ECON 213 quiz 7 complete solutions answers Liberty University

ECON 213 quiz 7 complete solutions answers Liberty University More than 11 different versions Question 1 When you change your quantity demanded of one good because of a change in price of another good, you are acting according to the principle of: Question 2 Used car dealers find that their sales rise in a recession.

We can be certain that consumers view used cars as: Question 3 Refer to the following graphs to answer the questions that follow: Which of these graphs most likely depicts a price elasticity of demand of –5? Question 4 When the price of scooters drops by 5%, the quantity demanded changes by 20%.

You know that the price elasticity of demand for scooters is: Question 5 If the cross¬price elasticity of demand between Good A and Good B is 3, the price of Good B increases, and the price elasticity of demand for Good B is inelastic, we can expect to see a ________ change in the quantity demanded for Good A: Question 6 Refer to the accompanying table.

The price elasticity of demand of erasers is __________ when the price is lowered from $1.50 to $1.00. Sellers of erasers will __________ their total revenue from this price change. Question 7 The price elasticity supply of doctors could be considered ________ because it takes a minimum of four to six years of training to be able to work as a physician.

Question 8 If the cross¬price elasticity of demand between Good A and Good B is 2 and the percentage change in price of Good A is 5%, what is the percentage change in quantity demanded of Good B?

Question 9 Price elasticity of demand is measured as the: Question 10 When the price increases by 30% and the quantity demanded drops by 30%, the price elasticity of demand is: Question 11 At higher prices, the price elasticity of demand is likely to be __________, whereas it is likely to be __________ at lower prices. Question 12 Consider two labor markets.

In the first, the elasticity of supply is relatively elastic, while it is relatively inelastic in the latter. Imposing a minimum wage in each market would result in ________ unemployment in the first market and ________ unemployment in the second.

Question 13 If a business finds that demand for its good is very price elastic, it knows that: Question 14 If the income elasticity of demand is 0.5, the good will be a(n): Question 15 In the accompanying graph, the price elastic portion of demand is found in the ________ region and the price inelastic portion of demand is found in the ________ region of the graph.

Question 16 Use the following scenario to answer the questions that follow: Dairy Dream, a local ice cream store, finds that it sells out of ice cream sandwiches at the current price of $

1. It raises the price to increase its revenues and finds that no one buys ice cream sandwiches anymore. The owners raised the price because they believed that the demand for ice cream sandwiches is: Question 17 Shawna wins the lottery and her income increases by 60%. She used to buy 10 pints of cottage cheese per month and now she buys 12 pints.

Her income elasticity of demand for cottage cheese is ________, making it a(n) ________ good.

Question 18 If the cross¬price elasticity of demand is 6, Good A and Good B are: Question 19 The introduction of new gaming systems that can compete effectively with the Nintendo console will make the demand for the Nintendo console become: Question 20 Chris runs a sporting goods store and knows that the price elasticity of demand for his sports clothing line is –1.5. He is planning to lower prices by 10%.

The percentage change in quantity demanded will be: Question 1 When the price of softballs is high, a __________ in price will raise total revenue. When the price is low, the seller should __________ the price to increase total revenue.

Question 2 If the cross¬price elasticity of demand is –5, Good A and Good B are: Question 3 If the price elasticity of supply is 1.5, we know that supply is: Question 4 A local sandwich shop can quickly place an order for food with its local vendors if it uses up its existing resources quickly.

This indicates that the price elasticity of supply is: Question 5 If the owner of Sally’s Salty Treats finds that, in the long run, she can trade one type of input for another, the price elasticity of supply is: Question 6 While there are many pizza places in Curtisville, Pappy’s Pizza is known for its distinctive deepdish pizza with an almost pie¬like crust, whereas Momma’s Pizza Pizzazz is comparable to many other restaurants.

Pappy’s is likely to find that it can ________ prices to increase total revenue, and Mommas must ________ prices to increase total revenue. Question 7 Demand for which of the following goods/services is likely to be the LEAST elastic in a Minnesota winter? Question 8 Which one of the following pairs of goods is likely to have a negative cross¬price elasticity of demand?

Question 9 The income elasticity of demand for a good measures the responsiveness of ________ to a change in ________. Question 10 What good is most likely to have a negative income elasticity of demand? Question 11 The price elasticity supply of doctors could be considered ________ because it takes a minimum of four to six years of training to be able to work as a physician.

Question 12 Henry raised his quantity demanded of hockey pucks from 100 to 150 when the price fell from $5 to $3 per puck. Using the midpoint method, his price elasticity of demand is: Question 13 If the percentage change in quantity demanded of Good B is 2% and the percentage change in the price of Good A is –10%, what is the cross¬price elasticity of demand?

Question 14 When the price increases by 30% and the quantity demanded drops by 30%, the price elasticity of demand is: Question 15 What good is most likely to have an income elasticity of demand equal to 0.3? Question 16 The Sunny Softball league found that, when it changed its ticket prices from $10 to $5, there was a more than proportional but not infinite increase in atten...