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54 Multiple choice questions

  1. Percentage
  2. Nonlinear
  3. Percent change in qunaity demanded over the percent change in income
  4. There can be more than one demand curve associated with the market.
  5. Measures of the sensitivity of one variable to another.
  6. Elasticity of demand between 0 and 1.
  7. An elasticity measured just a short time after a price change.
  8. Movement along
  9. Income elasticity of demand
  10. Yep.
  11. Page 122
  12. Shows the quantity demanded at different prices when people only have a short period of time ( a few weeks or a few months) to adjust.
  13. In a special case of a straight-line demand curve, demand becomes more and more elastic as we move upward and leftward along the curve.
  14. YEP
  15. Good point.
  16. Income elasticity
  17. YEP.
  18. The quantity demanded is relatively insensitive to price changes.
  19. A price elasticity of demand approaching infinity.
  20. A price elasticity of demand greater than 1.
  21. because farmers have the time to make further adjustments to increase production, such as shifting from other crops to corn.
  22. The percentage change in quantity supplied caused by a 1% change in price. Percent change in price of quantity suppled divided by percent change in price.
  23. greater
  24. Midpoint
  25. An elasticity measured a year or more after price change.
  26. greater
  27. Shows quantity demanded after buyers have had much longer to adjust to a price change-- a year or more.
  28. Elasticity values from data on prices and quantities
  29. Page 121
  30. That quantity demanded is relatively sensitive to price changes.
  31. It measures the sensitivity of quantity demanded to the price of the good itself. The percentage change in quantity demanded divided by the percentage change in price.
  32. Linear
  33. They tell us the percentage change in one variable caused by a 1% change in the other.
  34. Less elastic
  35. A price elasticity of demand equal to 0.
  36. Yes.
  37. The longer we wait after a price change, the greater the supply response to a price change.
  38. Compliment
  39. Cross price elasticity
  40. THe answer depends on the price elasticity of demand for the good. Note that the total revenue of sellers in a market (TR) is the price per unit ℗ times the quantity that people buy. TR= P x Q. When we raise price, p goes up, but q goes down. What happens to the product depends on which one changes by a larger percentage.
  41. 1. the less we regard the good as a necessity, 2. the easier it is to find substutitues for the good 3. the greater the share of householders' budget that is spent on the good, and 4. the more time we allow for quantity demanded to respond to the price change.
  42. Elastic
  43. move along
  44. Long, short
  45. A price elasticity of demand equal to 1.
  46. Yep.
  47. Wow, good point.
  48. More elastic
  49. Inelastic
  50. Along
  51. Downward
  52. price
  53. The percentage change in the quantity demanded of one good caused by a 1% percent change in the price of another good.
  54. Inelastic, elastic