16. Demand is said to be elastic ifa. 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 bea. 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 youwant to increase your total revenue, you shoulda. increase the price of your jewellery boxes.b. decrease the price of your jewellery boxes.c. not change the price of your jewellery boxes.d. None of the above answers are correct.20. If a 6 percent increase in income results na 10 percent increase in the quantity demanded of pizza,then the income elasticity of demand for pizza isa. negative and therefore pizza is an normal good.b. negative and therefore pizza is a inferior good.c. positive and therefore pizza is an inferior good.d. positive and therefore pizza is a normal good.21. If the cross-price elasticity of two goods is negative, then those two goods area. substitutes.b. complements.c. normal goods.d. inferior goods.

Elasticity of demand is the responsiveness of the change in quantity demand to the change in…

16. 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.

16. 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.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

14. If the price elasticity of demand is 0.6, then a 10 percent increase in the price of the good will lead to a _ in the quantity demanded. a. 6 percent increase b. 6 percent decrease c. 0.6 percent increase d. 0.6 percent decrease
The price elasticity of demand depends on a. the units used to measure quantity but not the units used to measure price. b. neither the units used to measure price nor the units used to measure quantity. c. the units used to measure price and the units used to measure quantity. d. the units used to measure price but not the units used to measure quantity. Clear my choice
3. Suppose that as the income level increases by 10% that the quantity demanded of that same item increases by 6%. a. Calculate the income elasticity of demand. b. What two things does the value in a tell you about the good in question?
23. Price elasticity of demand for snowshoes has recently fallen from 3.2 to 1.8. Which of the following best explains this change? a. The price of snowshoes rose. b. Consumer incomes increased.y A number of new alternatives for snowshoes recently entered the market. d. The cost of producing snowshoes has increased. C.
Consider the supply of coal. What would make the supply of coal more elastic? The supply of coal would become more elastic if A. The time horizon becomes longer. B. It becomes a larger portion of a consumer's budget C. more substitutes were available. D. it were more of a luxury.
a. Explain what “cross-elasticity of demand” is. b. What is a “substitute good”? Give an example. Does it have a positive or negative cross-elasticity of demand?
The demand for necessities ___a. is more elastic than the demand for luxuries.b. is less elastic than the demand for luxuries.c. All of the above.d. have the same elasticity demand with luxuries.
A subway ride is than a car because a. more price elastic: it is a smaller part of one's income. b. less price elastic; it is a smaller part of one's income. c. less price elastic; people will have a shorter time to adjust to the change in its price. d. more price elastic: people will have a longer time to adjust to the change in its price.
1. The price of a good rises from $6 to $8. Thus, the quantity demanded of that good falls from 150 to 75 units. Using the point-slope formula, calculate the Price Elasticity of Demand. Note: You’ll use this answer to help you with Question 2 & 3 (coming up next). A. -1.50 B. -0.66 C. -2 D. -0.04 E. -25 F. -1 2. Given your response in Question 1, classify the coefficient of the Price Elasticity of Demand. A. Elastic B. Inelastic C. Perfectly Elastic D. Perfectly Inelastic E. Unit Elastic 3. Which of the following statements is the best interpretation of the coefficient of the Price Elasticity of Demand in Question 1? A. There will be a 0.66 percent decrease in the Quantity Demanded. B. A 1 percent increase in the Price of a good corresponds to a 0.66 percent decrease in the Quantity Demanded for that good. C. A 1 percent increase in the Price of a good corresponds to a 1.55 percent increase in the Quantity Demanded for that good. D. Given the Price…