The table lists the characteristics of three goods. Good ________ is the most inelastic, and Good ________ is the most elastic.

Group of answer choices

X; Y

Z; Y

X; Z

Y; X

10. The price of wheat increases, but few people cut back on their consumption of bread because _____.

Group of answer choices

A. the price of bread is a small portion of the budget, and thus the demand for bread is inelastic.

B. the price of bread is a large portion of the budget, and thus the demand for bread is elastic.

C. a change in the price of wheat does not affect the price of bread.

D. None of the answers is correct.

7. Which of the following is not a key factor affecting the magnitude of the own price elasticity (OPED) of a good?

Group of answer choices

A. available substitutes

B. supply of the good

C. time

D. expenditure share

7B. If the supply of a product is inelastic, a large price increase will:

A. not have an effect on the quantity supplied.

B. only bring about a small increase in quantity supplied.

C. cause the supply curve to increase by a nontrivial amount.

D. cause a modest decrease in supply.

7C. The income elasticity of demand for eggs has been estimated to be 0.57. If income grows by 5% in a period, how will that affect demand for eggs in that period, all other things unchanged?

Group of answer choices

A. Demand will increase by more than 5.7%.

B. Demand will increase by about 2.9%.

C. Demand will decrease by more than 5.7%.

D. Demand will decrease by about 2.9%.

2A. Marge tutors English students. If she raises rates, her revenues increase. Brad tutors biology students. If he lowers rates, his revenues increase. Which of the following is TRUE?

Group of answer choices

A. Marge's demand is elastic, and Brad's demand is inelastic.

B. Marge's demand is inelastic, and Brad's demand is elastic.

C. Marge's demand is elastic, and Brad's demand is elastic.

D. Marge's demand is inelastic, and Brad's demand is inelastic.

Which of the following pairs of goods are most likely to have a cross-price elasticity of demand that is greater than zero?

Group of answer choices

A. shoes and shoelaces

B. apples and bananas

C. pizza and soda

D. gasoline and cars

Consumers are particularly price-responsive when ____

Group of answer choices

A. it is difficult to substitute across suppliers and prices are high.

B. prices are low and they have little time to change their consumption patterns.

C. a product has many substitutes and they have a long time to adjust their consumption.

D. there are few substitute goods available for a product, and they have a short time horizon to adjust their consumption.

Suppose the government imposes a $4 excise tax on Good X. If the demand for Good X is perfectly elastic and the supply curve is elastic, then the price of Good X will ____

Group of answer choices

A. increase by more than $4.

B. increase by exactly $4.

C. increase, but by less than $4.

D. remain constant.

If demand is elastic, a price ________ causes ________ in total revenue.

Group of answer choices

A. decrease; a decrease

B. increase; an increase

C. decrease; an increase

D. increase; no change

Suppose the price elasticity of demand for yachts equals -4.04, while the price elasticity of supply for yachts equals 0.22. If Congress reinstates a luxury tax on yachts, who will pay more of the tax?

Group of answer choices

A. Yacht builders will pay more.

B. Yacht buyers will pay more.

C. Yacht builders and buyers will pay equally.

D. It's impossible to tell without additional information.

Prior to any taxes, suppose the equilibrium price of gasoline is $3 per gallon. A $1 tax is levied on each gallon of gas that is supplied. As a result, the price of gasoline rises to $3.75 per gallon. The revenue raised by the $1 tax is ____

Group of answer choices

A. $0.25 paid by consumers, $0.75 paid by producers.

B. $0.50 paid by consumers, $0.50 paid by producers.

C. $1.00 paid by producers, $0 paid by consumers.

D. $0.75 paid by consumers, $0.25 paid by producers.

Considering demand only, a tax on which of the following goods would result in a larger deadweight loss?

Group of answer choices

A. gasoline

B. medicine

C. restaurant meals

D. tobacco

How does the price elasticity of supply for Keith Haring paintings compare with the price elasticity of supply for Damien Hirst paintings? (Haring is deceased, Hirst is not.)

Group of answer choices

A. Haring paintings likely have a higher price elasticity of supply.

B. Haring paintings likely have a lower price elasticity of supply.

C. Haring paintings and Hirst paintings likely have the same price elasticity of supply.

D. Haring paintings and Hirst paintings likely differ in price elasticity of supply in an indeterminate direction.