31.
Increases in demand are graphed as rightward shifts of the demand curve. Similarly, increases in supply are graphed as rightward shifts of the supply curve.
Group of answer choices
True
False
32.
Assume the income elasticity of a car is 0.75. If consumer income decreases by 5%, the quantity demanded would _______ by _______.
Group of answer choices
increase 5.75%
increase, 3.75%
increase, 4.25%
increase, 1.33%
decrease, 3.75%
33.
Which of the following will result in a definite increase 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 an increase in supply
a decrease in demand and a decrease in supply
an increase in demand and an increase in supply
an increase in demand and a decrease in supply
34.
If there is a simultaneous increase in demand and decrease in supply, it is not possible for the equilibrium price to decrease.
Group of answer choices
True
False
35.
Which of the following is correct regarding indifference curves and budget lines?
Group of answer choices
A decrease in the consumer’s budget causes an indifference curve to shift left.
The actual combination chosen by a consumer is found where an indifference curve crosses over the budget line.
An increase in the consumer’s budget causes the budget line to rotate counter-clockwise.
None of the choices listed is correct.
Along an indifference curve the consumer’s marginal utility is constant.
36.
When a hair salon charged $20 for a haircut it served 300 customers in a day. When it increased the price to $24, it served 240 customers in a day. What is the price elasticity of demand (in absolute value)?
Group of answer choices
1.22
1.00
0.82
1.34
1.65
37.
The production possibility frontiers for two different national economies are drawn in the same graph and are exactly positioned on top of each other. Economy A tends to emphasize production of consumer goods. Economy B tends to emphasize production of capital goods. How would the two frontiers compare after a 10-year passage of time?
Group of answer choices
The PPF of Economy B would be farther out from the origin than the PPF of Economy A.
The PPFs of the two economies would be farther out from the origin but still on top of each other.
The PPFs of the two economies would be in their original position.
The PPF of Economy A would be farther out from the origin than the PPF of Economy B.
38.
A pizza place increased the selling price on its pizza by 10% and noticed a 13% decrease in the number of pizzas it sold. The demand for pizzas in this case is _______.
Group of answer choices
inelastic
perfectly inelastic
elastic
unit elastic
39.
When a firm has diminishing marginal returns its marginal cost decreases.
Group of answer choices
True
False
40.
Which of the following would cause a definite leftward shift of the supply curve?
Group of answer choices
an increase in taxes and an increase in the number of firms
an increase in the price of a complement in production and a decrease in the cost of an input
an increase in the price of a substitute in production and a decrease in productivity
an increase in the cost of an input and an expectation by firms of a lower price
Ans 31- True
An increase in the change in supply shifts the supply curve to the right, while a decrease in the change in supply shifts the supply curve left. Similarly , an increase in demand shifts the demand curve to the right
Ans 32 - decrease ; 3.75 %
Income elasticity = % change in quantity demanded / % change in income 0.75× 5% = % change in quantity demanded % change in quantity demanded = 3.75%
Ans 33- If both demand and supply increase, there will be an increase in the equilibrium output, but the effect on price cannot be determined.
Ans 34- False
Get Answers For Free
Most questions answered within 1 hours.