6. The cross-price clasticity of demand for commodity A with respect to the price of Commodity B s negativg; the cross-price elasticity demand of Commodity C with respect to the price of Commodity B is positive. Which of the following is true? O Commodity A and Commodity B must be complements (b. Commodity C and Commodity B must be complements C. Commodity A and Commodity C must be substitutes d. None of the above

6. The cross-price clasticity of demand for commodity A with respect to the price of Commodity B s negativg; the cross-price elasticity demand of Commodity C with respect to the price of Commodity B is positive. Which of the following is true? O Commodity A and Commodity B must be complements (b. Commodity C and Commodity B must be complements C. Commodity A and Commodity C must be substitutes d. None of the above

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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3. The variety of demand curves The following graph displays four demand curves (LL, MM, NN, and OO) that intersect at point A. RCE (Dollars per unit) C 100 90 80 70 60 50 40 1 20 10 n B B 1 4+ 0 CI Statement لات " לב N .. O 30 40 90 CL ma QUANTITY (Unite) THEME 8 ILI N Between points A and C, curve MM is inelastic. M IN Ushig the groph, complete the table that folleme by indicating whether such statement & tree or foke. (Hint: You com display the coordinates by clicking the winds) 70 80 90 100 ? Curver MM incluses plusdiy: bei wenn quinis. A and C thân curve:ÑÑ is Jusiween puinis Â and D. Between points A and B, curve LL is perfectly inelastic. True False
QUESTION 1 Quantity demanded Price Elasticity 1 100 $5 ? 2 80 $10 ? 3 60 $15 ? 4 40 $20 ? 5 20 $25 ? 5 10 $30 ? Use the hypothetical demand schedule for movies above and d etermine the price elasticity of demand at each quantity demanded using the point formula. a. Quantity demanded Price Elasticity 1 100 $5 -0.2 2 80 $10 -0.5 3 60 $15 -1.0 4 40 $20 -2.0 5 20 $25 -2.5 5 10 $30 ----- b. Quantity demanded Price Elasticity 1 100 $5 ------ 2 80 $10 -0.2 3 60 $15 -0.5 4 40 $20 -1.0 5 20 $25 -2.0 5 10 $30 -2.5 c. Quantity demanded Price Elasticity 1 100 $5 -0.2 2 80 $10 -0.5 3 60 $15 -1.0 4 40 $20 -2.0 5 20 $25 -2.5 5 10 $30 -3.0 d.…
7 The "law of demand" states that changes in demand are related to changes opposite way in its supply. none of the answers given is true. demand are related directly to changes in supply. O the quantity demanded of a good are in opposite way with its price. the quantity demanded of a good are not related to changes in the quantity supplied.
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Price A) Price C) Do Quantity Quantity Di Price B) Price Panel D) shows which of the following? D) ✓ D₁ Quantity 0₁ Do Quantity O a decrease in demand and an decrease in quantity supplied O a decrease in demand an a decrease in supply O an increase in demand and a decrease in quantity supplied O an increase in quantity demanded and an increase in quantity supplied
Which of the following is true if both the demand for and supply of oranges increase? A. it is clear that prices will increase, the change in the quantity of oranges sold is ambiguous. B. it is clear that quantity sold will increase, the change in the price of oranges is ambiguous. C. it is clear that prices will decrease, the change in the quantity of oranges sold is ambiguous. O D. it is clear that quantity sold will decrease, the change in the price of oranges is ambiguous.
nich of the following statements relating to demand and supply is false? The substitution of higher-priced item with lower-priced goods by buyers is a reason why the quantity demanded of a good decreases when price increases. The demand curve of a good represents the value that individual buyers place on that good. Based on the income effect, the real income of buyers increases when the price of a good increases, and hence the quantity demanded of a good increases with price. O The supply curve of a good represents the opportunity costs to produce and sell the good for individual sellers of that good.
1. Supposed that UMA Condominiums are an ordinary good and demand for Condominiums is inelastic. What is the effect on Nagenyos Consumer Surplus if there is a decrease in price of Condominiums? Explain. 2. Based from your answer in the questions pertaining to the supply of Condominiums in response to the demand of Nagenyos, enumerate at least two (2) possible effects of the determinants of demand ( (a) price, (b) income, (c) price of related goods like apartments and residential houses, and (d) consumer taste and expectation) and determinants of supply ( (a) flexibility of inputs, (b) mobility of inputs, (c) ability to produce substitute and (d) time ).
2. Individual and market demand Suppose that Brian and Crystal are the only consumers of scented candles in a particular market. The following table shows their annual demand schedules: Price Brian's Quantity Demanded Crystal's Quantity Demanded (Dollars per candle) (Candles) (Candles) 2 16 28 4 20 6 4 12 2 10 2 On the following graph, plot Brian's demand for scented candles using the green points (triangle symbol). Next, plo: Crystal's demand for scented candles using the purple points (diamond symbol). Finally, plot the market demand for scented candles using the blue points (circle symbol). 12 10 Brian's Demand Crystal's Demand llars per candle)
If the price elasticity of demand has a value of -1.3, this means: Select one: O a. A 1 percent increase in the price of the good causes quantity demanded to decrease by 1.3 percent. O b. A 1 percent increase in the price of the good causes quantity demanded to increase by 1.3 percent. O c. A 1.3 percent increase in the price of the good causes quantity demanded to decrease by 1 percent. O d. A$1 increase in price causes quantity demanded to fall by 1.3 units.