Question

In Market A, a 4 percent increase in price reduces the quantity demanded by 2 percent. In Market B, a 3 percent increase in price reduces the quantity demanded by 4 percent. The demand in Market A and Market B are considered______ and _______, respectively.

a) unit price-elastic; perfectly price-inelastic.

b) price-elastic; price-inelastic.

c) perfectly price-elastic; unit price-elastic.

d) price-inelastic; price-elastic.

Answer #1

OPTION D

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QUESTION 21
If the percentage change in quantity demanded is greater than
the percentage change in price for good A, then the demand for good
A is
a.
inelastic.
b.
unit elastic.
c.
elastic.
d.
perfectly inelastic.
QUESTION 22
If the percentage change in quantity demanded is less than the
percentage change in price for good B, then the demand for good B
is
a.
inelastic.
b.
unit elastic.
c.
elastic.
d.
perfectly elastic.
QUESTION 23
If the percentage change...

8.
When the price increases by 30 percent and the quantity demanded
drops by 30 percent, the price elasticity of demand is
unitary elastic.
elastic.
perfectly inelastic.
inelastic.
perfectly inelastic.
9.
If the cross-price elasticity of demand between Good A and Good
B is 2 and the percentage change in price of Good A is 5 percent,
what is the percentage change in quantity demanded of Good B?
-3 percent
1.50 percent
10 percent
3 percent
-1.25 percent

A price change causes the quantity demanded for a good to
increase by 20 percent and the total revenue of that good decreases
by 15 percent. What can you say about the price elasticity of
demand at this point.
It's elastic
It's inelastic
It's unitary elastic
It's perfectly elastic

A price change causes the quantity demanded of a good to
increase by 2 percent, while the total revenue of that good
decreased by 8 percent. Over this price range is the demand for
this good elastic, inelastic or unitary elastic? Could anyone
explain, please?

16. At a price of $4, quantity demanded is 100; and at a price
of $6, quantity demanded is 120. Using the midpoint formula, the
price elasticity of demand is ________ and demand is ________.
A) 0.1; inelastic
B) 0.45; inelastic
C) -2.2; elastic
D) -10; elastic

A price change causes the quantity demanded of a good to
increase by 20 percent, while the total revenue of that good
increases by 15 percent. Is the demand curve elastic or inelastic?
Explain.

37)
Price per Constant-
Quality of X
Quantity of
X Demanded
per Time Period
Quantity of
X Supplied
per Time Period
$10
0
150
8
20
120
6
40
90
4
60
60
2
80
30
0
100
0
Based on the table above, if other influences remain constant and
the market is free to adjust, a stable equilibrium price will be
established at
Select one:
a. $4.
b. $6.
c. $8.
d. $2.
A shortage will occur when
Select...

When the price of good "X" increases 20 percent (+20%), Harry
decreases his quantity demanded of "X" by 25 percent while Meghan
decreases her quantity demanded of "X" by 15 percent. Harry's
demand for good "X" is (relatively inelastic / unitary elastic /
relatively elastic) and Meghan's demand for good "X" is (relatively
inelastic / unitary elastic / relatively elastic).
A. Relatively inelastic; relatively
inelastic.
B. Relatively inelastic; relatively
elastic.
C. Unitary elastic; relatively
elastic.
D. Relatively elastic; relatively
elastic.

A perfectly inelastic demand curve indicates that
a.
price has no effect on the quantity demanded.
b.
for a given percent change in price, the quantity demanded rises
by the same percentage.
c.
the percent change in price is less than the percent change in
quantity demanded.
d.
a producer can sell as many units as desired at the market price
but no units above the market price.

A 10 percent increase in the price of soda leads to a 20 percent
increase in the quantity of iced tea demanded. It appears that:
a) elasticity of demand for soda 0.5 and is inelastic.
b) elasticity of demand for iced tea is 2 and is elastic.
c) cross-price elasticity of demand for soda is -0.5.
d) cross-price elasticity of demand for iced tea is 2.

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