Perfectly inelastic - Study guides, Class notes & Summaries

Determinants of Price Elasticity of Demand - Answer Availability of substitutes, Luxury or Necessity, The share of total budget, time dimension Availability of substitutes - Answer greater the number of substitutes, the more ELASTIC the demand, when all firms in a market produce products which are perfect substitutes for each other, the demand is perfectly elastic Luxury or Necessity - Answer A product is a luxury will have more elastic demand than a product deemed necessity. Luxury ...

Production Possibility Frontier Supply and demand diagram showing equilibrium Supply and demand surplus Increase in demand Decrease in demand Increase in supply Decrease in supply Consumer surplus Producer surplus Inelastic demand Elastic demand Unitary elastic demand Perfectly elastic demand Perfectly inelastic demand Inelastic supply Elastic supply Substitutes diagram Ad valorem tax Tax diagram Subsi...

Econ 101: Exam 2 When the price goes down, the quantity demanded goes up. The price elasticity of demand measures: A) how much the price goes down. B) how much the equilibrium price goes up. C) the responsiveness of the price change to an income change. D) the responsiveness of the quantity change to the price change. - ANSWER D The price of gasoline rises 5% and the quantity of gasoline purchased falls 1%. The price elasticity of demand is equal to _____, and demand is described as ____...

WGU C718 Questions and Answers Already Graded A When a 10% price increase generates a 10% decrease in quantity demanded Unit Elastic When beef and pork are substitutes for consumers, the cross elasticity of demand between the two products is... Positive When the price elasticity of demand for opera tickets in Orlando is 1.00 the the demand for opera tickets in Orlando is Unit Elastic A vertical demand curve reflects demand that is Perfectly Inelastic Consumers will buy a certain quantity reg...

Economics: Elasticity Questions and Answers 100% Pass Elasticity. A measure of how much buyers and sellers respond to changes in market conditions / a measure of the responsiveness of quantity demanded or quantity supplied to one of its determinants Price elasticity of demand. Measures how much the quantity demanded of a good responds to a change in price of that good How does the market react to a good being elastic/inelastic? Elastic - quantity demanded responds substantially to chang...

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 total revenue to: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.As we move down along a linear demand curve, the price elasticity of demand becomes...

MANAGEMENT ADVISORY SERVICES QUESTIONS AND ANSWERS THEORY 1. Which of the following costs should consider the tax shield effect in computing the costs of capital? A A. Cost of debt B. Cost of common stock C. Cost of preferred stock D. Cost of retained earnings 2. Which of the following is not considered in the cash conversion cycle? B A. Receivable collection period B. Debt repayment period C. Inventory conversion period D. Payable deferral period ...

UGBA 101A Midterm 1steep supply/demand curves - correct answer large changes in price/small changes in quantity shallow supply/demand curves - correct answer small changes in price/large changes in quantity elasticity - correct answer price elasticity of demand formula - correct answer E^D=%∆Q^D/%∆P price elasticity of supply formula - correct answer E^S=%∆Q^S/%∆P what happens when PED is high - correct answer small changes in price result in large changes in quantity dem...

UNT ECON 1100 Exam 1 The primary difference between a change in supply and a change in the quantity supplied is: - a change in quantity supplied is caused by a change in the price of the good itself, and a change in supply is caused by a change in a non-price determinant of supply Which of the following will cause a decrease in the demand for batteries? - An increase in the price of digital cameras, a complement for batteries Based on the information in the table below, the opportuni...

Production Possibility Frontier - ANSWERS Supply and demand diagram showing equilibrium - ANSWERS Supply and demand surplus - ANSWERS Increase in demand - ANSWERS Decrease in demand - ANSWERS Increase in supply - ANSWERS Decrease in supply - ANSWERS Consumer surplus - ANSWERS Producer surplus - ANSWERS Inelastic demand - ANSWERS Elastic demand - ANSWERS Unitary elastic demand - ANSWERS Perfectly elastic demand - ANSWERS Perfectly inelastic demand - ANSWERS ...