.25 per question answered
1. The price elasticity of demand reflects the responsiveness of:
2. Suppose that you see the same number of movies every month no matter what happens to the price of movies. This suggests that your demand for movies is:
3. If a product is a necessity and has no substitutes at all, demand for the product is most likely to be:
4. Other things being equal, if more alternative energies are available, we would expect the demand for gasoline to be:
5. If a product has a large number of excellent substitutes, demand for the product is most likely to be:
6. If consumers have a long time to respond to an increase in electricity prices their demand is likely to be ________ than if they are only given a short time.
7. Demand for low budget items, such as candy, is generally ________ than demand for large budget items, such as automobiles.
8. The price elasticity of demand increases as:
9. In wealthy countries such as the United States, the price elasticity of the demand for food is ________ it is in poorer countries.
10. If, regardless of price, the quantity demanded is a constant amount, then the demand curve is:
11. Firms like to know the price elasticity of demand because it determines how price changes affect:
12. Suppose we observe that as a firm increases its price its total revenue decreases. What do we know?
13. The supply curve will be more elastic when:
14. Adam Smith taught that individual buyers and sellers who act in their own self interest frequently promote society's interest. What assumption is needed for society's interest to be promoted?
15. If a consumer buys a good we know that her willingness to pay:
16. Suppose that the supply of gasoline increases. Price will ________ and consumer surplus will ________.
17. Producer surplus is defined as:
18. Suppose that the price of macaroni drops. Quantity supplied will ________ and producer surplus will ________.
19. Economists call the phenomenon that leads individual consumers and producers to the market equilibrium:
20. In order to correct mismatches between supply and demand, experts in a planned economy might set prices by:
21. If the government imposes a maximum price on rental apartments that is below the equilibrium price, we can expect to see:
22. Refer to Figure 7.4. If consumers currently gain at the expense of producers, a maximum price must have been set at:
23. An import restriction ________ the market price and ________ the total surplus of the market.
24. Suppose that the government imposes a ban on imported sugar, and the price of sugar sold in the country does not increase. The most likely explanation is that:
25. A ban on imports will ________ the price domestic consumers pay for the