1)Other things being equal, the price elasticity of demand for a product will be

Question

1)Other things being equal, the price elasticity of demand for a product will be less:
A) if there are many substitutes available.
B) if it is a large part of the consumer's budget.
C) in the long run as compared to the short run.
D) if there are few or no substitutes available.

2)The price elasticity of demand for cabbage has been estimated to be -0.25. If an insect infestation destroys 20 percent of the nation's cabbage crop, how will that affect total expenditures on cabbage, all other things unchanged?

A) total expenditures will rise

B) total expenditures will fall

C) total expenditures will remain unchanged

D) not enough information is given to answer the question

3)A study of the price elasticity of supply for young physicians in the early stages of their careers found it to be about ________ for the group as a whole, but for female physicians in the group it was _________

.A) 0.3; highe

rB) 0.3; lowe

rC) -0.3; highe

rD) -0.3; lower

4)The income elasticity of demand for ground beef has been estimated to be -0.197. If income falls by 20 percent in a period, how will that affect total expenditures on ground beef in that period, all other things unchanged?
A) total expenditures will rise
B) total expenditures will remain unchanged
C) total expenditures will remain fall
D) not enough information is given to answer the question

5)The price elasticity of demand for lettuce has been estimated to be -2.58. If an insect infestation destroys 10 percent of the nation's lettuce crop, how will that affect total expenditures on lettuce, all other things unchanged?

A) total expenditures will remain unchanged

B) total expenditures will fall

C) total expenditures will rise

D) not enough information is given to answer the question

Explanation / Answer

A) if there are many substitutes available.

A) total expenditures will rise

D) -0.3; lower

C) total expenditures will remain fall

B) total expenditures will fall

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