10.An elastic demand curve is one for which: the absolute change in price is smaller than the absolute change in quantity demanded a given percentage change in price causes a larger percentage change in quantity demanded the absolute change in price is bigger than the absolute change in quantity demanded a given percentage change in price causes a smaller percentage change in quantity demanded 11.If a business can sell 3000 units of a product at $10 per unit and 5000 units at $8 per unit, its demand is: elastic perfectly elastic inelastic perfectly inelastic 12.In which of the following instances does total revenue increase? price falls and demand is unit-elastic price rises and demand is inelastic price rises and demand is elastic price falls and demand is perfectly inelastic3
Just solve questions 10-12, thank u!
- 5.The basic purpose of the ceteris paribus
assumption is to:
- isolate the relationship between two variables
by assuming all other factors remain constant
- allow one to focus upon micro variables by
ignoring macro variables
- allow one to focus upon macro variables by
ignoring micro variables
- determine whether x causes y or vice versa
- 6.The
law of demand states that: price and quantity demanded are inversely
related
- the larger the number of buyers in a market, the
lower the price of the product
- price and quantity demanded are directly
related
- consumers buy more of a given product at high
prices than they buy at low prices
- 7.Which of the following does not cause the
demand for product K to change?
- a change in the price of substitute product J
- an increase in consumer incomes
- a change in the price of K
- a change in consumer preferences
- 8.The law of supply indicates that:
- producers will offer more of a product at high
prices than they will at low prices
- the supply curve is downward-sloping
- consumers will purchase less of a product at
high prices than they will at low prices
- producers will offer more of a product at low
prices than they will at high prices
- 9.The price elasticity of demand indicates:
- How much consumers respond to a change in
price
- How much a demand curve shifts as income
changes
- How much changes in a product's price affect
consumers' incomes
- How much business executives can stretch their
fixed costs
- 10.An elastic demand curve is one for which:
- the absolute change in price is smaller than the
absolute change in quantity demanded
- a given percentage change in price causes a
larger percentage change in quantity demanded
- the absolute change in price is bigger than the
absolute change in quantity demanded
- a given percentage change in price causes a
smaller percentage change in quantity
demanded
- 11.If a business can sell 3000 units of a product at
$10 per unit and 5000 units at $8 per unit, its
demand is:
- elastic
- perfectly elastic
- inelastic
- perfectly inelastic
- 12.In which of the following instances does total
revenue increase?
- price falls and
demand is unit-elastic - price rises and demand is inelastic
- price rises and demand is elastic
- price falls and demand is perfectly inelastic3
13.The demand curve for chocolate shifts to the right if:
- the price of chocolate increases
- medical studies conclusively find that chocolate helps
fight migraines
- consumers expect the price of chocolate to fall in the
future
- the government imposes a new tax on milk
- the price of chocolate decreases
- 14.If we say that two variables are inversely related,
this means that:
- there is no relationship between the two variables
- an increase in one variable is associated with a
decrease in the other variable
- an increase in one variable is associated with an
increase in the other variable
- an increase in one variable is associated with no
change in the other variable
15 When the price of a good is below its
equilibrium
- a shortage puts upward pressure on the price
- a surplus puts downward pressure on the price
- a shortage puts downward pressure on the
price
- a surplus puts upward pressure on the price
16 Assuming intercity bus travel is an inferior
good, a decrease in consumer income will cause
which of these effects
- a movement up along the demand curve for
bus travel
- a movement down along the demand curve for
bus travel
- a rightward shift in the demand curve for bus
travel
- a leftward shift in the demand curve for bus
trave
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