Question Question 1. Question : (TCO 2) Economists use the term “demand” to refer to

03 Jun Question Question 1. Question : (TCO 2) Economists use the term “demand” to refer to

Question
Question 1. Question :

(TCO 2) Economists use the term “demand” to refer to

: a particular price-quantity combination on a stable demand curve.

the total amount spent on a particular commodity over a stipulated time period.

an upsloping line on a graph that relates consumer purchases and product price.

a schedule of various combinations of market prices and quantities-demanded.

Question 2. Question :

(TCO 2) Which of the following will not cause the demand for product K to change?

: A change in the price of close-substitute product J

An increase in consumer incomes

A change in the price of K

A change in consumer tastes

Question 3. Question :

(TCO 2) If X is a normal good, a rise in money income will shift the

: supply curve for X to the left.

supply curve for X to the right.

demand curve for X to the left.

demand curve for X to the right.

Question 4. Question :

(TCO 2) Which of the following would mostly likely increase the demand for gasoline?

: The expectation by consumers that gasoline prices will be higher in the future

The expectation by consumers that gasoline prices will be lower in the future

A widespread shift in car ownership from SUVs to hybrid sedans

A decrease in the price of public transportation

:

Question 5. Question :

(TCO 2) The supply curve shows the relationship between

: price and quantity supplied.

production costs and the amount demanded.

total business revenues and quantity supplied.

physical inputs of resources and the resulting units of output.

Question 6. Question :

(TCO 2) If the demand for bacon is relatively elastic, a 10% decline in the price of bacon will

: decrease the amount demanded by more than 10%.

increase the amount demanded by more than 10%.

decrease the amount demanded by less than 10%.

increase the amount demanded by less than 10%.

Question 7. Question :

(TCO 2) If the price of hand calculators falls from $10 to $9 and, as a result, the quantity demanded increases from 100 to 125, then

: demand is elastic.

demand is inelastic.

demand is of unit elasticity.

not enough information is given to make a statement about elasticity.

Question 8. Question :

(TCO 2) The concept of price elasticity of demand measures

: the slope of the demand curve.

the number of buyers in a market.

the extent to which the demand curve shifts as the result of a price decline.

the sensitivity of consumer purchases to price changes.

Question 9. Question :

(TCO 2) If the University Chamber Music Society decides to raise ticket prices to provide more funds to finance concerts, the Society is assuming that the demand for tickets is

: parallel to the horizontal axis.

shifting to the left.

inelastic.

elastic.

Question 10. Question :

(TCO 2) The more time consumers have to adjust to a change in price

: the smaller will be the price elasticity of demand.

the greater will be the price elasticity of demand.

the more likely the product is a normal good.

the more likely the product is an inferior good.

Question 11. Question :

(TCO 2) What is the Law of Supply? Why does the supply curve slope upwards?

:

Comments: quantity supplied.

Question 12. Question :

(TCO 2) Suppose the price of widgets rises from $5 to $7 and consumption of widgets falls from 25 widgets a month to 15 widgets. Calculate your price elasticity of demand of widgets. What can you say about your price elasticity of demand of widgets? Is it Elastic, Inelastic, or Unitary Elastic? Why? Use the Midpoint formula and please show your work.