Row 1
If the demand for golf is unit-price elastic and your local public golf course increases the greens fees for using the course, you would expect:
a. a decrease in total revenue received by the course.
b. an increase in total revenue received by the course.
c. a decrease in the amount of golf played on the course.
d. no change in the amount of golf played on the course.
e. both an increase in total revenue received by the course and an increase in the amount of golf played at the course.
c. a decrease in the amount of golf played on the course.
Between:
Insulin, Designer Clothing, Luxury Cars, Gasoline, and Restaurant Meals
Rank these goods from price elastic to price inelastic
Elastic - Inelastic
Cars, clothing, food, gas, insulin
The price of gizmos has risen by 2.5%. If the price elasticity of demand is equal to 4, we would expect to see
a. the quantity of gizmos demanded to rise by 10%.
b. the quantity of gizmos demanded to fall by 2.5%.
c. the quantity of gizmos demanded to rise by 100%.
d. the quantity of gizmos demanded to fall by 1%.
e. the quantity of gizmos demanded to fall by 10%.
e. the quantity of gizmos demanded to fall by 10%.
A shirt manufacturer sold 10 dozen shirts per day when the price was $4 per shirt and sold 10 dozen shirts per day when the price was $3 per shirt. The absolute value of the price elasticity of demand, is:
a. greater than zero but less than 1.
b. equal to 1.
c. greater than 1 but less than 3.
d. greater than 3.
e. equal to zero.
e. equal to zero.
After graduation from college, you will receive a substantial increase in your income from a new job. If you decide that you will purchase more T-bone steak and less hamburger, then for you hamburger would be considered a(n):
a. normal good.
b. substitute good.
c. complementary good.
d. inferior good.
e. luxury good.
d. inferior good.
An increase in the demand for gasoline today caused by concerns that gasoline prices will be higher tomorrow is most likely attributable to which of the following?
a. Income
b. Consumer expectations
c. Consumer preferences
d. Prices of other goods
e. Producer expectations
b. Consumer expectations
If the price of good X increases, you would expect the:
a. supply curve for good X to shift to the left.
b. quantity of good X supplied to increase.
c. quantity of good X supplied to decrease.
d. supply curve for good X to shift to the right.
e. demand curve for good X to shift to the left.
b. quantity of good X supplied to increase.
A direct relationship between price and quantity is represented by:
a. the demand curve.
b. the supply curve.
c. the production possibility frontier.
d. equilibrium.
e. the utility curve.
b. the supply curve.
If a good is very inexpensive, but it is a necessity with very few substitutes, you would predict the price elasticity of demand for the good is:
a. elastic.
b. inelastic.
c. unit-elastic.
d. perfectly elastic.
e. perfectly inelastic.
b. inelastic.
When the price of corn is rising, we would expect:
a. the quantity demanded for corn to be rising.
b. the quantity supplied of corn to be rising.
c. the demand for corn to be shifting inward.
d. the supply of corn to be shifting outward.
e. the supply of corn to be shifting inward.
b. the quantity supplied of corn to be rising.
A decrease in supply means:
a. a shift to the left of the entire supply curve.
b. moving downward (to the left) along the supply curve with lower prices.
c. less will be demanded at every price.
d. more will be supplied at every price.
e. a shift to the left of the entire demand curve.
a. a shift to the left of the entire supply curve.
Holding everything else constant, if the price of X decreases and the demand for Y increases, then this most likely means that X and Y are:
a. efficiency goods.
b. substitutes.
c. inferior.
d. normal.
e. complements.
e. complements.
The price elasticity of a good will tend to be greater:
a. the longer the relevant time period.
b. the fewer the number of substitute goods available.
c. if it is a staple or necessity with few substitutes.
d. if the share of income spent on the good is small.
e. if it is a luxury good with no substitutes.
a. the longer the relevant time period.
A technological advance in the production of automobiles will:
a. increase the demand for automobiles.
b. increase the supply of automobiles.
c. decrease the demand for automobiles.
d. decrease the supply of automobiles.
e. have no effect on the demand or supply of automobiles.
b. increase the supply of automobiles.
Gas prices recently increased by 25%. In response, purchases of gasoline decreased by 5%. Based on this data, the price elasticity of demand for gas is:
a. 5.
b. 2.
c. 0.2.
d. 0.5.
e. 1.5.
c. 0.2.