the same because the percentage change in quantity demanded will remain the same. correct answers If you compute the price elasticity of demand using a quantity of tickets from 1 to 8 and using a quantity of tickets from 1,000 to 8,000, the value of the price elasticity of demand is
Elastic. cor...
ECON EXAM #2 (with Errorless answers)
the same because the percentage change in quantity demanded will remain the same. correct answers If
you compute the price elasticity of demand using a quantity of tickets from 1 to 8 and using a quantity of
tickets from 1,000 to 8,000, the value of the price elasticity of demand is
Elastic. correct answers A company doing marketing research finds that a 10 percent decrease in its
product's price would create a 12 percent increase in the quantity demanded of its product.
a. Based on this information, demand for the company's product is
Lower correct answers A company doing marketing research finds that a 10 percent decrease in its
product's price would create a 12 percent increase in the quantity demanded of its product.
Using this same information, the company should ________ the price of its product.
Unit-Elastic correct answers Gus buys cupcakes every Saturday morning. When he walks into the bakery,
he always orders by saying, "Give me $10 worth of cupcakes." What does this tell you about Gus's
elasticity of demand for cupcakes?
Gus's demand for cupcakes is
A and B are substitutes correct answers Suppose the cross elasticity of demand for products A and B is +
3.6 and for products C and D is −5.4.
What can you conclude about how products A and B are related?
C and D are complements correct answers What can you conclude about products C & D?
price elasticity of supply correct answers Percentage change in quality supplied/ percentage change in
price.
, E(s) = 0.75 correct answers Suppose the price of apples goes up from $20 to $22 a box. In direct
response, Goldsboro Farms supplies 1,200 boxes of apples instead of 1,000 boxes. Compute the
coefficient of price elasticity (midpoints approach) for Goldsboro's supply.
Elastic correct answers Is its supply elastic, or in elastic?
-Availability of complementary goods
-Luxuries versus necessities correct answers What are the major determinants of price elasticity of
demand?
Coming up correct answers Use those determinants and your own reasoning in judging whether demand
for each of the following products is probably elastic or inelastic:
Elastic correct answers Bottled Water
Inelastic correct answers Toothpaste
Elastic correct answers Crest Toothpaste
Inelastic correct answers Ketchup
Elastic correct answers Diamond bracelets
Inelastic correct answers Microsoft Windows Operating System
The price elasticity of demand would be more inelastic, and room rates would increase. correct answers If
a university passed a rule stating that university students must live in university dormitories, what effect
would this have on the price elasticity of demand for dorm space? How might this rule affect room rates?
Elastic correct answers Suppose the price of movie tickets changes. The price change leads to a 20
percent increase in the quantity demanded of movie tickets. This causes the total revenue from movie
tickets to increase by 10 percent.
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