100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
Managerial Economics & Business Strategy Michael Baye 9th Edition- Test Bank CA$25.91   Add to cart
Quickly navigate to
Preview
  2.  
  3. Managerial Economics & Business Strategy
  4.  
  5. Managerial Economics & Business Strategy

Exam (elaborations)

Managerial Economics & Business Strategy Michael Baye 9th Edition- Test Bank

1 review
 237 views  6 purchases
  • Course
  • Managerial Economics & Business Strategy
  • Institution
  • Managerial Economics & Business Strategy
  • Book
  • Managerial Economics & Business Strategy

Managerial Economics & Business Strategy Michael Baye 9th Edition- Test Bank Managerial Economics & Business Strategy Michael Baye 9th Edition- Test BankAssume that the price elasticity of demand is −2 for a certain firm’s product. If the firm raises price, the firm’s managers can expect...

[Show more]

Preview 4 out of 88  pages

Document information

  • June 29, 2023
  • 88
  • 2022/2023
  • Exam (elaborations)
  • Questions & answers

Subjects

  • managerial economics amp business strategy
  • managerial economics amp business strategy michael b

Connected book

book image

Book Title:

Author(s):

  • Edition:
  • ISBN:
  • Edition:

More summaries for

  • chapter 7-nature of industry
  • chapter 6- Organization of the firm
  • chapter5-Production Process and Cost
All for this textbook (8)

Written for

  • Managerial Economics & Business Strategy
  • Managerial Economics & Business Strategy

1  review

review-writer-avatar

By: falehfs • 1 year ago

Seller

avatar-seller
Wiseman

Reviews received

Content preview

Managerial Economics & Business Strategy Michael Baye 9th Edition- Test Bank
Managerial Economics & Business Strategy Michael Baye 9th Edition- Test Bank
Chapter 03
Quantitative Demand Analysis
Multiple Choice Questions
1.Assume that the price elasticity of demand is −2 for a certain firm’s product. If
the firm raises price, the firm’s managers can expect total revenue to:
A.decrease.
B.increase.
C.remain constant.
D.either increase or remain constant, depending upon the size of the price increase.
Answer: A
Learning Objective: 03-02
Topic: Own Price Elasticity of Demand Blooms: Remember
AACSB: Knowledge Application Difficulty: 01 Easy
2.A price elasticity of zero corresponds to a demand curve that is:
A.horizontal.
B.downward sloping with a slope always equal to 1.
C.vertical.
D. either vertical or horizontal. Answer: C
Learning Objective: 03-02
Topic: Own Price Elasticity of Demand Blooms: Understand
AACSB: Knowledge Application Difficulty: 02 Medium
3.As we move down along a linear demand curve, the price elasticity of demand becomes more:
A.elastic. B.inelastic.
C. log-linear.
D. variable.
Answer: B
Learning Objective: 03-02
Topic: Own Price Elasticity of Demand Blooms: Understand
AACSB: Knowledge Application Difficulty: 02 Medium
4.If the demand for a product is Q xd = 10 − lnPx, then product x is:
A.elastic.
B.inelastic.
C.unitary elastic.
D.Cannot be determined without more information.
Answer: C
Learning Objective: 03-05
Topic: Obtaining Elasticities From Demand Functions Blooms: Remember
AACSB: Knowledge Application Difficulty: 01 Easy 5.The demand for good X has been estimated by Q xd = 12 − 3Px + 4Py. Suppose
that good X sells at $2 per unit and good Y sells for $1 per unit. Calculate the
own price elasticity.
A. −0.2
B. −0.3
C. −0.5
D.−0.6
Answer: D
Learning Objective: 03-05
Topic: Obtaining Elasticities From Demand Functions Blooms: Apply
AACSB: Analytical Thinking Difficulty: 01 Easy
6.The own price elasticity of demand for apples is −1.2. If the price of apples falls
by 5 percent, what will happen to the quantity of apples demanded?
A.It will increase 5 percent.
B.It will fall 4.3 percent.
C.It will increase 4.2 percent.
D.It will increase 6 percent.
Answer: D
Learning Objective: 03-01
Topic: Own Price Elasticity of Demand Blooms: Apply
AACSB: Analytical Thinking Difficulty: 02 Medium
7.If apples have an ownprice elasticity of −1.2 we know the demand is:
A.unitary.
B.indeterminate.
C.elastic.
D. inelastic.
Answer: C
Learning Objective: 03-01 Topic: Own Price Elasticity of Demand Blooms: Remember
AACSB: Knowledge Application Difficulty: 01 Easy
8.If quantity demanded for sneakers falls by 10 percent when price increases 25
percent, we know that the absolute value of the own price elasticity of sneakers is:
A. 2.5.
B.0.4.
C. 2.0.
D. 0.27.
Answer: B
Learning Objective: 03-01
Topic: Own Price Elasticity of Demand Blooms: Apply
AACSB: Analytical Thinking Difficulty: 02 Medium
9.The quantity consumed of a good is relatively unresponsive to changes in price whenever demand is:
A.elastic.
B.unitary.
C.falling. D.inelastic.
Answer: D
Learning Objective: 03-01
Topic: Own Price Elasticity of Demand Blooms: Remember
AACSB: Knowledge Application Difficulty: 01 Easy

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller Wiseman. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for CA$25.91. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

67474 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
CA$25.91  6x  sold
  • (1)
  Add to cart