Econ 111 Exam 2 questions n answers
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The price elasticity of demand measures the responsiveness of the change in the - correct
answer ✔✔quantity demanded to a change in price
The price elasticity of demand for beef is estimated to be 0.60 (in absolute value). This means
that a 20 percent increase in the price of beef, ceteris paribus, will cause the quantity
demanded of beef to - correct answer ✔✔Decrease by 12 percent
When the price of tortilla chips rose by 10 percent, the quantity demand of tortilla chips fell by
4 percent. This indicates that the demand for tortilla chips is - correct answer ✔✔Inelastic
Suppose that when the price per case of Bull moose beer rises from $14 to $16, the quantity
demanded falls from 300 to 200 cases per week. Using the midpoint formula, what is the price
elasticity of demand (in absolute value)? - correct answer ✔✔3
A perfectly inelastic demand curve implies that - correct answer ✔✔the buyers purchase the
same amount when the price rise or falls
For which of the following will demand be the most price elastic - correct answer ✔✔Happy
Cow brand milk at Ralph's Grocery Store
The demand for salt is probably more price inelastic than the demand for potatoes because -
correct answer ✔✔salt is cheap relative to most users' income and has few good substitutes
If demand is inelastic, then - correct answer ✔✔The price effect dominates the quantity effect,
and an increase in price will cause total revenue to rise.
rated A+ already passed
The price elasticity of demand measures the responsiveness of the change in the - correct
answer ✔✔quantity demanded to a change in price
The price elasticity of demand for beef is estimated to be 0.60 (in absolute value). This means
that a 20 percent increase in the price of beef, ceteris paribus, will cause the quantity
demanded of beef to - correct answer ✔✔Decrease by 12 percent
When the price of tortilla chips rose by 10 percent, the quantity demand of tortilla chips fell by
4 percent. This indicates that the demand for tortilla chips is - correct answer ✔✔Inelastic
Suppose that when the price per case of Bull moose beer rises from $14 to $16, the quantity
demanded falls from 300 to 200 cases per week. Using the midpoint formula, what is the price
elasticity of demand (in absolute value)? - correct answer ✔✔3
A perfectly inelastic demand curve implies that - correct answer ✔✔the buyers purchase the
same amount when the price rise or falls
For which of the following will demand be the most price elastic - correct answer ✔✔Happy
Cow brand milk at Ralph's Grocery Store
The demand for salt is probably more price inelastic than the demand for potatoes because -
correct answer ✔✔salt is cheap relative to most users' income and has few good substitutes
If demand is inelastic, then - correct answer ✔✔The price effect dominates the quantity effect,
and an increase in price will cause total revenue to rise.
