micro test #2 - Custom Scholars
Home » Flash Cards » micro test #2

# micro test #2

question
1. Macroeconomic deals with
all of the above
question
1. Macroeconomic deals with
household and firms
question
3. If the price elasticity of demand is 0.3, it means:
d. if price increases by \$1, demand decreases by 0.3 units.
question
4. When the price elasticity of demand is calculated, it is a negative number which means:
a. as price increases quantity decreases.
question
5. Income elasticity of demand measures
b. the reaction of quantity demanded to changes in income.
question
6. The more vertical the demand curve
a. the lower the elasticity
question
7. The more horizontal the demand curve
a. the higher the elasticity
question
8. In general, elasticity is
b. the reaction of one variable to the changes in other variable.
question
9. The price elasticity of supply measures how responsive
d. sellers are to a change in price.
question
10. Demand is said to be inelastic if
c. buyers do not respond much to changes in the price of the good.
question
11. If a good is a luxury item, demand for the good would tend to be
d. elastic.
question
12. Suppose the price of Twinkies is reduced from \$1.45 to \$1.25 and, as a result, the quantity of Twinkies demanded increases from 2,000 to 2,200. Using the midpoint method, the price elasticity of demand for Twinkies in the given price range is
d. .64.
question
13. Demand is elastic if elasticity is
d. greater than 1.
question
14. According to the above graph, the section of the demand curve labeled B represents the
d. unit elastic section of the demand curve.
question
15. According to the following graph, the total revenue at P2 is represented by area(s)
A+B
question
16. Last year, Joan bought 50 pounds of hamburger when the household income was \$40,000. This year, the household income was only \$30,000 and Joan bought 60 pounds of hamburger. All else constant Joan's income elasticity of demand for hamburger is
c. negative, so Joan considers hamburger to be an inferior good.
question
Suppose that an increase in the price of carrots from \$1.20 to \$1.40 per pound raises the amount of carrots that carrot farmers produce from 1.2 million pounds to 1.6 million pounds. Using the midpoint method, what would be the elasticity of supply?
1.86
question
18. Assume that a 4 percent increase in income results in a 2 percent increase in the quantity demanded of a good. The income elasticity of demand for the good is
d. positive and therefore the good is a normal good.
question
20. If the cross-price elasticity of demand is 1.25, then the two goods would be
d. substitutes.
1 of 19
question
1. Macroeconomic deals with
all of the above
question
1. Macroeconomic deals with
household and firms
question
3. If the price elasticity of demand is 0.3, it means:
d. if price increases by \$1, demand decreases by 0.3 units.
question
4. When the price elasticity of demand is calculated, it is a negative number which means:
a. as price increases quantity decreases.
question
5. Income elasticity of demand measures
b. the reaction of quantity demanded to changes in income.
question
6. The more vertical the demand curve
a. the lower the elasticity
question
7. The more horizontal the demand curve
a. the higher the elasticity
question
8. In general, elasticity is
b. the reaction of one variable to the changes in other variable.
question
9. The price elasticity of supply measures how responsive
d. sellers are to a change in price.
question
10. Demand is said to be inelastic if
c. buyers do not respond much to changes in the price of the good.
question
11. If a good is a luxury item, demand for the good would tend to be
d. elastic.
question
12. Suppose the price of Twinkies is reduced from \$1.45 to \$1.25 and, as a result, the quantity of Twinkies demanded increases from 2,000 to 2,200. Using the midpoint method, the price elasticity of demand for Twinkies in the given price range is
d. .64.
question
13. Demand is elastic if elasticity is
d. greater than 1.
question
14. According to the above graph, the section of the demand curve labeled B represents the
d. unit elastic section of the demand curve.
question
15. According to the following graph, the total revenue at P2 is represented by area(s)
A+B
question
16. Last year, Joan bought 50 pounds of hamburger when the household income was \$40,000. This year, the household income was only \$30,000 and Joan bought 60 pounds of hamburger. All else constant Joan's income elasticity of demand for hamburger is
c. negative, so Joan considers hamburger to be an inferior good.
question
Suppose that an increase in the price of carrots from \$1.20 to \$1.40 per pound raises the amount of carrots that carrot farmers produce from 1.2 million pounds to 1.6 million pounds. Using the midpoint method, what would be the elasticity of supply?
1.86
question
18. Assume that a 4 percent increase in income results in a 2 percent increase in the quantity demanded of a good. The income elasticity of demand for the good is
d. positive and therefore the good is a normal good.
question
20. If the cross-price elasticity of demand is 1.25, then the two goods would be
d. substitutes.

## Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
\$26
The price is based on these factors:
Number of pages
Urgency
Basic features
• Free title page and bibliography
• Unlimited revisions
• Plagiarism-free guarantee
• Money-back guarantee
On-demand options
• Writer’s samples
• Part-by-part delivery
• Overnight delivery
• Copies of used sources
Paper format
• 275 words per page
• 12 pt Arial/Times New Roman
• Double line spacing
• Any citation style (APA, MLA, Chicago/Turabian, Harvard)

## Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

### Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

### Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

### Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.