Toothpaste and toothbrushes are complements, so the ________ elasticity of demand is ________. Correct Answer-cross; negative
If two variables are positively related Correct Answer-they move in the same direction over time
If demand is price elastic, Correct Answer-a 1 percent decrease in the...
Econ 202 Exam # 1 Questions with Correct Answers
Toothpaste and toothbrushes are complements, so the ________ elasticity of demand is ________. Correct Answer-cross; negative
If two variables are positively related Correct Answer-they move in the same direction over time
If demand is price elastic, Correct Answer-a 1 percent decrease in the price leads to an increase in the quantity demanded that exceeds 1 percent.
Which of the following is a microeconomic topic? Correct Answer-the reasons why Kathy buys less orange juice
Producers' total revenue will decrease if Correct Answer-the price rises and demand is elastic.
Which of the following is NOT one of the factors that influences the supply of a product? Correct Answer-income
The price elasticity of demand measures Correct Answer-the responsiveness of the quantity demanded to changes in price
When supply decreases and demand does not change, the equilibrium quantity Correct Answer-decreases and the price rises When the demand for a good decreases, its equilibrium price ________ and equilibrium quantity ________. Correct Answer-falls; decreases
Goods whose income elasticities are negative are called Correct Answer-
inferior goods
A price ________ makes it illegal to pay a lower price than the specified
level. One example is Correct Answer-floor; the minimum wage
The more substitutes available for a product, Correct Answer-the larger is its the price elasticity of demand.
The cross elasticity of demand between Coca-Cola and Pepsi-Cola is Correct Answer-positive, that is, Coke and Pepsi are substitutes
A normal good is a good for which Correct Answer-demand increases when income increases
The quantity demanded of a good or service is the quantity that a consumer Correct Answer-is willing to buy at a particular price during a given time period.
A change in the price of a good Correct Answer-does not shift the good's
demand curve but does cause a movement along it.
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