Reference no: EM131156401

Hey someone please help me with the following question

1. The quantity of a good demanded rises from 1000 to 1500 units when the price falls from $1.50 to $1.00 per unit. The price elasticity of demand for this product is approximately:A. 1.0B. .16C. 2.5D. 4.0

2. If the elasticity of demand for a commodity is estimated to be 1.5, then a decrease in price from $2.10 to $1.90 would be expected to increase daily sales by:A. 50%B. 1.5%C. 5%D. 15%

3. Demand is said to be inelastic when:A. the percentage change in quantity demanded is greater than the percentage change in price of a goodB. in a linear demand curve, quantity demanded is close to zero (given the price) so that the percentage change in quantity demanded will be very highC. the percentage change in price exceeds the percentage change in quantity demanded of a goodD. a relatively small change in price results in a relatively big change in quantity demanded

4. Suppose that the Board of Directors of the local symphony proposes that the admission price to hear the orchestra be raised as a means of raising additional funds to support music programs. Its members are implicitly assuming that the price elasticity of demand for a ticket is:A. less than unityB. greater than unityC. unityD. it really says nothing about price elasticity

5. The determinants of the price elasticity of demand of a particular commodity include all of the following except:A. the availability of substitutes for the commodityB. the time period involvedC. the ease with which resources can be shifted to and from the production of this commodity to other usesD. the degree of specificity with which the commodity is defined

6. The fact that the expenditure on food as a percentage of income has declined as income has increased indicates that food:A. is an inferior goodB. is a luxury goodC. has an income elasticity of demand less than unityD. is a normal good with an elastic demandE. there is not enough information to be able to determine what type of good food is

7. A tax will be borne completely by suppliers if:A. the demand curve is perfectly inelastic while the supply curve is upward slopingB. the demand curve is downward sloping while the supply curve is perfectly inelasticC. the supply curve is perfectly elastic and the demand curve is negatively slopeD. price elasticities of both supply and demand equal oneE. both the demand and supply curves are perfectly inelastic

8. The quantity of a good demanded rises from 90 units to 110 units when the price falls from $1.20 to $.80 per unit. The price elasticity of demand for this product approximates:A. .5B. 1.0C. 2.0D. 4.0

9. A downhill ski area is experiencing a decline in the number of lift tickets sold, falling revenues, and inadequate profits. The average price of a lift ticket is $20 and there are 2,500 tickets sold daily on average. The estimated price elasticity of demand is 1.5 and the lifts are currently operating at an average of 75 percent of capacity. Which of the following methods is most likely to increase the ski area's revenues and profits.A. a 10 percent increase in the average price of a lift ticket.B. an aggresive advertising campaign.C. a 10 percent increase in the average price of a lift ticket combined with an aggresive advertising campaign.D. a 10 percent decrease in the average price of a lift ticket.

10. Consumers will bear more of the burden of a tax the:A. more elastic supply is.B. more elastic demand is.C. the more inelastic supply is.D. consumers always bear the burden of the tax since they pay the final price.E. none of the above.

11. From the following data relating to a firm, calculate its net value added at factorcost:(Rs in Lacs)(i) Subsidy 40(ii) Sales 800(iii) Depreciation 30(iv) Exports 100(v) Closing stock 20(vi) Opening stock 50(vii) Intermediate purchases 500(viii) Purchase of machinery for own use 200(ix) Import of raw material 60