Reading 8: Topics in Demand and Supply Analysis

Which of the following best describes own-price elasticity of demand?

If the price of a product increases by 10 percent and the quantity demanded decreases by 5 percent, the demand for the product is best described as:

Given the demand function Q = 100 - 2P, what is the price elasticity of demand when the price is 20?

Which of the following factors would most likely result in a good having highly elastic demand?

Total revenue is maximized at the price and quantity combination where the price elasticity of demand is:

If the income elasticity of demand for a good is negative, the good is classified as:

A cross-price elasticity of demand of 0.25 between two goods suggests that they are:

In the case of a perfectly elastic demand curve, the demand curve is:

Assuming a linear demand curve, at prices above the point of unitary elasticity, demand is:

Calculate the income elasticity of demand if income increases from 40,000 dollars to 44,000 dollars and quantity demanded increases from 10 units to 11 units.

If a 1 percent increase in the price of Good A leads to a 0.5 percent decrease in the quantity demanded of Good B, Good A and Good B are:

Consider a demand function Q = 50 - 2P. At a price of 15, the quantity demanded is 20. What is the price elasticity of demand?

When the price of a good falls, the substitution effect:

For a normal good, the income effect of a price decrease:

A good is considered an inferior good if:

A Giffen good is best described as an inferior good where:

A Veblen good is characterized by:

If a 10 percent increase in income leads to a 5 percent increase in the quantity demanded of a good, the good is:

In the context of production, the short run is defined as:

Diminishing marginal returns occur when:

The marginal product of labor is best defined as:

Under perfect competition, a firm's breakeven point occurs when price equals:

A firm should shut down in the short run if total revenue is less than:

In the long run, a firm should shut down if price is less than:

Economies of scale are indicated by:

Which of the following is most likely a cause of diseconomies of scale?

The minimum efficient scale is defined as:

A firm has total revenue of 100,000 dollars, total variable costs of 70,000 dollars, and total fixed costs of 40,000 dollars. In the short run, the firm should:

If a firm in perfect competition is making an economic profit of zero, it is operating at:

The slope of the demand curve is -0.5. At a price of 20 and quantity of 10, what is the price elasticity of demand?

If a firm increases all inputs by 10 percent and output increases by 15 percent, the firm is experiencing:

Demand is said to be elastic when the absolute value of the price elasticity of demand is:

For a price-taker firm, marginal revenue is equal to:

If a good has a price elasticity of -1.5, a 10 percent increase in price will result in:

Which of the following is NOT a factor of production?

Assume the demand function for gasoline is QD = 100 - 5P. If the price is 4, what is the quantity demanded?

When the price of a good increases, the substitution effect leads consumers to:

Assuming a linear demand curve, at the midpoint where elasticity is -1, marginal revenue is:

A firm operating with economies of scale can increase competitiveness by:

Which of the following goods is most likely to exhibit a positive income elasticity of demand?

If a firm has fixed costs of 1,000 dollars and variable costs of 500 dollars, and total revenue is 800 dollars, the firm should:

The upward-sloping segment of the long-run average total cost curve indicates:

If the price of Brand A increases and the demand for Brand B increases, the cross-price elasticity of demand is:

For a price searcher firm (imperfect competition), the breakeven quantity is where:

If income rises from 50,000 dollars to 55,000 dollars and quantity demanded for a good falls from 20 to 18, the income elasticity is:

Which of the following is an example of a factor that leads to economies of scale?

Total product is maximized when marginal product is:

The demand curve for a Giffen good is:

With respect to the production function, in the short run:

A firm's profit is maximized when: