Question 402 pts

When the percentage change in the quantity demanded is less than the percentage change in price, then price elasticity of demand is

Group of answer choices

inelastic.

elastic.

undefined.

unit elastic.

Flag question: Question 41

Question 412 pts

An increase in the number of substitutes available for a good would cause the demand for that good to

Group of answer choices

become more inelastic.

become more elastic.

Flag question: Question 42

Question 422 pts

Referring to the market graph above, the equilibrium quantity is

Group of answer choices

5

3

4

6

Flag question: Question 43

Question 432 pts

Marginal revenue is calculated as

Group of answer choices

total revenue minus total cost.

total revenue divided by quantity.

the change in total revenue divided by the change in quantity.

the change in total revenue divided by quantity.

Flag question: Question 44

Question 442 pts

In the long-run, firms that operate in perfectly competitive markets should expect to earn economic profits

Group of answer choices

equal to $0 (no economic profits).

less than $0.

greater than $0.

Flag question: Question 45

Question 452 pts

The law of supply states that, other things constant,

Group of answer choices

if the price of a good increases, the quantity supplied increases.

if the price of a good increases, the supply increases.

demand increases when supply increases.

if the price of a good increases, firms buy less of it.

Flag question: Question 46

Question 462 pts

Price elasticity of demand (E) is a measure of the change of _______ in response to a change in ________.

Group of answer choices

income, quantity demanded

quantity supplied, quantity demanded

quantity demanded, income

quantity demanded, price

Flag question: Question 47

Question 472 pts

If the price of the touchscreens used in smartphones increases, the supply of iPhones will likely

Group of answer choices

increase.

be unchanged.

decrease.

Flag question: Question 48

Question 482 pts

Referring to the graph above, the profit-maximizing price is

Group of answer choices

$12

$20

$40

$60

Flag question: Question 49

Question 492 pts

An increase in supply will cause equilibrium price to ___________ and equilibrium quantity to ____________.

Group of answer choices

decrease; decrease

increase; decrease

decrease; increase

increase; increase

Flag question: Question 50

Question 502 pts

Referring to the cost table above, what is the Average Total Cost if quantity produced equals 300 units?

Group of answer choices

$21,000

$70

$10

$80