Question 1

Which of the following would most likely be the price elasticity of demand for a fancy cruise to Hawaii?

Accepted Answer

The answer of Which of the following would most likely...

Question 2

If a change in price causes no response at all in the quantity of the product demanded, then demand for the product is

Accepted Answer

If a change in price causes no response in the quantity of the product demanded, then demand for the product is said to be perfectly inelastic. This means that no matter how high or low the price of the product is, the quantity demanded will remain the same.

Question 3

Teddy's Burgers decreased the price of their hamburgers by 25 cents, and sold 100 more hamburgers each day. It can be concluded that Teddy's Burgers has a(n) ____ demand for its burgers.

Accepted Answer

The answer of Teddy's Burgers decreased the price of their...

Question 4

Which of the following would most likely be the price elasticity of demand for a your economics textbook (assuming you want to earn an "A")?

Accepted Answer

The price elasticity of demand for a specific economics textbook required to earn an "A" in a course would be very inelastic, meaning consumers (students) are less sensitive to price changes. This is because there are few substitutes for that specific textbook, making it a necessity for students aiming for a high grade, thus the elasticity would be close to 0.

Question 5

Airlines now charge passengers for checking luggage, and for food and blankets in flight. Airlines must have determined that demand for these items is

Accepted Answer

The fact that airlines are charging passengers for these items suggests that demand for them is inelastic. This means that even with an increase in price, consumers still have a relatively high demand for the item (in this case, checking luggage or buying food/blankets on the plane) and are willing to pay the higher price. If demand were elastic, consumers would be more likely to cut back on purchasing these items in response to the higher prices.

Question 6

Figure 4.2 -Refer to Figure 4.2. Observing the changes in quantity demanded as a result of a decrease in price from P₂ to P₁ shows that

Accepted Answer

The answer of Figure 4.2
 
-Refer to Figure 4.2. Observing...

Question 7

Which of the following would most likely be the price elasticity of demand for high cholesterol medicine prescribed to an overweight person?

Accepted Answer

The price elasticity of demand for high cholesterol medicine prescribed to an overweight person is likely to be very inelastic, meaning that changes in price have a very small effect on the quantity demanded. This is because such medication is typically considered a necessity for those it is prescribed to, making them less sensitive to price changes. Therefore, an elasticity closer to 0 (option A) is the most likely.

Question 8

Which of the following would most likely be the price elasticity of demand for seniors at the movie theater?

Accepted Answer

The answer of Which of the following would most likely...

Question 9

Which of the following goods or services will most likely have an inelastic demand?

Accepted Answer

Insulin is a necessary medication for people with diabetes and there are few substitutes available. As a result, the demand for insulin is likely to be inelastic as people will continue to purchase it even if the price increases.

Question 10

The reason students receive discounts to their athletic events is

Accepted Answer

Students typically have more elastic demand due to limited budgets, so discounts are offered to encourage attendance.

Question 11

A price elasticity of demand equal to zero indicates that the demand for a product is

Accepted Answer

A price elasticity of demand equal to zero indicates that a change in the price of the product has no effect on the quantity demanded. This means that the demand is perfectly inelastic, as the quantity demanded remains the same regardless of the price change.

Question 12

Figure 4.2
 
-Refer to Figure 4.2. The demand curve E has a price elasticity

Accepted Answer

A demand curve with a price elasticity of infinity is perfectly elastic, meaning that any change in price will result in an infinite change in quantity demanded. This can be seen in the horizontal line at P1 in curve E, indicating that consumers are willing to purchase any quantity at that price point, but if the price were to increase even slightly, they would not purchase any units.

Question 13

Any change in price that causes a limitless response in the quantity demanded of a product indicates that demand is

Accepted Answer

A limitless response in the quantity demanded of a product when its price changes indicates that the demand is perfectly elastic. This means consumers are willing to buy any quantity at a certain price, but none at all if the price changes even slightly.

Question 14

Figure 4.2
 
-Refer to Figure 4.2. The demand curve B is most likely to have a price elasticity of demand that

Accepted Answer

The price elasticity of demand can vary along a demand curve, depending on the specific shape and slope of the curve. It can be greater than 1 (elastic), less than 1 (inelastic), or equal to 1 (unit elastic) at different points.

Question 15

A horizontal demand curve is

Accepted Answer

A horizontal demand curve is perfectly elastic because any increase in price will cause consumers to switch to substitutes, resulting in no demand for the original product.

Question 16

Figure 4.2
 
-In Figure 4.2, which demand curve is least likely to represent demand for high blood pressure medicine?

Accepted Answer

High blood pressure medicine typically has an inelastic demand because it is a necessary good for those who need it, meaning consumers are less sensitive to price changes. Curve E, which is relatively flat, indicates a high elasticity of demand, suggesting that consumers would significantly change their quantity demanded with a change in price. This characteristic is less likely for high blood pressure medicine, making E the least likely choice.

Question 17

Figure 4.2
 
-Refer to Figure 4.2. The demand curve E is most likely to represent the

Accepted Answer

The demand curve E represents the demand for one specific producer's apples, as evidenced by the fact that it intersects the vertical axis at a positive price (indicating that the consumer is willing to pay for this particular producer's apples even when the price is zero), and that it slopes downwards (indicating that as the price of this particular producer's apples increases, the quantity demanded decreases). The other answer choices either do not fit this description or cannot be determined from the information given.

Question 18

The demand for Pepsi ____ the demand for "soda".

Accepted Answer

The demand for a specific brand, such as Pepsi, is more elastic than the demand for the overall product category of "soda". This is because there are likely to be more close substitutes available for a specific brand, making it easier for consumers to switch to a different brand if the price of Pepsi increases. In contrast, if the price of all soda increases, consumers may have fewer alternatives and may still choose to purchase soda despite the price increase.

Question 19

If electric rates were increased by 10 percent because of increased prices of fuel oil and natural gas, and the quantity demanded did not change, one could conclude that, in the short run, the demand for electricity is

Accepted Answer

When the quantity demanded of a good does not change even if the price of the good increases, it implies that the good has a perfectly inelastic demand. In this case, even though the electric rates increased by 10 percent, there was no change in the quantity demanded, suggesting that the demand for electricity is perfectly inelastic in the short run.

Question 20

Figure 4.2
 
-Refer to Figure 4.2. The demand curve A indicates that

Accepted Answer

The answer of Figure 4.2
 
-Refer to Figure 4.2. The...

Quiz 4: The Firm and the Consumer

Which of the following would most likely be the price elasticity of demand for a fancy cruise to Hawaii?

If a change in price causes no response at all in the quantity of the product demanded, then demand for the product is

Teddy's Burgers decreased the price of their hamburgers by 25 cents, and sold 100 more hamburgers each day. It can be concluded that Teddy's Burgers has a(n) ____ demand for its burgers.

Which of the following would most likely be the price elasticity of demand for a your economics textbook (assuming you want to earn an "A") ?

Airlines now charge passengers for checking luggage, and for food and blankets in flight. Airlines must have determined that demand for these items is

Figure 4.2 -Refer to Figure 4.2. Observing the changes in quantity demanded as a result of a decrease in price from P₂ to P₁ shows that

Which of the following would most likely be the price elasticity of demand for high cholesterol medicine prescribed to an overweight person?

Which of the following would most likely be the price elasticity of demand for seniors at the movie theater?

Which of the following goods or services will most likely have an inelastic demand?

The reason students receive discounts to their athletic events is

A price elasticity of demand equal to zero indicates that the demand for a product is

Figure 4.2 -Refer to Figure 4.2. The demand curve E has a price elasticity

Any change in price that causes a limitless response in the quantity demanded of a product indicates that demand is

Figure 4.2 -Refer to Figure 4.2. The demand curve B is most likely to have a price elasticity of demand that

A horizontal demand curve is

Figure 4.2 -In Figure 4.2, which demand curve is least likely to represent demand for high blood pressure medicine?

Figure 4.2 -Refer to Figure 4.2. The demand curve E is most likely to represent the

The demand for Pepsi ____ the demand for "soda".

If electric rates were increased by 10 percent because of increased prices of fuel oil and natural gas, and the quantity demanded did not change, one could conclude that, in the short run, the demand for electricity is

Figure 4.2 -Refer to Figure 4.2. The demand curve A indicates that

Quiz 4: The Firm and the Consumer

Which of the following would most likely be the price elasticity of demand for a fancy cruise to Hawaii?

If a change in price causes no response at all in the quantity of the product demanded, then demand for the product is

Teddy's Burgers decreased the price of their hamburgers by 25 cents, and sold 100 more hamburgers each day. It can be concluded that Teddy's Burgers has a(n) ____ demand for its burgers.

Which of the following would most likely be the price elasticity of demand for a your economics textbook (assuming you want to earn an "A") ?

Airlines now charge passengers for checking luggage, and for food and blankets in flight. Airlines must have determined that demand for these items is

Figure 4.2 -Refer to Figure 4.2. Observing the changes in quantity demanded as a result of a decrease in price from P2 to P1 shows that

Which of the following would most likely be the price elasticity of demand for high cholesterol medicine prescribed to an overweight person?

Which of the following would most likely be the price elasticity of demand for seniors at the movie theater?

Which of the following goods or services will most likely have an inelastic demand?

The reason students receive discounts to their athletic events is

A price elasticity of demand equal to zero indicates that the demand for a product is

Figure 4.2 -Refer to Figure 4.2. The demand curve E has a price elasticity

Any change in price that causes a limitless response in the quantity demanded of a product indicates that demand is

Figure 4.2 -Refer to Figure 4.2. The demand curve B is most likely to have a price elasticity of demand that

A horizontal demand curve is

Figure 4.2 -In Figure 4.2, which demand curve is least likely to represent demand for high blood pressure medicine?

Figure 4.2 -Refer to Figure 4.2. The demand curve E is most likely to represent the

The demand for Pepsi ____ the demand for "soda".

If electric rates were increased by 10 percent because of increased prices of fuel oil and natural gas, and the quantity demanded did not change, one could conclude that, in the short run, the demand for electricity is

Figure 4.2 -Refer to Figure 4.2. The demand curve A indicates that

Figure 4.2 -Refer to Figure 4.2. Observing the changes in quantity demanded as a result of a decrease in price from P₂ to P₁ shows that