Test Bank Solution Manual for Microeconomics Chapter 3 Rated A+
2 views 0 purchase
Course
Microeconomics
Institution
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.
The benefits of buying summaries with Stuvia:
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
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
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 TutorJosh. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $7.99. You're not tied to anything after your purchase.
