Test Bank Solution Manual for Microeconomics Chapter 3 Rated A+
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Microeconomics
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Microeconomics
Test Bank Solution Manual for Microeconomics Chapter 3 Rated A+
The change in price that results from a leftward shift of the supply curve will be greater if
A) the demand curve is relatively steep than if the demand curve is relatively flat.
B) the demand curve is relatively flat than if the de...
Test Bank Solution Manual for Microeconomics Chapter 3 Rated A+
The change in price that results from a leftward shift of the supply curve will be greater if
A) the demand curve is relatively steep than if the demand curve is relatively flat.
B) the demand curve is relatively flat than if the demand curve is relatively steep.
C) the demand curve is horizontal than if the demand curve is vertical.
D) the demand curve is horizontal than if the demand curve is downward sloping - Answers the demand
curve is relatively steep than if the demand curve is relatively flat.
The change in price that results from a rightward shift in demand will be greater if
A) the supply curve is horizontal than if the supply curve is upward sloping.
B) the supply curve is relatively steep than if the supply curve is relatively flat.
C) the supply curve is upward sloping than if the supply curve is vertical.
D) the supply curve is horizontal than if the supply curve is vertical. - Answers the supply curve is
relatively steep than if the supply curve is relatively flat.
If the demand curve for a good is horizontal and the price is positive, then a leftward shift of the supply
curve results in
A) a price of zero.
B) an increase in price.
C) a decrease in price.
D) no change in price. - Answers no change in price
A vertical demand curve results in
A) no change in quantity when the supply curve shifts.
B) no change in price when the supply curve shifts.
C) no change in the supply curve being possible.
D) no change in quantity when the demand curve shifts. - Answers no change in quantity when the
supply curve shifts.
A vertical demand curve for a particular good implies that consumers are
A) sensitive to changes in the price of that good.
, B) not sensitive to changes in the price of that good.
C) irrational.
D) not interested in that good. - Answers not sensitive to changes in the price of that good.
Suppose the inverse demand curve for a good is expressed as Q = 50 - 2p. If the good currently sells for
$3, then the price elasticity of demand is
A) -3 x (2/50).
B) -2 x (50/3).
C) -2 x (3/44).
D) -3 x (44/2). - Answers -2 * (3/44).
Suppose the demand function for a good is expressed as Q = 100 - 4p. If the good currently sells for $10,
then the price elasticity of demand equals
A) -1.5.
B) -0.67.
C) -4.
D) -2.5. - Answers -0.67.
If an increase in income results in a rightward parallel shift of the demand curve, then at any given price,
the price elasticity of demand will have
A) increased in absolute terms.
B) decreased in absolute terms.
C) remained unchanged.
D) increased, decreased or stayed the same. It cannot be determined. - Answers decreased in absolute
terms.
If the demand function for orange juice is expressed as Q = 2000 - 500p, where Q is quantity in gallons
and p is price per gallon measured in dollars, then the demand for orange juice has a unitary elasticity
when price equals
A) $0.
B) $1.
C) $2.
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