Supply and Demand

If the quantity demanded of beef increases by 5% when the price of chicken increase by 20% the cross-price elasticity of demand between beef and chicken is ? A. -4B. 0.25 C. 4 D. -0.25

The price of burgers increase by 22% and the quantity of burgers demanded falls by 25% This indicates that demand for burgers is ____________? A. elastic B. perfectly elastic C. unitarily elastic D. inelastic.

The price elasticity of demand is the ? A. ratio of the change in price to the change in quantity demanded.B. ratio of the percentage change in quantity demanded to the percentage change in price. C. ratio of the change in quantity demanded to the change in price. D. ratio of the percentage change in…

Market equilibrium exists when _________ at the prevailing price? A. quantity demanded equals quantity supplied B. quantity demanded is less than quantity supplied C. quantity supplied is greater than quantity demanded D. quantity demanded is greater than quantity supplied

The price of computer chips used in the manufacture of personal computers has fallen. This will lead to _________ personal computer? A. a decrease in the quantity supplied of B. a decrease in the supply of C. an increase in the quantity supplied ofD. an increase in the supply of

Which of the following will NOT cause a shift in the demand curve for compact discs ? A. A change in wealthB. A change in the price of compact discs C. A change in income. A change in the price of pre-recorded cassette tapes

Suppose the demand for good Z goes up when the price of good Y goes down. We can say that goods Z and Y are ? A. perfect substitutesB. complements C. unrelated goods. D. substitutes.

Demand curves are derived while holding constant ? A. incomes, tastes, and the price of other goods. B. income, tastes, and the price of the good. C. income and tastes D. tastes and the price of other goods

What effect is working when the price of a good falls and consumers tend to buy it instead of other goods ? A. The ceteris paribus effect B. The diminishing marginal utility effect.C. The substitution effect D. The income effect

The law of demand implies that ? A. as prices rise, demand decreaseB. as prices fall, quantity demanded increase C. as prices fall demand increases D. as prices rise, quantity demanded increases