If the income elasticity of demand for a good is negative it must be ?
A. an elastic good
B. an inferior good
C. a normal good
D. a luxury good
Elasticity
If there is excess capacity in a production facility it is likely that the firm’s supply curve is ?
If there is excess capacity in a production facility it is likely that the firm’s supply curve is ?
A. price inelastic
B. none of these
C. unit price elastic
D. price elastic
Technological improvements in agriculture that shift the supply of agricultural commodities to the right tend to ?
Technological improvements in agriculture that shift the supply of agricultural commodities to the right tend to ?
A. increase total revenue to farmers as a whole because the demand for food is elastic
B. increase total revenue to farmers as whole because the demand for food is inelastic
C. reduce total revenue to farmers as a whole because the demand for food is elastic
D. reduce total revenue to farmers as a whole because the demand for food is inelastic
A decrease in supply (shift to the left) will increase total revenue in that market if ?
A decrease in supply (shift to the left) will increase total revenue in that market if ?
A. demand is price inelastic
B. supply is price elastic
C. supply is price inelastic
D. demand is price elastic
If a supply curve for a good is price elastic then ?
If a supply curve for a good is price elastic then ?
A. the quantity supplied is sensitive to changes in the price of that good
B. That quantity demanded is insensitive to changes in the price of that good
C. the quantity demanded is sensitive to changes in the price of that good
D. the quantity supplied is incentive to changes in the price of that good
E. None of these
The demand for which of the following is likely to be the most price inelastic ?
The demand for which of the following is likely to be the most price inelastic ?
A. transportation
B. taxi rides
C. bus tickets
D. airline tickets
The price elasticity of demand is defined as ?
The price elasticity of demand is defined as ?
A. the percentage change in the quantity demanded divided by the percentage change in income.
B. the percentage change in income divided by the percentage change in the quantity demanded
C. the percentage change in the quantity demanded of a good divided by the percentage change in the price of that good
D. none of these answers
If consumers think that there are very few substitutes for a good, then ?
If consumers think that there are very few substitutes for a good, then ?
A. Supply would tend to be price elastic
B. none of these answers
C. demand would tend to be price inelastic
D. demand would tend to be price elastic
If demand is linear (a straight line) then price elasticity of demand is ?
If demand is linear (a straight line) then price elasticity of demand is ?
A. elastic in the upper portion and inelastic in the lower portion
B. inelastic in the upper portion and elastic in the lower portion
C. inelastic throughout
D. constant along the demand curve
Suppose that at a price of Rs 30 per month there are 30000 subscribers to cable television in small Town. If small Town Cablevision raise its price to Rs 40 per month the number of subscribers will fall to 20000 At which of the following price does small Town Cablevision earn the greatest total revenue ?
Suppose that at a price of Rs 30 per month there are 30000 subscribers to cable television in small Town. If small Town Cablevision raise its price to Rs 40 per month the number of subscribers will fall to 20000 At which of the following price does small Town Cablevision earn the greatest total revenue ?
A. Rs 0 per month
B. Rs 30 per month
C. Rs 40 per month
D. Either Rs 30 or Rs 40 per month because the price elasticity of demand is 1.0