ECON 102 Study Guide - Quiz Guide: Demand Curve, Economic Surplus, Economic Equilibrium

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turquoisegnu128

1 Oct 2018

School

University of Illinois

Department

Economics

Course

ECON 102

Professor

All

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ECON 102 Full Course Notes

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Price elasticity of demand is a measure of: a. ) Following a price decrease, total revenue will: a. ) Increase if the demand is price inelastic c. ) always increase d. ) always decrease. If the price elasticity of demand for concert tickets is 2. 12, then the demand is _______ and total revenue will ________ if the price of concert tickets increases. a. ) Elastic, increase c. ) elastic, decrease d. ) inelastic, decrease. * since the price elasticity of demand is larger than. This means that when the price increases, demand will be greatly affected, so total revenue will decrease. We would say that apples are a normal good if the. Price elasticity of demand, positive c. ) income elasticity of demand, positive d. ) price elasticity of demand, negative. If two goods have a negative cross-price elasticity of demand between them, we would say that these two goods are: a. )

Related Questions

1. An increase in the price of a good will

a. increase quantity demanded

b. increase demand

c. decrease demand

d. decrease quantity demanded

2. An increase in the price of good will

a. decrease quantity supplied

b. increase quantity supplied

c. decrease supply

d. increase supply

3. An increase in price causes an increase in total revenue when demand is

a. inelastic

b. elastic

c. unit elastic

d. all of the above

4. Which of the following could be the price elasticity of demand for a good for which a price increase would decrease revenue?

a. 1.0

b. 0.6

c. 2.6

d. 0.9

5. Other things equal, when the price of good falls, the

a. quantity supplied of good increases

b. demand increases

c. supply decreases

d. quantity supplied of the good decreases

brownantelope470

1. If a 3 percent increase in price leads to a 5 percent increase in quantity supplied, then

a. Supply is unit elastic

b. Demand is inelastic.

c. Demand is elastic.

d. Supply is elastic.

e. Supply is inelastic.

2. Moving along a demand curve, the quantity demanded decreases 8 percent when price increases 10 percent.

The price elasticity of demand is calculated to be ________.

Given the price elasticity of demand calculated in part a, demand is ________ (elastic, inelastic or unitary elastic) along this portion of the demand curve.

3. Fill in the blanks:

When demand is elastic, the _______ effect dominates the _______ effect.

When demand is inelastic, the _______ effect dominates the _______ effect.

4. Use the following coordinates to answer the following questions.

(2400, $0), (1800, $3), (1000, $7), and (0, $12)

a. Find the arc price elasticity of demand over the price range from $3 to $7. Interpret the value of price elasticity.

5. The elasticity of supply of compact discs is 1.5. In other words, a 10 percent increase in the price of compact discs will cause a a. 15 percent decrease in demand. b. 15 percent decrease in the quantity supplied. c. 15 percent increase in the quantity supplied. d. 1.5 percent increase in the supply. c. 1.5 percent decrease in the supply.

ECON 102 Study Guide - Quiz Guide: Demand Curve, Economic Surplus, Economic Equilibrium

ECON 102 Full Course Notes

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