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Workshop 3

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asim
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39 views4 pages

Workshop 3

Uploaded by

asim
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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1 ‫ا ل س ؤا ل‬

At a price of $11, quantity demanded is 90; and at a price of $9, quantity demanded is 110.
Since total revenue by the price decrease, demand must be
is decreased / inelastic
is unchanged / elastic
is unchanged / unit elastic
is increased / elastic
2 ‫ا ل س ؤا ل‬
When the price of fresh fish increases 10%, quantity demanded decreases 5%. The price
elasticity of demand for fresh fish is and total revenue from
fresh fish sales will
inelastic; increase
elastic; increase
elastic; decrease
inelastic; decrease
3 ‫ا ل س ؤا ل‬
Assume you earn $20,000 a year and your favorite sports magazine costs you $100 a year.
Your demand for the sports magazine is likely to be
perfectly elastic
elastic
inelastic
perfectly inelastic
4 ‫ا ل س ؤا ل‬
The cross-price elasticity of demand between good X and good Y is -3. Given this
information, which of the following statements is TRUE
Goods X and Y are complements
Goods X and Y are substitutes
The demand for goods X and Y is income elastic
The demand for goods X and Y is elastic
5 ‫ا ل س ؤا ل‬
At a price of $4, quantity supplied is 100; and at a price of $6, quantity supplied is 120. Using
the midpoint formula, the price elasticity of supply is ........and supply is
10; elastic
0.1; inelastic
0.45; inelastic
2.2; elastic

6 ‫ا ل س ؤا ل‬
In output markets, the elasticity of supply tends to be
decreasing at an increasing rate
zero
negative
positive
7 ‫ا ل س ؤا ل‬
If the quantity demanded of tea increases by 2% when the price of coffee increases by 6%,
the cross‐price elasticity of demand between tea and coffee is
3
12
3-
0.33
8 ‫ا ل س ؤا ل‬
The price elasticity of demand for heart transplants is perfectly inelastic. Thus,
the price elasticity demand for heart transplants is
0.0
1.0
‐100.0
‐1.0
9 ‫ا ل س ؤا ل‬
If the cross‐price elasticity of demand between fish and chicken is 2, then a 2% increase in
the price of fish will result in a in the quantity of chicken demanded
4% increase
1% increase
10% increase
20% decrease
1 0 ‫ا ل س ؤا ل‬
The wner of a local hot dog stand has estimated that if he lowers the price of hot dogs from
$2.00 to $1.50, he will increase sales from 400 to 500 hot dogs per day. Using the m
idpoint formula, the demand for hot dogs is
perfectly elastic
unit elastic
inelastic
elastic

1 1 ‫ا ل س ؤا ل‬

For perfectly price elastic supply curve will be a line


horizontal
upward sloping
downward sloping
vertical
1 2 ‫ا ل س ؤا ل‬
A line is a perfectly price inelastic demand curve
positively sloped
vertical
horizontal
negatively sloped
1 3 ‫ا ل س ؤا ل‬
The determinants of elasticity include
all are correct
price relative to income
time
availability of substitutes
1 4 ‫ا ل س ؤا ل‬
A government wants to reduce electricity consumption by 10%. The price elasticity of deman
d for electricity is ‐5. The government must the price
of electricity by .
raise; 2.0%
raise; 0.5%
lower /0.5%
raise / 1.25%
1 5 ‫ا ل س ؤا ل‬
The income elasticity of demand
measures the responsiveness of quantity demanded to changes in income
measures the responsiveness of income to changes in quantity demanded
is the ratio of the percentage change in income to the percentage change in quantity
demanded
measures the change in income necessary for a given change in quantity demanded
1 6 ‫ا ل س ؤا ل‬
The income elasticity of demand for education is 3.5. Thus, a 4% increase in income will
% decrease the quantity of education demanded by 3.5
increase the quantity of education demanded by 14%
decrease the quantity of education demanded by 14%
increase the quantity of education demanded by 4%
1 7 ‫ا ل س ؤا ل‬
An increase in demand caused no change in the equilibrium price. Thus, supply must be
perfectly elastic
elastic
inelastic
perfectly inelastic
1 8 ‫ا ل س ؤا ل‬
................Total revenue increases if price................and demand is
rises; inelastic
falls; inelastic
falls; elastic
rises; elastic
1 9 ‫ا ل س ؤا ل‬
When the price of coffee increases 5%, quantity demanded decreases 10%. The price elastici
ty of demand or coffee is .................. and total revenue from coffee sales will
elastic; increase
elastic; decrease
inelastic; increase
inelastic; decrease
2 0 ‫ا ل س ؤا ل‬
Price and total revenue are directly related when demand is
unit price elastic
price inelastic
perfectly price
price elastic

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