Price elasticity of demand is defined as the ratio

Assignment Help Microeconomics

Reference no: EM13689455

1. If pollution in the in the production of fertilizer were not regulated by the government, the market outcome would be:

a) Underproduction of fertilizer and a higher price

b) Underproduction of fertilizer and a lowerprice

c) Overproduction of fertilizer and a higher price

d) Overproduction of fertilizer and a lowerprice

2. Price elasticity of demand is defined as the ratio of:

a) Percentage increase in price to an increase in quantity demanded

b) Unit change in quantity demanded to the dollar change in price.

c) Maximum amount that consumers will pay to increase quantity

d) Percentage change in quantity demanded to the percentage change in price, other things being equal

3. If demand for a good is price elastic, then the price elasticity of demand will be:

a) eqaul to one

b) equal to zero

c) greater than one

d) less than one

e) less than zero

4. the price elasticity of demand for a vertical demand curve is:

a) perfectly elastic

b) perfectly inelastic

c) unitary elastic

d) elastic

e) inelastic

5. The price elasticity pf demand for a good will be greater:

a) if it has many close substitutes

b) if it is necssity

c) if the time horizon is short-run

d) if a small portion of the budget will be spent on it.

6. Which of the following best describes a prduction function?

a. The relationship between consumer preferences and market demand

b. the relationship between the quantity of labor employed and total cost

c. The relationship between the maximum amounts of output a firm can produce and various quantities of inputs.

d. The relationship between price and quantity supplied by sellers in a market.

Reference no: EM13689455

Questions Cloud

Why competitive-profit-maximizing firms hire labor : Normal 0 false false false EN-US X-NONE X-NONE Explain briefly why competi..

Potential costs and benefits of a fixed exchange rate regime : Normal 0 false false false EN-US X-NONE X-NONE Many countries experiencing..

Price elasticity of demand is defined as the ratio : If pollution in the in the production of fertilizer were not regulated by the government, the market outcome would be: Price elasticity of demand is defined as the ratio of:

Produce output according to the production function : A firm uses capital and labor to produce output according to the production function q= 4*(Sq Root of KL)

Introducing new lottery game called infinite progresso : The gaming commission is introducing a new lottery game called Infinite Progresso. The winner of the Infinite Progresso jackpot will receive $800 at the end of January, $1,700 at the end of February, $2,600 at the end of March,

Graph gdp and one other economic statistic : Graph GDP and one other economic statistic for at least fifteen periods (could be quarterly data or annual data). Superimpose on your graph data from another economic statistic for the same periods.

Annual heat-loss cost in a small power plant : It is estimated that the annual heat-loss cost in a small power plant is $5,200. Two mutually exclusive proposals have been formulated that will reduce the loss. Proposal A will reduce heat loss by 60% and cost $3,000.

User Account

All Pages