Question 31 of 50

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?

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: