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
Econ 402 Exam #2 || with 100% Errorless Answers. CA$15.82   Add to cart
Quickly navigate to
Preview
  2.  
  3. Econ 402
  4.  
  5. Econ 402

Exam (elaborations)

Econ 402 Exam #2 || with 100% Errorless Answers.
 10 views  0 purchase
  • Course
  • Econ 402
  • Institution
  • Econ 402

If the price of good X rises and the demand for good X is elastic, then the percentage __________ in quantity demanded is __________ the percentage rise in price, and total revenue __________. -fall; greater than; falls -fall; less than; falls -rise; greater than; falls -fall; greater than; ris...

[Show more]

Preview 2 out of 7  pages

Document information

  • August 16, 2024
  • 7
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers

Subjects

  • if the price of good x rises and the demand for go

Written for

  • Econ 402
  • Econ 402

Seller

avatar-seller
FullyFocus

Reviews received

Content preview

Econ 402 Exam #2 || with 100% Errorless Answers.
If the price of good X rises and the demand for good X is elastic, then the percentage
__________ in quantity demanded is __________ the percentage rise in price, and total revenue
__________.
-fall; greater than; falls
-fall; less than; falls
-rise; greater than; falls
-fall; greater than; rises correct answers fall; greater than; falls

Suppose that when the price of a good rises from $12 to $14, the quantity demanded of that good
falls from 220 units to 180 units. What is the approximate price elasticity of demand between
these two prices?
-1.73
-.27
-.77
-1.3 correct answers 1.3

If the percentage change in quantity demanded is less than the percentage change in price for
good Y, then the demand for good Y is
-unit elastic
-perfectly elastic
-inelastic
-elastic correct answers inelastic

The fewer substitutes for a good,
-the lower its income elasticity of demand.
-the lower its price elasticity of demand.
-the higher its price elasticity of demand
-the higher its income elasticity of demand. correct answers the lower its price elasticity of
demand.

Which of the following statements is false?
-Ham has a higher price elasticity of demand than meat.
-Soap has a higher price elasticity of demand than Ivory brand soap.
-Carrots have a higher price elasticity of demand than vegetables.
-Peaches have a higher price elasticity of demand than fruit. correct answers Soap has a higher
price elasticity of demand than Ivory brand soap.

The shorter the period of time consumers have to adjust to price changes, the __________ the
__________ elasticity of demand.
-lower; price
-higher; price
-higher; income
-lower; income correct answers lower; price

, Cross elasticity of demand measures the responsiveness of changes in the quantity __________
of one good to changes in __________.
-demanded; income
-supplied; the price of the same good
-demanded; the price of another good
-demanded; the price of the same good correct answers demanded; the price of another good

If the cross elasticity of demand for two goods is negative,
-one of the goods is necessarily a normal good, and the other good is necessarily an inferior
good.
-both goods are normal goods
-the goods are substitutes.
-the goods are complements. correct answers the goods are complements.

If the cross elasticity of demand for good A with respect to good B is 2.7, then good A is
-a substitute for good B.
-a normal good.
-an inferior good.
-a complement to good B. correct answers a substitute for good B.

If Jack bought 12 DVDs last year when his income was $40,000 and he buys 14 DVDs this year
when his income is $43,000, then his income elasticity of demand is ______________ which
means that DVDs are a(n) ______________ good for Jack.
-+2.13; normal
--0.47; inferior
--2.13; inferior
-+0.41; normal correct answers +2.13; normal

If Casey bought 16 cotton t-shirts last year when her income was $40,000 and she buys 14 cotton
t-shirts this year when her income is $45,000, then for Casey cotton t-shirts are
-a normal good.
- a substitute good.
-an inferior good.
-a complementary good. correct answers an inferior good.

An inferior good is
-any good that consumers think is of low quality.
-a good for which the quantity demanded increases as its price decreases.
-a good for which the demand rises as income falls.
-a good for which the demand rises as income rises. correct answers a good for which the
demand rises as income falls.

Suppose a producer decides that if the price of his or her product is $10, the quantity supplied
will be 1,000 units, and if the price is $11, the quantity supplied will be 1,100. The supply of the
good is
-perfectly elastic

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 FullyFocus. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for CA$15.82. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

66579 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$15.82
  • (0)
  Add to cart