. 5.00. b. 2.0. c. 10.0. d. 0.5. 2. If a rise in the price of good B increases the quantity demanded of good A, Select one: a. B is a substitute for A, but A is a complement to b. A is a substitute for B, but B is a complement to c. A and B are substitutes. d. A and B are complements. 3. Price (randss per peck) Quantity demanded (pecks) 8 2,000 7 4,000 6 6,000 5 8,000 4 10,000 3 12,000 The table above gives the demand schedule for carrots. The price elasticity of demand between R6.00 and R7.00 per peck is__________. Select one: a. 1.0. b. 2.0. c. 2.6 d. 5.0 4. Deb’s income has just risen from R950 per week to R1,050 per week. As a result, she decides to increase the number of movies she attends each month by 5 percent. Her demand for movies is Select one:…1. A 10 percent increase in the quantity of spinach demanded results from a 20 percent decline in its price. The price elasticity of demand for spinach is____. Select one: a. 5.00. b. 2.0. c. 10.0. d. 0.5. 2. If a rise in the price of good B increases the quantity demanded of good A, Select one: a. B is a substitute for A, but A is a complement to b. A is a substitute for B, but B is a complement to c. A and B are substitutes. d. A and B are complements. 3. Price (randss per peck) Quantity demanded (pecks) 8 2,000 7 4,000 6 6,000 5 8,000 4 10,000 3 12,000 The table above gives the demand schedule for carrots. The price elasticity of demand between R6.00 and R7.00 per peck is__________. Select one: a. 1.0. b. 2.0. c. 2.6 d. 5.0 4. Deb’s income has just risen from R950 per week to R1,050 per week. As a result, she decides to increase the number of movies she attends each month by 5 percent. Her demand for movies is Select one:…Skii resorts have an inelastic supply, and motorcycles have an clastic supply. Suppose that a rise in population doubles the demand toboth products (that is, the quantity demanded at each price is twice what it was) a.What happens to the equilibrium price and quantity in each market?b. Which product experiences a larger change in price?c. Which product experiences a larger change in quantity?d. What happens to total consumer spending on cach product?
- A decrease in demand will cause a decrease in the equilibrium quantity and the equilibrium price. a. True b. False16. Demand is said to be elastic if a. the price of the good responds substantially to changes in demand. b. demand shifts substantially when the price of the good changes. c. buyers do not respond much to changes in the price of the good. d. the quantity demanded responds substantially to changes in the price of the good. 17. If a good is a necessity, demand for the good would tend to be a. elastic. b. horizontal. c. unit elastic. d. inelastic. 18. In the case of perfectly inelastic demand, a. quantity demanded stays the same regardless of price changes. b. huge changes in quantity demanded result from very small changes in the price. c. the change in quantity demanded exactly equals the change in price. d. the change in quantity demanded will be twice the change in price. 19. Suppose that you produce jewellery boxes. If the demand for jewellery boxes is elastic and you want to increase your total revenue, you should a. increase the price of your jewellery boxes. b. decrease the price…Use the linear demand curve shown below to answer the following questions. a. The point elasticity of demand at a price of $500 is _________. b. The point elasticity of demand at a price of $175 is _________. c. Demand is unitary elastic at a price of $_________. d. As price falls, |E| __________________ (gets larger, gets smaller, stays the same) for a linear demand curve.