Multiple option questions.
You are watching: Refer to the table. over the $10-$8 price range, the elasticity coefficient of supply is:
1.The price elasticity of demand also is: a) the ratio of the percentage readjust in quantity demanded to the portion adjust in price. b) the responsiveness of revenue to a change in amount. c) the ratio of the readjust in amount demanded divided by the adjust in price. d) the response of revenue to a readjust in price.
2.If demand also is price elastic, then: a) a rise in price will raise full revenue. b) a loss in price will certainly raise total revenue. c) a loss in price will reduced the amount demanded. d) a rise in price will not have any kind of result on full profits.
3. Complementary products have: a) the same elasticities of demand also. b) extremely low price elasticities of demand. c) negative cross price elasticities of demand through respect to each various other. d) positive earnings elasticities of demand also.
4. The price elasticity of demand also mainly has a tendency to be: a) smaller sized in the lengthy run than in the short run. b) smaller sized in the short run than in the lengthy run. c) bigger in the brief run than in the long run. d) unconcerned the size of time.
5. If the price elasticity of supply of doodads is 0.60 and the price rises by 3 percent, then the amount gave of doodads will certainly rise by a) 0.60 percent. b) 0.20 percent c) 1.8 percent d) 18 percent.
6. Suppose we know that the price elasticity of demand of excellent X is equal to -1.2. Then, if its price will certainly rise by 5%, we have the right to predict through certainty that a) quantity demanded of that great will rise. b) the revenue of the firm producing that good will increase by 6%. c) the revenue of the firm developing that excellent will decrease by 6%. d) the amount demanded of that good will decrease by 6%. e) Namong the over.
7. A 10% increase in the price of movie ticket in Westridge 8 leads to a 15% decrease in the variety of tickets offered, indicating the demand for movie ticket in Westridge 8 is: a) elastic. b) inelastic. c) unit elastic. d) Can not tell from the information provided.
8. If the cross-price elasticity in between two assets is 1.5, a) the 2 items are deluxe products. b) the two products are complements. c) the two items are substitutes. d) the 2 products are normal items.
True/False/Unspecific. For each of the adhering to statements, say whether it is true, false, or uncertain and describe your answer.
1. It is reasonable to mean the cross price elasticity of demand for golf clubs and also golf balls to be positive.
Golf clubs and also golf balls are complementary items. This indicates that, as the price of golf clubs increases (a positive change), the consumption of golf balls decreases (a negative change). Cross price elasticity of demand also is equal to the proportion of these alters and will be negative. The statement is false.
2. If the demand is perfectly elastic, then a shift in the supply curve does not impact the equilibrium price.
|True, because a perfectly elastic demand also curve is horizontal. Thus, no matter what the change is the equilibrium price will certainly constantly remain the exact same. (See graph.)|
3. The demand curve for autos is even more elastic than the demand curve for Fords.
False. A Ford can be substituted by a various version. It is not as straightforward to find a substitute for a vehicle in basic. The even more substitutes a great has, the even more elastic is the demand for that great. Thus, demand for Fords is more elastic. 4. Suppose you own a "Here Comes the Sun" tanning salon and also the demand curve for your services is downward sloping. More, expect that a new tanning salon referred to as "Sunny Delight" opens up 2 blocks ameans from your salon. Tell whether the complying with three statements are true, false or unspecific and describe your answer.
a. The demand curve for your services shifts to the right. This brand-new salon is a substitute for your solutions. After it has showed up, your consumers have more choice, and some of them will start making use of the brand-new salon. So the demand also for your solutions will certainly decrease, or transition to the left. The statement is false.
b. The demand also for your solutions becomes even more elastic. One of the factors determining the price elasticity of demand also for the great is the number of substitutes. More substitutes - more elastic demand also. The statement is true.
c. The cross-price elasticity of the demand also for your solutions with respect to the price charged by "Sunny Delight" is negative. These two items (services) are substitutes. The cross-price elasticity of substitutes is positive, considering that as the price of among them rises, the demand also for (and therefore the usage of) the various other one boosts, also. The statement is false.
Quick Answer Inquiry. 5. At first Hans Johnkid was the only customer in the market for "Casa de Econ" beer, developed by a tiny regional brewery. When the price of "Casa de Econ" six-pack varies between $10 and also $20, the price elasticity of his individual demand also is equal to negative 1. Now imagine that Hans has actually been cloned 4 times, and also now we have 5 similar consumers in the industry for "Casa de Econ". What will take place to the price elasticity of sector demand in the price array given above? Will the demand also end up being more price elastic, less price elastic, or will certainly elasticity continue to be the same? Exordinary your answer.
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Due to the fact that elasticity faces relative alters, it doesn"t matter just how many kind of consumers we have in the industry as long as every one of them are same. (If the quantity demanded for each of them changes by 50%, that would certainly suppose the amount demanded in the entire market will readjust by 50%, also.) So the price elasticity of demand will continue to be the exact same.