Question 16

In which of the following cases will a firm's total revenue increase?There is more than one correct answer to this question.You must mark all of the correct answers to receive full credit for this question.

Group of answer choices

price increases and demand is perfectly inelastic

price decreases and demand is elastic

price increases and demand is elastic

price decreases and demand is inelastic

price increases and demand is inelastic

Question 17

FuboTV and hulu are two streaming services companies that many consumers are using to eliminate expensive cable-TV services.They offer similar benefits to customers.If the price of the FuboTV service increases, this will cause an increase in the _______ for the hulu brand streaming service which would be graphed as _______.

Group of answer choices

quantity demanded, movement up/left along its demand curve

demand, movement up/left along its demand curve

demand, rightward shift of its demand curve

quantity demanded, leftward shift of its demand curve

Question 18

A price ceiling causes the actual number of units of a good bought and sold to decrease compared to the equilibrium quantity.A price floor also causes the actual number of units bought and sold to decrease compared to the equilibrium quantity.

Group of answer choices

True

False

Question 19

If there is a simultaneous increase in demand and decrease in supply, which of the followingmustoccur?

Group of answer choices

The equilibrium quantity decreases.

The equilibrium price increases.

The equilibrium quantity increases.

The equilibrium price decreases.

Question 20

Which of the following will result in a definite decrease in equilibrium quantity but an uncertainty regarding any change that might occur in the equilibrium price?

Group of answer choices

a decrease in demand and a decrease in supply

a decrease in demand and an increase in supply

an increase in demand and an increase in supply

an increase in demand and a decrease in supply

Question 21

The cross-price elasticity of demand between two goods is 1.01.This tells us these two goods are _______ and _______.

Group of answer choices

complements, used together

substitutes, used in place of each other

substitutes, used together

complements, used in place of each other

Question 22

It is assumed in economics that firms want to maximize _______, and this assumption provides the foundation for the _______.

Group of answer choices

total revenue, law of supply

total revenue, law of demand

total profit, principle of increasing marginal opportunity cost

total profit, law of supply

Question 23

Assume there is an increase in the supply of Good X.Which of the following statements is correct?

Group of answer choices

You will know for certain what happens to the equilibrium quantity, but there will be uncertainty regarding the equilibrium price.

You will know for certain what happens to the equilibrium price, but there will be uncertainty regarding the equilibrium quantity.

You will not know anything for certain regarding the equilibrium quantity or equilibrium price.

You will know for certain what happens to the equilibrium quantity and the equilibrium price.

Question 24

When a firm has increasing marginal returns its marginal cost decreases.

Group of answer choices

True

False

Question 25

Assume that you manage a car wash, and you have previously calculated the price elasticity of demand to be 1.6 (in absolute value).To draw in more customers, you decide todecreaseyour price by 5%.Based on this information, you would estimate the quantity demanded will _______ by _______.

Group of answer choices

increase, 8.0%

increase, 6.6%

decrease, 3.4%

increase, 5.0%

decrease, 6.6%

Question 26

Below the equilibrium price, there is a _______ and an automatic pressure for the price to _______.

Group of answer choices

surplus, decrease.

shortage, decrease

shortage, increase

surplus, increase

Question 27

Which of the following is the most likely value for the cross-price elasticity of demand between hamburger meat and hamburger buns?

Group of answer choices

-2.90

0.16

0.00

3.67

1.00

Question 28

The law of demand states that if everything else is held constant, as the price of a good or service _______, consumers will purchase _______ quantities.

Group of answer choices

decreases, decreased

increases, increased

remains constant, increased

increases, decreased

Question 29

Assume the income elasticity of a car is 1.80.If consumer income decreases by 5%, the quantity demanded would _______ by _______.

Group of answer choices

decrease, 6.8%

increase 7.0%

decrease, 2.8%

decrease, 9.0%

decrease, 3.2%