Absolute value of elasticity along a linear demand curve decreases from left to right.
11. Question 11 Absolute value of elasticity along a linear demand curve decreases from left to right. 1 point True False
The price of potatoes is $5 and the equilibrium quantity is 250. Now, the government imposes an excise tax of $1.50 on potatoes. The quantity demanded at the new equilibrium is 200. The tax revenue for the government as a result of this tax is $300.
9. Question 9 The price of potatoes is $5 and the equilibrium quantity is 250. Now, the government imposes an excise tax of $1.50 on potatoes. The quantity demanded at…
Assuming upward sloping supply curve and downward sloping demand curve, imposition of an excise tax has which of the following effects on the equilibrium price of a good?
8. Question 8 Assuming upward sloping supply curve and downward sloping demand curve, imposition of an excise tax has which of the following effects on the equilibrium price of a…
The price of a product changes from $8 to $9, and as a result, the quantity of the product demanded falls from 20 to 15. What do you know about the price elasticity of this good?
1. Question 1 The price of a product changes from $8 to $9, and as a result, the quantity of the product demanded falls from 20 to 15. What do…
A price floor is a government mandated minimum price in a market, and a price ceiling is a government mandated maximum price in a market.
7. Question 7 A price floor is a government mandated minimum price in a market, and a price ceiling is a government mandated maximum price in a market. 1 point…
Imposition of an excise tax on a good has what effect on the supply curve of a good?
5. Question 5 Imposition of an excise tax on a good has what effect on the supply curve of a good? 1 point Supply curve shifts to the left…
The price of good X increases by 50%, and the consumption of good X decreases by 25%. What is the absolute value of price elasticity of demand of X?
3. Question 3 The price of good X increases by 50%, and the consumption of good X decreases by 25%. What is the absolute value of price elasticity of demand…
Imagine there is an innovation that allows milk cows to double their daily production of fluid milk. When we consider the market for milk, which of the following can we anticipate?
4. Question 4 Imagine there is an innovation that allows milk cows to double their daily production of fluid milk. When we consider the market for milk, which of the…
Consider the market for oil. Suppose a war breaks out in a country that is a large supplier of oil, and the war shuts down production of all oil in this country. Which of the following can we anticipate will occur?
2. Question 2 Consider the market for oil. Suppose a war breaks out in a country that is a large supplier of oil, and the war shuts down production of…
Movement along a demand curve from left to right is known as an increase in demand.
10. Question 10 Movement along a demand curve from left to right is known as an increase in demand. 1 point True False
