starting at 14
D. None of the ove D.2.8672 tons. E. None of the above 16. Using the information in question 14, what is the income elasticity of demand for the firm's product? A. 0.1730 8.0.411 C. 0.0411 D. 0.141. E. None of the above 13. The estimated price elasticity of demand for movies is 3.67. A 10% increase in its price causes its quantity demanded to and total revenue to A. decrease by 3.67% increase B. decrease by 36.7%:ncrease C. decrease by 3.67 decrease. D. decrease by 36.7% decrease E none of the above-decrease by.167 20. If the demand for a good is inelastic with respect to the price, then A. a 10% increase in price will cause total revenue to de crease B. a 10% increase in price will use total revenue to in Crease. ca 10% increase in price will cause total revenue to be the Same d. none of the above. 17. Using the information in question W14, what is the cross elasticity of demand between its product and its rival's prod A. 01730 B. 0411 C. 0.0411 D. 141 E. None of the above 14. After a careful statistical analysis, the Chiester Company concludes that the demand function for its product is Q 150-2P0.5P00 where is the quantity demanded of its product, P is the price of its product, P, is the price of its rival's product, and! s per capita disposable income in dollars At present, P = $15, P, = $18, and I $3,000. What is the price elasticity of demand for the firm's product? A-0.1730 3.-0.1570 C.-0.1370 D. -0.1630 E. None of the above 18. Using the information in question 114, what is the implicit assumption regarding the population in the market? A. Increasing Decrea C. Constant. D. None of the above. 15. Using the information in question #14, calculate the change in total revenue if the firm r es the price of its prod uct from $15 to $20 A. an increase of $95. 3. a decrease of SR95. C. an increase of $219 D. a decrease of $219 E. None of the above 19. The Corporation's executive vice president circu Latesamemo to the firm's top management in which hear gues for a reduction in the price of the firm's product. He says that such a price cut will increase the firm's revenue The firm's marketing manager responds with a memo point ing out that the price elasticity of demand for the firm's product is -0.5. How does such a price cut affect the firm's revenue? Alt decreases the firm's total revenue. it increases the firm's total revenue. C. It has no effect on the firm's total revenue. D.2.8672 tons. E. None of the above. 16. Using the information in question #14, what is the incom elasticity of demand for the firm's product? A. 0.1730. B. 0.411. C. 0.0411. D. 0.141. E. None of the above. 13. The estimated price elasticity of demand for movies is 3.67. A 10% increase in its price causes its quantity demanded to ......... and total revenue to........ A. decrease by 3.67%; increase. B. decrease by 36.7%; increase. C. decrease by 3.67%; decrease D. decrease by 36.7%; decrease. E. none of the above. - decrease by.367 17. Using the information in question #14, what is the cros elasticity of demand between its product and its rival's prod uct? A. 0.1730. B. 0.411. C. 0.0411 D. 0.141. E. None of the above. 14. After a careful statistical analysis, the Chidester Company concludes that the demand function for its product is Q =150-2P+0.5P, + 0.031, where Q is the quantity demanded of its product, P is the price of its product, P, is the price of its rival's product, and/ is per capita disposable income (in dollars). At present, P = $15, P, = $18, and / = $3,000. What is the price elasticity of demand for the firm's product? A. - 0.1730. B.-0.1570 C. -0.1370 D.-0.1630. E. None of the above. 18. Using the information in question #14, what is the implicit assumption regarding the population in the market? A. Increasing B. Decreasing C. Constant. D. None of the above. 15. Using the information in question #14, calculate the change in total revenue if the firm raises the price of its prod. uct from $15 to $20 A. an increase of $895. B. a decrease of $895. C. an increase of $219. D. a decrease of $219. E. None of the above. 19. The Haas Corporation's executive vice president circu- lates a memo to the firm's top management in which he ar- gues for a reduction in the price of the firm's product. He says that such a price cut will increase the firm's revenue. The firm's marketing manager responds with a memo point ing out that the price elasticity of demand for the firm's product is -0.5. How does such a price cut affect the firm's revenue? A. It decreases the firm's total revenue. B. It increases the firm's total revenue. C. It has no effect on the firm's total revenue
