13. If milk is a normal good, then a decrease in consumers' income will definitely causeA a decrease in the demand for milk.B an increase in the demand for milk.C an increase in the supply of milk.D a decrease in the supply of milk.E an increase in the demand and supply of milk.14. Zero economic profit earned by firms in a perfectly competitive market indicates thatA firms will exit in the long run.B total revenue covers all variable costs of production exactly.C MR < AR.D P= ATC.E zero nomal profit.15. In the market for cream, which of the following events would increase demand, ceteris paribus?A Increased health fears regarding the consumption of too much fat (cream contains fat)B A fall in the income of consumersC An increase in the price of scones, a complementD A drop in the price of yoghurt, a substitute

Demand: It refers to the goods and services which have been demanded by the consumers in an economy…

13. If milk is a normal good, then a decrease in consumers' income will definitely cause A a decrease in the demand for milk. B an increase in the demand for milk. C an increase in the supply of milk. D a decrease in the supply of milk. E an increase in the demand and supply of milk.

13. If milk is a normal good, then a decrease in consumers' income will definitely cause A a decrease in the demand for milk. B an increase in the demand for milk. C an increase in the supply of milk. D a decrease in the supply of milk. E an increase in the demand and supply of milk.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Which of the following causes the cross-elasticity of demand between two goods to be lower?(Faster) a. The greater the income elasticities of demand for the two goods b. The more they are regarded as dissimilar by consumers c. The greater the price elasticities of demand for the two goods d. The greater the difference in price between the two goods
5. If the price elasticity of demand for a good is 1.5, we would say that its demand is a)inelastic b)elastic c)increasing d)normal
3. Suppose that as the income level increases by 10% that the quantity demanded of that same item increases by 6%. a. Calculate the income elasticity of demand. b. What two things does the value in a tell you about the good in question?
QUESTION 11 Jennifer, an accountant, is promoted at the company she works for. Therefore, her salary increases. We would expect Jennifer's demand for a. all the goods she purchases to remain unchanged. b. normal goods to decrease. C. inferior goods to decrease. d. substitute goods to increase. O a d. QUESTION 12 If Andrea's boss informs her that she will get a salary increase next month. Then a. her demand for all goods will increase next months b. her demand for normal goods will increase next months C. her demand for normal goods increases now d. her demand for all goods increases now O a O d a all gnswers. ОООО
mes NOw... 12 B 10. Based on the following circumstances, will there be an increase in demand for jelly-filled doughnuts or a decrease in the demand for jelly-filled doughnuts? Highlight the correct answer. Circumstance Demand for Jelly-filled Doughnuts a. The number of consumers increases. Increase / Decrease b. The consumers' income decreases. Increase / Decrease c. Jelly-filled doughnuts become the most popular snack. Increase / Decrease d. The cost of a fruit pastry increases. Increase / Decrease e. The cost of coffee served with the doughnuts increases drastically $10.00 a cup Increase / Decrease Increase / Decrease f. The number of consumers decreases. Increase / Decrease g. The cost of a cherry strudel decreases. unnlu of ielly-filled doug
1. The price elasticity of demand for bread A. is computed as the percentage change in quantity demanded of bread divided by the percentage change in price of bread. B. will be higher if there is a new product that is a close substitute for bread. C. will be higher if consumers consider bread to be a necessity. D. All of the above are correct. E. A and B, only
1. Suppose the price elasticity of demand for good air travel is -1.5. Which of the following is a proper interpretation of the price elasticity of demand. a For every 1% increase in the price, the quantity of air travel purchased will increase 1.5% b For every 1.5% increase in the price, the quantity of air travel purchased will increase 1% c For every 1% increase in the price, the quantity of air travel purchased will decrease 1.5% d For every 1.5% increase in the price, the quantity of air travel purchased will decrease 1% 2. Suppose that Frank's income increased from $4,000/month to $4,500/month and as a result, the quantity of good X he purchased increased from 15 units/month to 16 units/month. In this case, good X is _____. a an inferior good b a normal good and a necessity c a normal good and a luxury d none of the above
Calculate your price elasticity of demand as the price of motor vehiclesincreases from $920 to $1300 when income is $15,000. Is the good elasticor inelastic? ii. Calculate your income elasticity of demand as your income increasesfrom $15,000 to $24,000 if the price moves from $640 to $1,120. What doesthe value tell you about the good?
15. Holding all else constant, a higher price for ski lift tickets would be expected to O A. increase the number of skiers O B. decrease the demand for other winter recreational activities O C. Decrease the supply of ski resorts O D. Decrease demand for skis
1. Which of the following is NOT true of a demand curve? a. It has negative slope. b. It shows the amount consumers are willing and able to purchase at various prices, holding other factors constant. c. It relates the price of an item to the quantity demanded of that item. d. It shows how an increase in price leads to an increase in quantity demanded of a good.
1. The price of a good rises from $6 to $8. Thus, the quantity demanded of that good falls from 150 to 75 units. Using the point-slope formula, calculate the Price Elasticity of Demand. Note: You’ll use this answer to help you with Question 2 & 3 (coming up next). A. -1.50 B. -0.66 C. -2 D. -0.04 E. -25 F. -1 2. Given your response in Question 1, classify the coefficient of the Price Elasticity of Demand. A. Elastic B. Inelastic C. Perfectly Elastic D. Perfectly Inelastic E. Unit Elastic 3. Which of the following statements is the best interpretation of the coefficient of the Price Elasticity of Demand in Question 1? A. There will be a 0.66 percent decrease in the Quantity Demanded. B. A 1 percent increase in the Price of a good corresponds to a 0.66 percent decrease in the Quantity Demanded for that good. C. A 1 percent increase in the Price of a good corresponds to a 1.55 percent increase in the Quantity Demanded for that good. D. Given the Price…
8 When the price of a pizza slice decreases from $2 to $1, the case should be in a way the None of the answers given here is correct. income effect means elasticity of demand increases from 1 to 2. quantity demanded of pizza will not change. substitution effect means people buy more pizza. O income effect means elasticity of income increases from 1 to 2.