Which of the following is true? O A. The elasticity of demand varies only along downward-sloping linear demand curves. O B. The elasticity of demand is constant along most demand curves. OC. The elasticity of demand varies along most demand curves. O D. None of the above. Which of the following is true? O A. When ɛ < -1, demand is considered inelastic. O B. When E = -1, demand is considered unitary elastic. C. When -1<850, demand is considered elastic. D. All of the above. O E. None of the above.
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- When quantity demanded is completely unresponsive to price, what is the value of price elasticity of demand? O A. 1 O B. Anumber between 0 and 1 OC. 0 O D. Anegative number If demand is perfectly elastic, then what is the effect of an increase in price? O A. no change in quantity demanded O B. a decrease in quantity demanded to zero O C. a very small change in quantity demanded O D. a change in quantity demanded exactly equal to the change in priceRegarding the concept of price-elasticity, which statement is incorrect? O a. A linear demand has constant slope, but variable price-elasticity. O b. In terms of price-elasticity, a linear demand or supply with zero slope is perfectly elastic. O c. Price-elasticities are often lower in the short run than in the long run. O d. If supply is price-inelastic, shifts in demand will have a larger effect on the equilibrium quantity than on the equilibrium price. O e. When demand is price-inelastic, decreases in P offset increases in Q, meaning less revenue (PQ) for producers.the Price elasticity of demand is calculated as: Select one: O a. %AP/%AQD O b. %AQs/%AQD O c. %AQ/%AQs O d. %AQ/%AP If the price elasticity of demand has a value of -1.3, this means: Select one: O a. A 1 percent increase in the price of the good causes quantity demanded to decrease by 1.3 percent. O b. A 1 percent increase in the price of the good causes quantity demanded to increase by 1.3 percent. O c. A 1.3 percent increase in the price of the good causes quantity demanded to decrease by 1 percent. O d. A$1 increase in price causes quantity demanded to fall by 1.3 units.
- According to the table, using the midpoint method, what is the elasticity of supply from point A to point B? Price Quantity $2.25 125 B $2.45 145 Select one: O a. unit elastic and equal to 1 Ob. inelastic and equal to 0.57. O c. elastic and equal to 1.74 O d. elastic and equal to 2.1Using the demand equation below, what can you conclude about the price elasticity of demand for the good or service represented by the equation? Demand: P = 100 - 4Q O a. Demand is price elastic. O b. The price elasticity of demand varies along the demand curve. O c. Demand is price inelastic. O d. Demand is unitary elastic with respect to price. 4Assume that the price of commodity Y rises by 13.5% and the cross price elasticity of demand with commodity X is 1.35. According to this situation, commodity X is O a. not related to commodity Y as the exact price of commodity Y has not been specified b. a complementary product as cross price elasticity of demand is positive O c. a substitute as cross price elasticity of demand is negative d.a substitute as cross price elasticity of demand is positive
- Which one of the following events will make the elasticity of supply for Product A relatively more elastic. O A. Firms supplying Product A currently have a significant amount of spare (excess) capacity. O B. It is very difficult for firms to switch resources from producing other products to producing more of Product A. O C. The production of Product A requires very specialized resources and processes that cannot be used to produce other product O D. Firms must incur a significant amount of additional costs in order to supply more units of Product A.QUESTION 2 Assume the demand function is: Q = 100-2P What is the price elasticity of demand over the $30 to $40 range of the demand curve (please use the midpoint formula and insert your solu QUESTION 3 True or False. The solution to Question 2 is considered elastic. O True False QUESTION 4 Assume the demand function is: Q = 100-2P What is the price elasticity of demand over the $10 to $20 range of the demand curve (please use the midpoint formula and insert your solu QUESTION 5 True or False. The solution to Question 4 is considered elastic. O True O False Click Save and Submit to save and submit. Click Save All Answers to save all answers.Product A is an inferior good with no close substitutes. It is also a complement to product B. Which describes product A? OA income elasticity of demand: positive; cross elasticity of demand with respect to product B: positive O B. income elasticity of demand: positive; cross elasticity of demand with respect to product B: negative OCincome elasticity of demand: negative; cross elasticity of demand with respect to product B: positive O D.income elasticity of demand: negative; cross elasticity of demand with respect to product B: negative
- QUESTION 1 When production of a good can be expanded without significantly increasing the overall demand for its inputs: O a.supply for this good will tend to be more inelastic. O b.supply for this good will tend to be more elastic. O c. price for the good will be constant. O d. the elasticity of supply of the product will equal the elasticity of supply of the inputs.Which of the following statements regarding price elasticity is incorrect? O A. When demand is price elastic, higher prices reduce demand. B. A product with a perfectly inelastic demand would have the same demand even as prices change. OC. A product with a perfectly inelastic demand would see demand change as prices change. O D. When demand is price elastic, lower prices stimulate demand.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%