if the income elasticity of the product is less than 1. During an economic crisis a reasonable manager will likely a. Realize that it is an inferior good and will request BOT to convert the product to a normal good b. Request for an increase in production c. All of the choices are reasonable d. In an economic crisis, a good manager need to conduct analysis and evaluation. We cannot manage what we cannot measure. e. Request for a decrease in production

if the income elasticity of the product is less than 1. During an economic crisis a reasonable manager will likely a. Realize that it is an inferior good and will request BOT to convert the product to a normal good b. Request for an increase in production c. All of the choices are reasonable d. In an economic crisis, a good manager need to conduct analysis and evaluation. We cannot manage what we cannot measure. e. Request for a decrease in production

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter5: Elastic And Its Application

Section: Chapter Questions

Problem 10PA

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Similar questions

The price elasticity of demand is more likely to be inelastic if Othere are a lot of substitutes available. O the price of the product is a large fraction of income. Othere is a long time frame involved. O the product is a necessity.
If the price of a product decreases by 10 percent and the quantity demanded increases by 5 percent, then O the producer should lower the price further to sell more and further increase total revenue. the producer should raisc the price, but not as high as it was, to increase total revenue. O the produucer should raise the price higher than where it was to experience higher total revenue. O the producer should change the price back to where it was before the change.
Elasticity measures Select one: a. The slope of a demand curve b.The inverse of the slope of a demand curve. c.Sensitivity of price to a change in quantity. d.The percentage change in one variable in response to a one present increase in another variable.
When the demand for a product is said to be perfectly inelastic, it implies that: A. The demand curve for the product is relatively flat. B. As price increases, the quantity demanded increases. C. The sales of the product are very sensitive to changes in price. D. The profit per-unit increases with an increase in price. E. With a change in price, change in quantity demanded is zero.
Elasticity of rubber is greater than iron under same stress a. cause the cells of rubber tougher .b. cause the cells of iron tougher .C. cause the cell of iron weak d. A and B e. cause the cells of rubber weak
Price elasticity of demand. If the price elasticity of demand for a product measures 0.45, then: Select the correct answer (A) this good has many available substitutes. B this good must be a non-essential good. C this good is a high-priced good. (D) a decrease in price will increase total revenue. E this good is demand price inelastic.
The longer the time period under study, a. the more inelastic is the price elasticity of demand. b. the more likely any given price cut will result in a smaller reaction by the consumer. c. the less sensitive consumers will be to price changes. d. the more elastic is the price elasticity of demand.
The demand for necessities ___a. is more elastic than the demand for luxuries.b. is less elastic than the demand for luxuries.c. All of the above.d. have the same elasticity demand with luxuries.
a. is decreased; inelastic b. is decreased; elastic c. is increased; elastic d. is increased; unit elastic
the pilge elasticity of cemand for a product is05. then a price cut fromn $3.00 to $2.70 wll Multiple Choice leBook, increase the quantity demanded by about 50 percent. decrease the quantity demanded by about 5 percent. 33好好好洛影 B888868 increase the quantity demanded by about 5 percent. increase the quantity demanded by about 20 percent. 15
Suppose there is a single commodity that absorbs all of a consumer's income. a. What is the consumer's price elasticity of demand for the commodity? b. What is the consumer income elasticity of demand for the commodity?
Suppose reports indicate that natto is the new health food, both for the body and the mind. This report will cause the market demand for natto to which will be eliminated as the market price of natto. constant. Select one: A. decrease; shortage; increases B. increase; surplus; increases OC. increase; shortage; increases OD. decrease; surplus; increases E. decrease; shortage; decreases F. increase; shortage; decreases OG. increase; surplus; decreases OH. decrease; surplus; decreases _, resulting in a , everything else held