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1-Economists recently found that a lot of increase in the price of beer caused the quantity demanded of wine to increase by 4%. This means that the cross-price elasticity of demand between beer and wine is.
a. 0.4, and beer and wine are substitutes
b. 2.5, and beer and wine are complements
c. 0.4, and beer and wine are complements
d. 2.5, and beer and wine are substitutes.

2. A I0% increase in the price of a movie ticket in Westridge 8 leads to an l5Yo decrease in the number of tickets sold, indicating the demand for movie tickets in Westridge 8 is:
a. elastic.
b. inelastic.
c. unit elastic.
d. Can not tell from the information given.

3. If economists estimate that the price elasticity of the supply of physician services is 0.2 then the supply of physician services is_ anda25o/o decrease in the price of physician services will result in the quantity supplied of physician services.
g. inelastic; 5olo decrease
h. inelastic; 5olo increase
i. inelastic;25Yo decrease
j. inelastic; 25olo increase
k. inelastic; 500/o decrease
l. inelastic; 500/o increase


4. A 5% decrease in the price of country music concert tickets causes a 15o/o increase in the demand for beer then the cross-price elasticity of demand between country music concert tickets and beers
a. -3.0 and tickets and beer are complements
b. -0.3 and tickets and beer are complements
c. -3.0 and tickets and beer are substitutes
d. -0.3 and tickets and beer are substitutes


5. An economist for the jeans industry has estimated the price elasticity of demand for blue jeans at -2.9. Based on this estimate 5o/o decrease in the price of jeans would result in a
a. 145% decrease in the quantity demanded of jeans
b. 14.5% increase in the quantity demanded of jeans
c. 2.9%o decrease in the quantity demanded of jeans
d. 2.9Yo increase in the quantity demanded of jeans

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Ritu Kharb
Ritu KharbLv5
28 Sep 2019
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Related questions

1. Which of the following would most likely cause the demand for veggie-burgers to increase?

a. A decline in the price of veggie-burgers.

b. An increase in the price of tofu-burgers perceived as a substitute for veggie-burgers.

c. An increase in the price of burger buns.

d. A technological innovation that lowers the cost of producing veggie-burgers.

2. Suppose a new chip has been invented which makes the computer (a normal good) cheaper to manufacture while, at the same time, the incomes of consumers decreased. What would be the result in the home computer industry?

a. Quantity unambiguously decreases while the price change is uncertain.

b. Quantity unambiguously increases while the price change is uncertain.

c. Price unambiguously decreases while the quantity change is uncertain.

d. Price unambiguously increases while the quantity change is uncertain.

3. "The winds of the recent hurricanes in Florida are bringing soothing financial gains to California citrus growers. Due to the extensive damage to the Florida citrus crop, California citrus products are commanding their highest prices ever."

Which of the following statements best explains the economics of the quotation?

a. The supply of Florida oranges has decreased, causing their prices to increase and the demand for the substitute California oranges to also increase.

b. The supply of Florida oranges has decreased, causing the supply of California oranges to increase and their prices to rise.

c. The demand for Florida oranges has been reduced by the hurricanes, causing a greater demand for the California oranges and an increase in their price.

d. The demand for Florida oranges has been reduced causing their prices to fall and therefore increasing the demand for the substitute California oranges.

4. Which of the following best describes the economic concept of demand?

a. A relation showing the quantities of a good that consumers are willing and able to buy at various prices during a given period of time, other things constant.

b. A relation showing the quantities of a good that producers are willing and able to supply at various prices during a given period of time, other things constant.

c. A relation showing the quantity of a good that consumers would most prefer to have during a given period of time, regardless of price.

d. None of the above.

5. Increases in demand for ethanol fuel has likewise driven up the demand for corn. As a result, corn prices have risen. The production of beer uses other agricultural crops, such as barley, which can be grown in the same climate and land conditions as corn. The likely impact of this event on the beer market is

a. An increase in the demand for beer driving beer prices higher.

b. A decrease in the demand for beer driving beer prices lower.

c. An increase in the supply of beer driving beer prices lower.

d. A decrease in the supply of beer driving beer prices higher.

6. Which of the following goods is most likely to be an inferior good?

a. Rib Eye Steak

b. A Trek bicycle

c. Hot Dogs

d. French Wine

7. Which of the following is most likely to decrease the supply of pink salmon?

a. A decline in the price of salmon.

b. An increase in the price of white wine, a complement good.

c. A virus that results in decreased egg production in pink salmon.

d. A technological advance in fishing techniques.

8. In order to balance the County's budget, the County Executive increased the price of using the Frequent Flyer shuttle to SummerFest from $6 to $9. After this price increase was put into effect, however, the County Executive found that revenue from the Flyer actually decreased. We can conclude that the demand for the Frequent Flyer Shuttle is:

a. elastic

b. inelastic

c. unit elastic

d. zero elastic

9. In order to balance the County's budget, the County Executive increased the price of using the Frequent Flyer Shuttle to SummerFest from $6 to $9. The percentage change in the price of the Frequent Flyer Shuttle was:

a. $3

b. 50%

c. 33%

d. Impossible to determine with the information given.


47. When a public transit system (such as a subway or bus line)raises its fares, it may experience an increase in total revenue.This suggests that demand is:
A) unstable.
B) price inelastic.
C) price elastic.
D) unit price elastic.
45. If the quantity demanded of agricultural output is veryunresponsive to a fall in price, the demand for agricultural outputis:
A) price elastic.
B) price inelastic.
C) positively sloped.
D) horizontal.
48. A constant price elasticity of demand curve is one whose:
A) slope is the same at every point on the curve.
B) price elasticity of demand is the same at every point on thecurve.
C) quantity is the same at every point on the curve.
D) price elasticity of demand and slope are the same at every pointon the curve.

49. Whenever supply increases, the resulting market price willalways be lower except:
A) when demand is perfectly price elastic (when the demand curve ishorizontal).
B) when demand is completely price inelastic (when the demand curveis vertical).
C) when supply is perfectly price inelastic (when the supply curveis vertical).
D) in the case of demand having unit price elasticitythroughout.

50. A demand curve that is perfectly inelastic:
A) will be vertical.
B) will be horizontal.
C) will be upward sloping.
D) has an elasticity equal to 1 everywhere on the curve.

a. If a 10 percent increase in price decreases the quantity demanded by 12 percent, the price elasticity of demand is ____________.

b. The price of strawberries falls from $1.50 to $1.00 per carton and the quantity demanded goes from 100,000 to 200,000 cartons. Calculate the price elasticity of demand and interpret it in words.

c. At the present level of consumption, 4,000 movie tickets, and at the current price, $5 per ticket, the price elasticity of demand for movie tickets is 1. Calculate the percentage by which the owners of movie theaters must reduce the price in order to sell 5,000 tickets.

d. The price elasticity of demand for ice-cream sandwiches is 1.2 at the current price of $0.50 per sandwich and the current consumption level of 100,000 sandwiches. Calculate the change in the quantity demanded when the price rises by $0.05.

e. Calculate the price elasticity of supply for web-design services when the price per hour rises from $100 to $150 and the number of hours transacted increases from 300,000 to 500,000. Is supply elastic, inelastic, or unit elastic?

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