This is the 3rd time I\'ve had to post all these questions. Can someone please h
ID: 1206388 • Letter: T
Question
This is the 3rd time I've had to post all these questions. Can someone please help and just give the answers.
1) All else being equal, the more imprtant an item is in buyers' budgets, the more elastic is demand for the good. (TRUE/FALSE)
2) If the demand curve for a good is a steep, straight line, then the demand for the good is inelastic at every point along that demand curve. (TRUE/FALSE)
3)If the demand for illegal drugs is inelastic, then government efforts to reduce the supply of illegal drugs are likely to cause an increase in total expenditure on them. (TRUE/FALSE)
4) If the demand for mass transit in a city is inelastic, then raising fares will increase mass transit revenue. (TRUE/FALSE)
5)The cross-price elasticity of demand between Levi's blue jeans and Wrangler's blue jeans is most likely positive (TRUE/FALSE)
6) Perfectly inelastic demand occurs when the demand curve is horizontal. (TRUE/FALSE)
7) Among the reasons that farmers' incomes are unstable is _____
A) The supply curve for food can shift dramatically rightward or leftward from year to year.
B) The demand for food is elastic
C) The income elasticity for food is very high
D) All of these
E) None of these
8) If the (absolute value of) the price elasticity of demand for a good is greater than one, then demand for the good is _____
A) Elastic
B) Inelastic
C) Inferior
D) Normal
E) Paranormal
9) As we move leftward along a straight-line demand curve, the (absolute value of the) price elasticity of demand ____
A) Grows smaller
B) Remains constant at zero
C) Remains constant at a value of one
D) Remains constant and equal to the (absolute value of the) slope of the demand curve
E) Grows larger
10) If a good is normal, we know that______
A) income elasticity is positive
B) The good's price elasticity of demand is positive
C) Demand for the good is elastic
D) Demand for the good is inelastic
E) Income elasticity is negative
11) When the price of a good rises by 10%, and nothing else changes, the quantity of the good demanded falls by 5%. The price elasticity of demand fort this good is_____
A) -0.5%
B) -5%
C) -5.0%
D) -2.0%
E) 2.0%
12) If the price elasticity of demand for a good is negative, we know that the good _____.
A) Obey's the law of demand
B) Is normal
C) Is inferior
D) Violates the law of demand
E) is inelastically demanded
13) Which of the following would you expect to have the greatest (in absolute value) price elasticity of demand?
A) Clothing
B) Pants
C) Blue jeans
D) Levi's Blue jeans
E) All of these answers would have approximately the same price elasticity of demand.
14) The price elasticity of demand for a good is -2.0 When the proce of this good rises, what occurs?
A) Quantity demanded will rise as well
B) The income of those who buy the good will increase
C) Total expenditure on this good will fall.
D) All of these
E) All of these answers would have approximately the same price elasticity of demand.
Explanation / Answer
Question
Answer
1) All else being equal, the more important an item is in buyers' budgets, the more elastic is demand for the good. (TRUE/FALSE)
1. FALSE
(If the priority fo r the item is high on the Budget, it means that the consumer will buy the item not matter what the price is. Elasticity is near zero. )
2) If the demand curve for a good is a steep, straight line, then the demand for the good is inelastic at every point along that demand curve. (TRUE/FALSE)
2. TRUE.
( If the Demand curve is a vertical straight line, then Elasticity is zero at every point along the line)
3)If the demand for illegal drugs is inelastic, then government efforts to reduce the supply of illegal drugs are likely to cause an increase in total expenditure on them. (TRUE/FALSE)
3. TRUE
If demand for drugs is inelastic, government efforts will not succeed in controlling the supply
4) If the demand for mass transit in a city is inelastic, then raising fares will increase mass transit revenue. (TRUE/FALSE)
4. TRUE
Quantity demand demanded will into change with increases in prices. Increases in price bring in more revenue.
5)The cross-price elasticity of demand between Levi's blue jeans and Wrangler's blue jeans is most likely positive (TRUE/FALSE)
5. TRUE
They are perfect substitutes
6) Perfectly inelastic demand occurs when the demand curve is horizontal. (TRUE/FALSE)
6. FALSE
Horizontal Demand curve implies perfect elasticity
7) Among the reasons that farmers' incomes are unstable is _____
A) The supply curve for food can shift dramatically rightward or leftward from year to year.
B) The demand for food is elastic
C) The income elasticity for food is very high
D) All of these
E) None of these
7.
A. Since output of a farm depends on uncertain factors like hail storms, pests etc, food supply can vary considerably from year to year.
8) If the (absolute value of) the price elasticity of demand for a good is greater than one, then demand for the good is _____
A) Elastic
B) Inelastic
C) Inferior
D) Normal
E) Paranormal
8.
A. it is the definition of elasticity
9) As we move leftward along a straight-line demand curve, the (absolute value of the) price
elasticity of demand ____
A) Grows smaller
B) Remains constant at zero
C) Remains constant at a value of one
D) Remains constant and equal to the (absolute value of the) slope of the demand curve
E) Grows larger
E. Grows larger, because of the operation of the law of increasing marginal utility,
10) If a good is normal, we know that______
A) income elasticity is positive
B) The good's price elasticity of demand is positive
C) Demand for the good is elastic
D) Demand for the good is inelastic
E) Income elasticity is negative
11) When the price of a good rises by 10%, and nothing else changes, the quantity of the good demanded falls by 5%. The price elasticity of demand fort this good is_____
A) -0.5%
B) -5%
C) -5.0%
D) -2.0%
10.
A. it is the definition of normal good
E) 2.0%
12) If the price elasticity of demand for a good is negative, we know that the good _____.
A) Obey's the law of demand
B) Is normal
C) Is inferior
D) Violates the law of demand
E) is inelastically demanded
12.
A. The demand curve is a negative relationship
13) Which of the following would you expect to have the greatest (in absolute value) price elasticity of demand?
A) Clothing
B) Pants
C) Blue jeans
D) Levi's Blue jeans
E) All of these answers would have approximately the same price elasticity of demand.
13.
D. any other pair of jeans is a perfect substitute for Levi’s
14) The price elasticity of demand for a good is -2.0 When the proce of this good rises, what occurs?
A) Quantity demanded will rise as well
B) The income of those who buy the good will increase
C) Total expenditure on this good will fall.
D) All of these
E) All of these answers would have approximately the same price elasticity of demand.
14.
C. Total income falls, because quantity bought will fall.
Question
Answer
1) All else being equal, the more important an item is in buyers' budgets, the more elastic is demand for the good. (TRUE/FALSE)
1. FALSE
(If the priority fo r the item is high on the Budget, it means that the consumer will buy the item not matter what the price is. Elasticity is near zero. )
2) If the demand curve for a good is a steep, straight line, then the demand for the good is inelastic at every point along that demand curve. (TRUE/FALSE)
2. TRUE.
( If the Demand curve is a vertical straight line, then Elasticity is zero at every point along the line)
3)If the demand for illegal drugs is inelastic, then government efforts to reduce the supply of illegal drugs are likely to cause an increase in total expenditure on them. (TRUE/FALSE)
3. TRUE
If demand for drugs is inelastic, government efforts will not succeed in controlling the supply
4) If the demand for mass transit in a city is inelastic, then raising fares will increase mass transit revenue. (TRUE/FALSE)
4. TRUE
Quantity demand demanded will into change with increases in prices. Increases in price bring in more revenue.
5)The cross-price elasticity of demand between Levi's blue jeans and Wrangler's blue jeans is most likely positive (TRUE/FALSE)
5. TRUE
They are perfect substitutes
6) Perfectly inelastic demand occurs when the demand curve is horizontal. (TRUE/FALSE)
6. FALSE
Horizontal Demand curve implies perfect elasticity
7) Among the reasons that farmers' incomes are unstable is _____
A) The supply curve for food can shift dramatically rightward or leftward from year to year.
B) The demand for food is elastic
C) The income elasticity for food is very high
D) All of these
E) None of these
7.
A. Since output of a farm depends on uncertain factors like hail storms, pests etc, food supply can vary considerably from year to year.
8) If the (absolute value of) the price elasticity of demand for a good is greater than one, then demand for the good is _____
A) Elastic
B) Inelastic
C) Inferior
D) Normal
E) Paranormal
8.
A. it is the definition of elasticity
9) As we move leftward along a straight-line demand curve, the (absolute value of the) price
elasticity of demand ____
A) Grows smaller
B) Remains constant at zero
C) Remains constant at a value of one
D) Remains constant and equal to the (absolute value of the) slope of the demand curve
E) Grows larger
E. Grows larger, because of the operation of the law of increasing marginal utility,
10) If a good is normal, we know that______
A) income elasticity is positive
B) The good's price elasticity of demand is positive
C) Demand for the good is elastic
D) Demand for the good is inelastic
E) Income elasticity is negative
11) When the price of a good rises by 10%, and nothing else changes, the quantity of the good demanded falls by 5%. The price elasticity of demand fort this good is_____
A) -0.5%
B) -5%
C) -5.0%
D) -2.0%
10.
A. it is the definition of normal good
E) 2.0%
12) If the price elasticity of demand for a good is negative, we know that the good _____.
A) Obey's the law of demand
B) Is normal
C) Is inferior
D) Violates the law of demand
E) is inelastically demanded
12.
A. The demand curve is a negative relationship
13) Which of the following would you expect to have the greatest (in absolute value) price elasticity of demand?
A) Clothing
B) Pants
C) Blue jeans
D) Levi's Blue jeans
E) All of these answers would have approximately the same price elasticity of demand.
13.
D. any other pair of jeans is a perfect substitute for Levi’s
14) The price elasticity of demand for a good is -2.0 When the proce of this good rises, what occurs?
A) Quantity demanded will rise as well
B) The income of those who buy the good will increase
C) Total expenditure on this good will fall.
D) All of these
E) All of these answers would have approximately the same price elasticity of demand.
14.
C. Total income falls, because quantity bought will fall.
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