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  3. Liberty ECON 213 Quiz 7 Answers Complete Solutions

Contents

  • 1 Liberty ECON 213 Quiz 7 Answers Complete Solutions
      • 1.0.1 Question 1
      • 1.0.2 Question 2
      • 1.0.3 Question 3
      • 1.0.4 Question 4
      • 1.0.5 Question 5
      • 1.0.6 Question 6
      • 1.0.7 Question 7
      • 1.0.8 Question 8
      • 1.0.9 Question 9
      • 1.0.10 Question 10
      • 1.0.11 Question 11
      • 1.0.12 Question 12
      • 1.0.13 Question 13
      • 1.0.14 Question 14
      • 1.0.15 Question 15
      • 1.0.16 Question 16
      • 1.0.17 Question 17
      • 1.0.18 Question 18
      • 1.0.19 Question 19
      • 1.0.20 Question 20

Liberty ECON 213 Quiz 7 Answers Complete Solutions

 

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Question 1

Which one of the following pairs of goods is likely to have a positive cross­price elasticity of demand?

Question 2

If the income elasticity of demand for noodles is –2 and the percentage change in the quantity consumed is 5%, what is the percentage change in income?

Question 3

The reason that Darren buys a lot more paintings when the price of art falls is that:

Question 4

Howard buys 5 suits a year when he earns $70,000. When his income increases to $200,000, he buys 15 suits a year. From the midpoint method, his income elasticity of demand for suits is:

Question 5

Henry raised his quantity demanded of hockey pucks from 100 to 150 when the price fell from $5 to $3 per puck. Using the midpoint method, his price elasticity of demand is:

Question 6

Robert’s Furniture produces high­quality wooden bedroom sets that take approximately 4 months to make, from start to finish. The price elasticity of supply for these bedroom sets in the short term is:

Question 7

The Sunny Softball league found that, when it changed its ticket prices from $10 to $5, there was a more than proportional but not infinite increase in attendance. The price elasticity of demand is:

Question 8

We would expect to see a positive cross­price elasticity between:

Question 9

What good is most likely to have an income elasticity of demand equal to 0.3?

Question 10

Jane says that she will always spend $20 a week on lattes. Jane’s demand for lattes is price:

Question 11

As you move left along the demand curve, the price elasticity of demand:

Question 12

Firms are indifferent to changing prices when the price elasticity of demand is:

Question 13

Refer to the following graphs to answer the questions that follow: Which of these graphs most likely depicts a price elasticity of demand of –5?

Question 14

If the cross­price elasticity of demand between Good A and Good B is 3, the price of Good B increases, and the price elasticity of demand for Good B is inelastic, we can expect to see a ________ change in the quantity demanded for Good A:

Question 15

If your friend says, “I am never going to buy another Avicii remix again!” his price elasticity of demand for Avicii remixes is:

Question 16

Shawna wins the lottery and her income increases by 60%. She used to buy 10 pints of cottage cheese per month and now she buys 12 pints. Her income elasticity of demand for cottage cheese is ________, making it a(n) ________ good.

Question 17

The initial price of picture frames is $6 and suppliers offer 20 frames. When the price falls to $4, suppliers offer only 10. The price elasticity of supply is:

Question 18

Price elasticity of demand is measured as the:

Question 19

When the price of erasers increases from $1.50 to $2.50, the quantity demanded of pencils is unchanged. The cross­price elasticity of demand between erasers and pencils is ________ because erasers and pencils ________.

Question 20

A 15% increase in the price of cookies results in a 9% decrease in the quantity of cookies sold. The revenue received by cookie suppliers will ________ because the price elasticity of demand for cookies is ________.

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