Demand is said to be inelastic if a. buyers respond substantially to changes in the price of the good. b. demand shifts only slightly when the price of the good changes. c. the quantity demanded changes only slightly when the price of the good changes. d. the price of the good responds only slightly to changes in demand.
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Demand is said to be inelastic if
a. buyers respond substantially to changes in the price of the good.
b. demand shifts only slightly when the price of the good changes.
c. the quantity demanded changes only slightly when the price of the good
changes.
d. the price of the good responds only slightly to changes in demand.
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- A 2 percent increase in the price of milk causes a 4 percent reduction in the quantity demanded of chocolate syrup. 1. How should this condition be interpreted? * a. The demand for chocolate syrup is cross-price inelastic, consumers react weakly to the change in the price of milk. b. The demand for chocolate syrup is cross-price elastic, consumers react strongly to the change in the price of milk. c. The demand for chocolate syrup is cross-price elastic, consumers react weakly to the change in the price of milk. d. The demand for chocolate syrup is cross-price inelastic, consumers react strongly to the change in the price of milk. 2. The consumers who purchase milk consider the demand chocolate syrup as * a. a normal good b. an inferior good c. a substitute good d. a complementaryWhen there is an increase in demand,A. the demand curve shifts to the right of the original demand curve.B. the demand curve rotates clockwise.C. the demand curve shifts to the left of the original demand curve.D. the demand curve rotates counterclockwise.E. a lower price has increased the amount of the good that consumers will buy.Demand is said to be inelastic if Select one: a. buyers respond substantially to changes in the price of the good. b. demand shifts only slightly when the price of the good changes. c. the quantity demanded changes only slightly when the price of the good changes. d. the price of the good responds only slightly to changes in demand.
- A change in demand is said to take place when there is aA Shift of the demand curve.B Shift of the supply curve.C Movement along the demand curve.D Quantity change.E Price change.Assume that imitation gemstones (an inferior good) are a low-cost alternative to diamonds (a normal good). What happens when average incomes increase? A. The demand for diamonds increases, and the demand for imitation gemstones decreases. B. The demand for diamonds decreases, and the demand for imitation gemstones increases. C. The demand for both diamonds and imitation gemstones increases. D. The demand for both diamonds and imitation gemstones decreases.Equilibrium is achieved when quantity demanded intersect with quantity supplied. Assume aproduct “Mobile Phone” for which supply and demand shifts. You are required to prepare graphs of each situation given below?a. Increase in income: Mobile Phone is a normal good.b. Increase in income: Mobile Phone is an inferior good.c. Decrease in the price of a substitute for Mobile Phone.d. Decrease in the price of a complement for Mobile Phone.e. Increase in the cost of production of Mobile Phone.f. Decrease in the cost of production of Mobile Phone.
- If good B is a substitute for good A and the price of good B increases, a. the demand for good A will increase. b. the price of good A will decrease. c. the quantity demanded of good B will increase. d. the quantity demanded of good A will decrease.As the price of gasoline increases the quantity demanded of gasolineAssume that good Z is an inferior good for a consumer. If the consumer's income increases, thenA. the supply of good Z will increase.B. the supply of good Z will decrease.C. the demand of good Z will increase.D. the demand of good Z will decrease.
- B) When the price of Good A is $27, the quantity demanded of Good B is 1,200 units. When the price of Good A falls to $23 the quantity demanded of Good B falls to 800 units. i. Calculate the cross elasticity of demand ii. Are the goods substitutes or complements? Explain your choice. iii. Explain how cross elasticity of demand is used. vi. Explain how income elasticity of demand is used.A movement along a demand curve caused by changes in the price of a good is known as: A. Change in Demand B. Shift in Demand C. Law of DemandIf an increase in the supply of good A increases the demand for good B, then A. A and B are substitutes. B. the elasticity of supply for good A is greater than 1. C. A and B are complements. D. the demand for A is price elastic. E. the cross elasticity of supply for good B with respect to the price of good A is positive.