if price rise from 10 - 12 dollar and quantity demanded decreases from 100 - 70 units so demand is elastic

TRUE

FALSE

The price elasticity of demand for furniture is estimated at 1.3. This value means a one percent increase in the

1. quantity of furniture demanded will decrease the price of furniture by 1.3 percent

2. price of furniture will decrease the quantity of furniture demanded by 1.3 percent .

3. quantity of furniture demanded will increase the price of furniture by 1.3 percent .

4. price of furniture will increase the quantity of furniture demanded by 1.3 percent

People buy more of good 1 when the price of good 2 rises. These goods are .

1. substitutes

2. inferior goods .

3. normal goods .

4. complements

If supply decreases and demand also decrease , so equilibrium quantity decrease and market price will not change

TRUE

FALSE

If technological advances lower the cost of computer chips, in the market for computers the equilibrium price will_______and the equilibrium quantity will

1. fall; increase

2. rise; increase

3. Fall; decrease

4. rise ; decrease

Which of the following increases the demand for a normal good

1. a decrease in income

2. The price of the good is expected to increase in the future

3. an decrease in the price of a substitute

4. an increase in the price of a complement

IF future prices in market expected to rise,so recent quatity supplied will decreases

TRUE

FALSE

If price of substitute good rises,so quantity demanded will incease but quantity suplied decreases for initia good

TRUE

FALSE

When demand = 23 - 3p and supply = 5 + 3p so equilibrium quantity equal .1

1. is 3 units

2. is 16 units

3. is less than 13 units

4. nothing is correct

If demand inceases more than increase in supply,market price will rise

FALSE

TRUE

?Which of the following shifts the supply curve for good X leftward

1. a technological advance in the production of X

2. a situation in which quantity demanded exceeds quantity supplied

3. an decrease in the cost of the machinery used to produce X

4. a increase in the wages of workers employed to produce X

If price fall quantity supplied decreases and shifts left

TRUE

FALSE

along strait line demand curve always in mid point PED will be unit elastic

TRUE

FALSE

While prices of factors of production: land -labor-capital will rise,so demand curve shifts right

TRUE

FALSE

If price fall 20% while inelastic demand will increase less than 20 %

TRUE

FALSE

in case of goods: toothpaste and toothbrushes , the____elasticity of demand is____

1. income; negative

2. cross; negative

3. cross; positive

4. income ; positive

Total revenue for a good is at a maximum when the price elasticity of demand is

1. zero

2. greater than 1

3. between 0 and 1

4. 1

If price rises from 18 to 20 and quantity demanded decreases from 1025 to 925 so demand is

1. perfect elastic

2. unit elastic

3. elastic

4. inelastic

If supply is price elastic

1. a 1 percent decrease in the price leads to a decrease in the quantity demanded that is less than 1 percent

2. the price is very sensitive to any shift of the supply curve

3. a 1 percent increase in the price leads to an increase in the quantity supplied that exceeds 1 percent

4. a 1 percent decrease in the price leads to an increase in the quantity demanded that exceeds 1 percent