https://mcokcblackboard.com/webapps/assessment/take/! (110% dla Search QUES TION

ID: 1149605 • Letter: H

Question

https://mcokcblackboard.com/webapps/assessment/take/! (110% dla Search QUES TION 27 If the resources necessary for producing a product will become more abundant O A the supply of that product will increase. O B, the product will experience a severe shortage. O C. the product will become free OD. the supply of that product will decrease QUESTION 28 If income of buyers increases demand for O A some products will increase and for other products will decrease. O B. all products will increase uniformly O C all products wiltl decrease uniformly. o D. all products will remain the same QUESTION 29 On Graph C Antonio's raises the price of all of the botted beers from $3 to $4 and keeps the prce of the shall vegetarian pizza at $10 Antonio's realizes that after the increase in the price of bottled beers the number of smal vegetanian pizzas sold dropped from 200 to 80 What is the cross elasticity of demand for pizza and beer? O A-024 O B +0.33 O C -300 OD, +800 Click Save ond Subrit to scave md subret. Chiok Sove all Ansuers to sne oll coacera.

Explanation / Answer

Q. 27
Option A. When the input becomes available at lesser price, the supply of the product increases

Q. 28
Option A. Because normal good will have increase in demand whereas an inferior good the demand would decrease

Q. 29
Option C. Formula=%change in q of pizza/%change in price of beer = (q2-q1)/average (q2+q1)/(p2-p1)/average(p2+p1)

Bottled Beer

% change In P

Veg Pizza

% change In Q

Cross PED

Price

Quantity

200

0.29

10.00

-0.86

-3

Q.30

Option D

2.00

260

520

1.00

285

Q.31

Option B. Because cross price elasticity is negative for complements

Q.32
Option A. Since it has no substitutes consumers would not have other options to replace

Q.33
Option A. Since the consumption has increased with increase in income it is income elastic

Q. 34

Option C