Question 15.15 Two months ago, the Marbury Shirt company sold 200 shirts at $30 per shirt.  Last month, the company raised its price to $35 per shirt and sold 300 shirts.  Evidently the company experienced a(n)         decrease in demand.        increase in demand.        decrease in supply.        increase in supply.

Exhibit: The Demand for Bungalow Bob's Bagels Price Quantity per period 30 Demand is price elastic between: $0.30 and $0.40. $0.80 $0.70 $0.60 $0.50 40 50 60 $0.40 and $0.50. $0.50 and $0.60. $0.60 and $0.70. $0.40 70 $0.30 80

Question 18.18.   You are the sales manager for a software company and have been informed that the price elasticity of demand for your most popular software is less than 1.  To increase total revenues, you should:         increase the price of the software.        decrease the price of the software.        hold the price of the software constant.        increase the supply of the software. Question 19.19.   A state government wants to increase the taxes on cigarettes to increase tax revenue.  This tax would only be effective in raising new tax revenues if the price elasticity of demand is  unity.        elastic.        inelastic.        perfectly elastic. Question 20.20.   Movie theaters charge lower prices to see a movie in the afternoon than in the evening because there is an  inelastic supply of movies in the evening.        elastic demand to see movies in the evening.        elastic demand to see movies in the afternoon.        inelastic demand to see movies in the afternoon.

Explain how each of the factors would or would not affect the price elasticity of demand for a good or service that your company (or a company for which you have an interest) produces?Help your classmates expand or re-focus on what they have observed.

Which of the following is least likely to increase the demand for new tires? a decrease in the price of tires a decrease in the price of cars an increase in consumer income an increase in the number of miles people drive per year

#8 What happens to total revenue (TR) if the price rises on a product with demand that is price elastic?     Total revenue will remain the same.   Total revenue will fall.   Total revenue will rise.

Price Elasticity of Supply Inelastic Supply Quantity Supplied Price Elastic Supply Quantity Supplied S Given the graphs above, which of the following is likely true? Over the short run, the elasticity of quantity supplied by firms tends to be like both graphs. Over the short run, the elasticity of quantity supplied by firms tends to be more like the graph on the left. Over the short run, the elasticity of quantity supplied by firms tends to be more like the graph on the right. Over the long run, the elasticity of quantity supplied by firms tends to be more like the graph on the left.

_6. A product's price changes from $2 to $6 and its quantity demanded changes from 10 to 4 units. This is an example of price: A) B) C) D) inelastic demand. elastic demand. unitarily elastic demand. inelastic supply. Show your work here Formula Calculation Answer

Consider the supplier of a product that is an inferior good. For instance, an aluminum supplier for a canned goods producer. During a recession during which average incomes fall, which of the following best describes what would happen to the profit-maximizing price of the supplier? a. The supplier’s profit-maximizing price would decrease due to an increase in demand. b. The supplier’s profit-maximizing price would increase due to an increase in demand. c. The supplier’s profit-maximizing price would decrease due to a reduction in demand. d. The supplier’s profit-maximizing price would increase due to a reduction in demand.

Question 4 (A) Explain the factors that affect the price elasticity of demand for a product.