Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
Chapter 04 - Elasticity
52. Refer to the above diagram which is a rectangular hyperbola, that is, a curve such that
each rectangle drawn from any point on the curve will be of identical area. In comparing the
price elasticity and the slope of this demand curve we can conclude that the:
53. Gigantic State University raises tuition for the purpose of increasing its revenue so that
more faculty can be hired. GSU is assuming that the demand for education at GSU is:
54. If the demand for farm products is price inelastic, a good harvest will cause farm revenues
to:
Chapter 04 - Elasticity
55. Other things the same, if a price change causes total revenue to change in the opposite
direction, demand is:
56. If the price elasticity of demand for a product is unity, a decrease in price will:
57. In which of the following cases will total revenue increase?
Chapter 04 - Elasticity
58. A manufacturer of frozen pizzas found that total revenue decreased when price was
lowered from $5 to $4. It was also found that total revenue decreased when price was raised
from $5 to $6. Thus,
Chapter 04 - Elasticity
59. Refer to the above diagram. In the P1P2 price range demand is:
60. Refer to the above diagram. In the P3P4 price range demand is:
61. The total-revenue test for elasticity:
Chapter 04 - Elasticity
62. If the University Chamber Music Society decides to raise ticket prices to provide more
funds to finance concerts, the Society is assuming that the demand for tickets is:
63. The state legislature has cut Gigantic State University's appropriations. GSU's Board of
Regents decides to increase tuition fees to compensate for the loss of revenue. The board is
assuming that the:
64. Which of the following is correct?
Chapter 04 - Elasticity
65. Suppose that the price of peanuts falls from $3 to $2 per bushel and that, as a result, the
total revenue received by peanut farmers changes from $16 to $14 billion. Thus:
66. Which of the following is correct?
Chapter 04 - Elasticity
67. Refer to the above diagram. Total revenue at price P1 is indicated by area(s):
68. Refer to the above diagram. If price falls from P1 to P2, total revenue will become area(s):
Chapter 04 - Elasticity
69. Refer to the above diagram. The decline in price from P1 to P2 will:
70. Refer to the above diagram. In the P1 to P2 price range, we can say:
Chapter 04 - Elasticity
71. Refer to the above diagram. If price falls from $10 to $2, total revenue:
72. Refer to the above diagram and assume that price increases from $2 to $10. The
coefficient of price elasticity of demand (midpoint formula) relating to this change in price is
about:
73. The demand schedules for such products as eggs, bread, and electricity tend to be:
Chapter 04 - Elasticity
74. The elasticity of demand for a product is likely to be greater:
75. We would expect:
76. The narrower the definition of a product:
Chapter 04 - Elasticity
77. The more time consumers have to adjust to a change in price:
78. The demand for autos is likely to be:
79. Price elasticity of demand is generally:
Chapter 04 - Elasticity
80. Which of the following generalizations is not correct?
81. If price and total revenue vary in opposite directions, demand is:
82. The demand for a luxury good whose purchase would exhaust a big portion of one's
income is:
Chapter 04 - Elasticity
83. The demand for a necessity whose cost is a small portion of one's total income is:
84. The price elasticity of supply measures how:
85. The main determinant of elasticity of supply is the:
Chapter 04 - Elasticity
86. Suppose the supply of product X is perfectly inelastic. If there is an increase in the
demand for this product, equilibrium price:
87. Refer to the above table. Over the $6-$4 price range, supply is:
Chapter 04 - Elasticity
88. Refer to the above table. Over the $8-$6 price range, supply is:
89. Refer to the above table. Over the $10-$8 price range, the elasticity coefficient of supply
is:
90. The supply of product X is elastic if the price of X rises by:
Chapter 04 - Elasticity
91. The supply of product X is inelastic (but not perfectly inelastic) if the price of X rises by:
92. The elasticity of supply of product X is unitary if the price of X rises by:
93. The supply of product X is perfectly inelastic if the price of X rises by:
Chapter 04 - Elasticity
94. The above diagram shows two product supply curves. It indicates that:
95. It takes a considerable amount of time to increase the production of pork. This implies
that:
Chapter 04 - Elasticity
96. Suppose that the price of product X rises by 20 percent and the quantity supplied of X
increases by 15 percent. The coefficient of price elasticity of supply for good X is:
Chapter 04 - Elasticity
97. Refer to the above diagram and assume that price increases from $2 to $10. The
coefficient of the price elasticity of supply (midpoint formula) relating to this price change is
about:
98. Refer to the above diagram and assume that price decreases from $10 to $2. The
coefficient of the price elasticity of supply (midpoint formula) relating to this price change is
about:
Chapter 04 - Elasticity
99. The above diagram concerns supply adjustments to an increase in demand (D1 to D2) in
the immediate market period, the short run, and the long run. Supply curves S1, S2, and S3
apply to the:
