MANAGERIAL ECONOMICS
5th Edition
ISBN: 9781337106658
Author: FROEB
Publisher: CENGAGE L
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Chapter 12, Problem 6MC
To determine
Acquiring substitute good.
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Students have asked these similar questions
The rate of changes in demand due to the changes in the determinants of demand is known as __________.
a.
Elasticity of demand
b.
Law of demand
c.
Quantity demanded
d.
Effective demand
If the price of home computers rises and people still buy more of them, then
a. the law of demand does not hold.
b. this could have been caused by a change in the none price determinants of demand.
c. demand has decreased.
d. the demand for home computers is elastic.
e. the demand for home computers is inelastic.
Suppose we observe that when the market price of a good rises dramatically (e.g., the price of houses during the pandemic) the quantity traded increases only slightly,
This would be because
Answers A - D
A.supply has increased and demand is very elastic.
B.supply has decreased and demand is very elastic.
C.supply has increased and demand is very inelastic.
D. demand has increased and supply is very inelastic.
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Similar questions
- The price of coffee rose sharply last month, while the quantity sold remained the same. Five people suggest various explanations: Leonard: Demand increased, but supply was perfectly inelastic. Sheldon: Demand increased, but it was perfectly inelastic. Penny: Demand increased, but supply decreased at the same time. Howard: Supply decreased, but demand was unit elastic. Raj: Supply decreased, but demand was perfectly inelastic. Who could possibly be right? Use graphs to explain your answer.arrow_forwardThe equilibrium price will be determined entirely by the demand when a.demand is perfectly inelastic. b.demand is downward sloping. c.supply is perfectly elastic. d.supply is perfectly inelastic.arrow_forwardAn increase in demand will have a ____ effect on price and a ____ effect on output when supply is relatively elastic.a. larger; smallerb. larger; largerc. smaller; largerd. smaller; smallerarrow_forward
- An increase in the supply of grain will reduce thetotal revenue grain producers receive ifa. the supply curve is inelastic.b. the supply curve is elastic.c. the demand curve is inelastic.d. the demand curve is elastic.arrow_forwardiii. A demand curve which is parallel to the vertical axis is: A. perfectly inelastic. B. perfectly elastic. C. relatively inelastic. D. relatively elastic.arrow_forward1. An example of a market where supply and demand are both inelastic. 2. An example of a market where both supply and demand are both elastic. 3. An example of a market where supply is inelastic and demand is elastic. 4. An example of a market where supply is elastic and deman is inelastic.arrow_forward
- . ______________ is the willingness to buy a product and the ability to pay for it. Select one: a.Demand b.Quantity c.The Law of Demand d.Elasticityarrow_forwardWhat is the concept of perfectly inelastic demand in economics? A. A situation where quantity demanded remains unchanged regardless of price changes B. A situation where price elasticity of demand is equal to zero C. A situation where price and quantity demanded move in opposite directions D. A situation where consumers are indifferent to changes in pricearrow_forwardWhich of the following causes for an increase in the supply of a product? a. An increase in the rate of tax b. An increase in the cost of production c. An increase in subsidy d. A decrease in the number of sellersarrow_forward
- The flatter the demand curve through a given point, the a. closer the price elasticity of demand will be to the slope of the curve. b. smaller the price elasticity of demand at that point. c. greater the price elasticity of demand at that point. greater the absolute value of the change in total revenue when there is a movement from that point upward and to the left along the demand curve. QUESTION 2 It is estimated that in Bangledesh the income elasticity of demand for fruits and vegetables is 0.638, while the income elasticity of demand for Tobacco is 1.139. This tells us that a. Tobacco is inferior, but fruits and vegetables are a normal good b. Both Tobacco and Fruits and Vegetables are inferior goods c. Fruits and Vegetables are inferior, but Tobacco is a normal good d. Both Tobacco and Fruits and Vegetables are normal goods QUESTION 3 Suppose that the cross-price elasticity of the demand for beer with respect to the price of wine is +0.30 in Sweeden, but -0.25 in Luxemborg. Which…arrow_forward6. The price of coffee rose sharply last month, while the quantity sold remained the same. Five people suggest various explanations: LEONARD: Demand increased, but supply was per- fectly inelastic. SHELDON: Demand increased, but it was perfectly inelastic. PENNY: Demand increased, but supply decreased at the same time. HOWARD: Supply decreased, but demand was unit elastic. RAJ: Supply decreased, but demand was per- fectly inelastic.arrow_forwardIf the price of a good falls and expenditure on the good rises, the demand for the good is A. Elastic B. Perfectly elastic C. Inelastic D. Unit elasticarrow_forward
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