Consider the product of gasoline. Its PES is estimated at 1.6. Which of the following would be true? a) Gasoline’s supply is inelastic b) Its supply curve is a steep, upward sloping line c)Its supply curve is a vertical line d) Its supply curve is a flat, upward sloping line e) None of the above 2. Think about the market for gasoline again. Due to the rise of electrical and hybrid cars, there is a decrease in tastes and preferences for gasoline. What is the effect on this market? a) Price falls and quantity increases b) There is a greater decrease in quantity than in the price c)There is a greater increase in quantity than in the price d) The demand curve will become more steep e) None of the above 3. Please complete the following sentence. The more inelastic the supply curve... a) the more consumer surplus created by implementing a tax on a product b) the greater the tax burden on the buyers c)the greater the tax burden on the sellers d) the more a shift in the demand curve causes a greater change in the quantity than in the price e) None of the above 4. Consider a study of the telecommunications industry in Mexico. According to the data, the lack of competition in the industry leads to consumer surplus being $25 billion lower per year than if there was more competition. What does this number mean? a) Tells us the decline in the amount of money people spend on telecommunications per year b) Tells us the increase in the price that people need to pay for telecommunications per year c)Tells us the decline in the consumption of telecommunications per year d) Tells us the decline in the net benefit to consumers of this industry per year due to the lack of competition e) None of the above
Consider the product of gasoline. Its PES is estimated at 1.6. Which of the following would be true? a) Gasoline’s supply is inelastic b) Its supply curve is a steep, upward sloping line c)Its supply curve is a vertical line d) Its supply curve is a flat, upward sloping line e) None of the above 2. Think about the market for gasoline again. Due to the rise of electrical and hybrid cars, there is a decrease in tastes and preferences for gasoline. What is the effect on this market? a) Price falls and quantity increases b) There is a greater decrease in quantity than in the price c)There is a greater increase in quantity than in the price d) The demand curve will become more steep e) None of the above 3. Please complete the following sentence. The more inelastic the supply curve... a) the more consumer surplus created by implementing a tax on a product b) the greater the tax burden on the buyers c)the greater the tax burden on the sellers d) the more a shift in the demand curve causes a greater change in the quantity than in the price e) None of the above 4. Consider a study of the telecommunications industry in Mexico. According to the data, the lack of competition in the industry leads to consumer surplus being $25 billion lower per year than if there was more competition. What does this number mean? a) Tells us the decline in the amount of money people spend on telecommunications per year b) Tells us the increase in the price that people need to pay for telecommunications per year c)Tells us the decline in the consumption of telecommunications per year d) Tells us the decline in the net benefit to consumers of this industry per year due to the lack of competition e) None of the above
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Consider the product of gasoline. Its PES is estimated at 1.6. Which of the following would be true?
a) Gasoline’s supply is inelastic
b) Its supply curve is a steep, upward sloping line
c)Its supply curve is a vertical line
d) Its supply curve is a flat, upward sloping line
e) None of the above
2. Think about the market for gasoline again. Due to the rise of electrical and hybrid cars, there is a
decrease in tastes and preferences for gasoline. What is the effect on this market?
a) Price falls and quantity increases
b) There is a greater decrease in quantity than in the price
c)There is a greater increase in quantity than in the price
d) The demand curve will become more steep
e) None of the above
3. Please complete the following sentence. The more inelastic the supply curve...
a) the more consumer surplus created by implementing a tax on a product
b) the greater the tax burden on the buyers
c)the greater the tax burden on the sellers
d) the more a shift in the demand curve causes a greater change in the quantity than in the price
e) None of the above
4. Consider a study of the telecommunications industry in Mexico. According to the data, the lack of
competition in the industry leads to consumer surplus being $25 billion lower per year than if there
was more competition. What does this number mean?
a) Tells us the decline in the amount of money people spend on telecommunications per year
b) Tells us the increase in the price that people need to pay for telecommunications per year
c)Tells us the decline in the consumption of telecommunications per year
d) Tells us the decline in the net benefit to consumers of this industry per year due to the lack of
competition
e) None of the above
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education