If prices rise by 15% and the quantity supplied rises by 12%, then the price elasticity of supply equals: Question 2 1 pts Applying the midpoint formula, what is the price elasticity of demand if a drop in the price of energy drinks from $4 to $3.50 per can leads to an increase in the quantity demanded from 100 million to 150 million cans? Question 3 1 pts Suppose the price elasticity of demand for noise-canceling headphones is 1.8. The price of noise-canceling headphones rises by 10 percent. What happens to the quantity of headphones demanded? @ The guantity demanded falls. (O The guantity demanded rises. (O The guantity demanded stays the same. Question 4 1 pts Suppose the price elasticity of demand for noise-canceling headphones is 1.8. The price of noise-canceling headphones rises by 10 percent. For a store that sold 100 units of noise-canceling headphones per month before the price change, how many units are sold after the price rise? Suppose the price elasticity of demand for noise-canceling headphones is 1.8. The price of noise-canceling headphones rises by 10 percent. For a store that sold 100 units of noise-canceling headphones per month before the price change, will revenues rise, fall, or remain the same after the price rises? O fall O There is not enough information available to answer the question. (O stay the same O rise Question 6 1 pts Suppose the price elasticity of demand for noise-canceling headphones is 1.8. The price of noise-canceling headphones rises by 10 percent. For a store that sold 100 units of noise-canceling headphones per month for $50 each before the price change, by how much will revenue change after the price rises? Question 7 1 pts Suppose the price elasticity of demand for noise-canceling headphones is 1.8. Based on that information, which of the following statements would best characterize this product? () The demand for noise-canceling headphones is inelastic. (O Noise-canceling headphones are a Giffen good. () Consumers view noise-canceling headphones as a want, rather than a need. () There are no good substitutes for noise-canceling headphones. Table 4.3 in the textbook shows the price elasticity of demand for cigarettes to be 0.4 in high- income countries and 0.8 in low-income countries. If cigarette producers raise their prices by 10%, what will happen to the percent change in guantity demanded in high-income countries? (O It will increase by 4 percent. (O It will decrease by 4 percent. (O It will decrease by 0.4 percent. (O It will not change. (O It will increase by 40 percent. Question 9 1 pts Table 4.3 in the textbook shows the price elasticity of demand for cigarettes to be 0.4 in high- income countries and 0.8 in low-income countries. Would raising the price of cigarettes be more effective at reducing smoking in a high-income country or a low-income country? () An increase in price will be more effective at reducing smoking in low-income countries than in high- income countries. () An increase in price will be eqgually effective at reducing smoking in high-income and low-income countries. () An increase in price will be more effective at reducing smoking in high-income countries than in low- income countries. (O) There is not enough information awvailable to answer the question. Question 10 1 pts Table 4.3 in the textbook shows the price elasticity of demand for cigarettes to be 0.4 in high- income countries and 0.8 in low-income countries. If a government imposes a tax on cigarettes, consumers pay higher prices and the government keeps the extra revenues from the tax. Would a tax on cigarettes that raises prices by 10 be more effective at raising revenue in a high-income country or a low-income country? () high-income country (O low-income country () There is not enough information available to answer the question. () High-income and low-income countries will raise equal revenue from a cigarette tax. The equilibrium market price for a medical exam is $50. To encourage more people to get a check-up, the local government mandates that the price of a check-up cannot be more than $30. Is this a price floor or a price ceiling? (O price floor O price ceiling Question 2 1 pts The equilibrium market price for a medical exam is $50. To encourage more people to get a check-up, the local government mandates that the price of a check-up cannot be more than $30. Will the number of check ups in the market increase, decrease, or stay the same, relative to the market equilibrium? O increase O decrease (O stay the same Question 3 1 pts The equilibrium market price for a medical exam is $50. To encourage more people to get a check-up, the local government mandates that the price of a check-up cannot be more than $30. Will consumer surplus increase or decrease in this market, relative to the consumer surplus at market equilibrium? (O Consumer surplus will increase (O Consumer surplus may increase or decrease. (O Consumer surplus will decrease. The equilibrium market price for a medical exam is $50. To encourage more people to get a check-up, the local government mandates that the price of a check-up cannot be more than $30. Will producer surplus increase or decrease in this market, relative to the producer surplus at market equilibrium? O Producer surplus may increase or decrease. O Producer surplus will decrease. O There is not enough information available to answer the question. O Producer surplus will increase. Question 5 1 pt The equilibrium market price for a medical exam is $50. To encourage more people to get a check-up, the local government mandates that the price of a check-up cannot be more than $30. Will social welfare increase or decrease in this market, relative to social welfare at market equilibrium? (O Social welfare will decrease. O Social welfare may increase or decrease. O There is not enough information available to answer the question. (O Social welfare will increase