5 Written Questions
5 Matching Questions
- In which of the following market structures is there clear-cut mutual interdependence with respect to price-output policies?
- If the demand for farm products is price inelastic, a good harvest will cause farm revenues to:
- The demand for a necessity whose cost is a small portion of one's total income is:
- The process by which new firms and new products replace existing dominant firms and products is called:
- What do the income effect, the substitution effect, and diminishing marginal utility have in common?
- a creative destruction.
- b oligopoly
- c They all help explain the downsloping demand curve.
- d decrease
- e relatively price inelastic.
5 Multiple Choice Questions
- Josh will only be happy with that salary if his cost of living has not increased.
- Goods for which the income elasticity coefficient is relatively high and positive.
- diminishing marginal utility.
- Alex's behavior is consistent with the endowment effect.
- and industry output will be less than the initial price and output.
5 True/False Questions
A supply curve that is a vertical straight line indicates that: → a change in price will have no effect on the quantity supplied.
If a firm can sell 3,000 units of product A at $10 per unit and 5,000 at $8, then: → the price elasticity of demand is 2.25.
If for a firm P = minimum ATC = MC, then: → both allocative efficiency and productive efficiency are being achieved.
The price elasticity of demand coefficient measures: → demand is elastic at high prices.
The demand for autos is likely to be: → to firms in all types of industries.