1- If oil consumers anticipate that the price ofgasoline is going to increase next week, then:A- the demand for gasoline today willdecrease.B- nothing will happen to demand today, butquantity demanded will decrease due to thehigher price.C- the demand for gasoline today willincrease.D- nothing will happen to demand for gastoday because the price isn't expected tochange until next week.2- 'I, Pencil' illustrates that:A- the market system mobilizes individualcreativity in a way that other systems ofeconomic organization do not.B- pencils are superior writing instruments topens.C- centrally-planned economies are able toproduce pencils well.D- the market system helps to keep Parissupplied with all of the material goods itsresidents need3-Which of the following best describes thedifference between a decrease in quantitydemanded and a decrease in demand?A- A decrease in demand is caused by anincrease in price, whereas a decrease inquantity demanded is caused by a number offactors, such as an increase in the price of acomplementB- A decrease in quantity demanded iscaused by an increase in price, whereas adecrease in demand is caused by a number offactors, such as a complement becomingmore expensive.C- There is no difference; both events havethe same underlying causes.D- There is only ever a decrease in demandwhen supply also decreases.4- Which of the following does not affectdemand for a product?A- A new subsidy for consuming that productimplemented by the government.B- The technology used to produce thatproduct.C- Consumer expectations about futureprices.D- The prices of complementary goods.

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ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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1. When the price of butter increases from $1 to $2, the quantity demand of margarine increases from 6 to 8. What is the cross-price elasticity of demand? A) (6-8)/8 (1-2)/2 (8-6)/6 (2-1)/₁ (1-2)/2 (8-6)/ B) D) (2-1)/₁ (6-8)/8
O 01 A headline reads "Perfect Weather Brings Record-High Coffee Harvest." This situation would lead to a(n) Increase in the price and a decrease in the quantity purchased of coffee. decrease in the price and an increase in quantity purchased of coffee. decrease in the price and in the quantity purchased of coffee increase in the price and in the quantity purchased of coffee
The table below shows the demand schedule for bagels. Price Quantity Demanded ($/pack) (# of Packs) $12 0 8 12,000 6 18,000 4 24,000 2 30,000 0 36,000 What is the price elasticity of demand when the price increases from $0 to $2? _________ Is demand elastic or inelastic? ___________ What is the price elasticity of…
Question 17 Kevin’s goal as a business manager is to increase total sales in dollar terms for his business. Should he raise or lower his prices? a raise prices if demand is elastic; lower prices if demand is inelastic b lower prices if demand is elastic; raise prices if demand is inelastic c raise prices regardless of whether demand is elastic or inelastic. d lower prices regardless of whether demand is elastic or inelastic.
Which would cause a decrease in the quantity of computers supplied? A. An increase in the demand for computers B. A decrease in the demand for computers C. An increase in the incomes of consumers D. A decrease in the price of parts for making computers
5) If a government sets a price below the equilibrium price(a) quantity demanded will be greater than quantity supplied.(b) the supply curve will shift to the left.(c) quantity demanded will equal quantity supplied.(d) demand will be less than supply.
Price $100 $80 $60 $40 $20 0 Quantity Demanded 0 10 20 30 40 50 a. Using the midpoint method, calculate the absolute values of the price elasticity of demand. b. Under which price level is the demand curve elastic? Under which price level is the demand curve inelastic? The b. What will happen to total revenue if price increase from $40 to $60? Why? (Explain in terms of price elasticity of demand).
8. If a seller facing excess demand is unable to raise the price of the good due to a price ceiling, the seller might: a. increase the quantity supplied of the product. b. decrease the price of the product. c, increase the quality of the product. d. decrease the level of service for that product.
an Layout References Mailings Review View Help CA ..A following questions. Quantity Demanded (bushels) 40,000 Price per bushel (in $) Quantity Supplied (bushels) 2 4 36,000 4,000 6. 30,000 24,000 8,000 16,000 10 20,000 20,000 28,000 36,000 40,000 12 18,000 14 12,000 16 6,000 a) What are the equilibrium price and quantity of wheat? Answer: the equilibrium price is $10, and quantity of wheat is $2000 bushels. b) Suppose the prevailing price is US$12 per bushel. Is there a shortage or a surplus in the market? Answer: c) What is the quantity of the shortage or surplus? Answer: d) How many bushels will be sold if the market price is US$4 per bushel? Answer: ited States) B Focus REDMI NOTE 9 AI QUAD CAMERA 144
66. Elasticity measures Select one: a. The percentage change in one variable in response to a one present increase in another variable. b. The inverse of the slope of a demand curve. c. The slope of a demand curve d. Sensitivity of price to a change in quantity.
2. The graph below shows the demand and supply of baseball caps with inflexible prices. Suppose that 100 baseball caps is the optimal and most profitable level of production for the firm. Price (S) 20 10 150 Baseball A. Determine the equilibrium price and quantity at the medium level of demand (DM) B. Determine the equilibrium price and quantity if there is a demand shock that unexpectedly lowers demand (DL). C. Determine the equilibrium price and quantity if there is a demand shock that unexpectedly increases demand (DH). D. What can you conclude will happen to prices and output when this model is shocked by changes in demand?
Demand for GPS Units 220 200 180- 160 - 140- 120- 100 80 60 40- 20- 40 60 120 160 200 240 260 320 360 400 440 Quantity (GPS units) Instructions: Round your answers to two decimal places. If you are entering any negative numbers be sure to include a negative sign () in front of those numbers. a. When going from a price of $120 per unit to a price of $100 per unit, what is the price elasticity of demand for GPS units? b. When going from a price of $100 per unit to a price of $120 per unit, what is the price elasticity of demand for GPS units? c. Using the midpoint formula, what is the midpoint price elasticity of demand for GPS units between a price of $120 per unit and a price of $100 per unit? d. When going from a price of $60 per unit to a price of $40 per unit, what is the price elasticity of demand for GPS units? e. When going from a price of $40 per unit to a price of $60 per unit, what is the price elasticity of demand for GPS units? t Using the midpoint formula, what is the…

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