Question
Hi I have difficulty understanding the following exercise thank you for your help. 40. Refer to the above Figure. At a price of P1: Select
Hi I have difficulty understanding the following exercise thank you for your help.
40. Refer to the above Figure. At a price of P1:
Select one:
- D2 is more elastic than D1
- D1 is more elastic than D
- D2 is more elastic than D
- D is more elastic than D1
46. What effect will an increase in the price of grapes have in the market for wine?
Select one:
- Increase demand
- Increase supply
- Decrease supply
- Decrease demand
47. Refer to data above. If the price falls to $4, then total revenue will:
Select one:
- increase to $840
- fall to $300
- fall to $280
- increase to $560
50. Refer to the following situation for the questions below. The coefficient of the price elasticity of demand for a good is 2. The price is now $5, and the quantity demanded at that price is 100. Refer to data above. If the price rises to $6, then total revenue will change to:
Select one:
- $360
- $500
- $600
- $300
53. If the cross-price elasticity of demand between A and B is 0.65, then we know that:
Select one:
- A and B are complements
- A and B are substitutes
- the demand for B is inelastic
- the demand for A is elastic
54. If the supply of apartments is increasing more rapidly than the demand, the likely result will be
Select one:
- lower apartment rents.
- higher apartment rents.
- an increase in the demand for single-family homes, a substitute for apartments.
- higher apartment rents and an increase in the demand for apartments and mobile homes.
- an increase in the demand for mobile homes.
56. An increase in income from $7500 to $9000 causes an increase in purchase of a good from 3000 to 3500 units. The mid-point income elasticity of demand for that good must therefore be:
Select one:
- 0.83
- 0.61
- 3.60
- 1.20
59. A perfectly inelastic demand curve is likely to exist for which of the following items?
Select one:
- fresh produce
- beef
- prescription drugs
- beer
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