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41201Jeans in general have fewer close substitutes than a specific brand of jeans. Therefore, the demand for jeans in general will be __ than the demand for a specific brand of jeans.

41202All else equal, the price elasticity of demand for a good tends to be lower:

41203Suppose the price of a Snickers candy bar is $2.00 at both the airport and the grocery store. The price elasticity of demand for a Snickers candy bar at an airport is likely to be __ the price elasticity of demand for a Snickers candy bar at the grocery s

41204Suppose the company that owns the vending machines on your campus has doubled the price of a can of soda. If they then still sell almost the same number of sodas per day, this suggests:

41205Suppose the company that owns the vending machines on your campus has doubled the price of a can of soda. They then notice that they are selling approximately 15% fewer sodas. The price elasticity of demand for sodas from the campus vending machines, ther

41206If consumers cannot readily switch to a close substitute when the price of a good increases, the demand for that good is likely to be:

41207When the demand for a good is inelastic, that good is likely to have:

41208If consumers can easily switch to a close substitute when the price of a good increases, demand for that good is likely to be:

41209If the demand for a good is highly elastic, that good is likely to have:

41210If the percentage change in the price of a good is equal to the percentage change in the quantity demanded of that good, then the demand for that good is:

41211Suppose a 10% increase in the price of aspirin leads to a 5% decrease in the quantity demanded of aspirin. The demand for aspirin, therefore, is

41212If consumers respond to a 10% price reduction by buying twice as much of a particular good, we would conclude that:

41213If the percentage change in the price of a good is less than the resulting percentage change in the quantity demanded of that good, then the demand for that good is:

41214If the price elasticity of demand for a good equals one, then the demand for that good is:

41215The demand for a good is unit elastic with respect to price if the price elasticity of demand is:

41216The demand for a good is inelastic with respect to price if the price elasticity of demand is:

41217If the price elasticity of demand for a good is greater than one, then the demand for that good is:

41218The demand for a good is elastic if the price elasticity of demand is:

41219If the price elasticity of demand for chicken is 2, then a 20% decrease in the price of chicken will lead to a:

41220If the price elasticity of demand for pineapples is 0.75, then a 4% increase in the price of pineapples will lead to a:

41221If a 10% decrease in the price of a good leads to a 20% increase in the quantity demanded, then what is the price elasticity of demand?

41222If 20% increase in the price of a good leads to a 60% decrease in the quantity demanded, then what is the price elasticity of demand?

41223If the absolute value of the price elasticity of demand for tickets to a football game is 2, then if the price increases by 1%, quantity demanded decreases by:

41224The price elasticity of demand is typically expressed as a positive number because:

41225The percentage change in quantity demanded that results from a 1 percent change in price is known as the:

41226The price elasticity of demand is a measure of:

41227The price elasticity of demand for a good measures the responsiveness of:

41228In 1985 a desert community stopped pumping water from a 1000 foot well because it had run dry. In 2005 the price of water doubled. The community then drilled the well deeper and started pumping again. In this community,

41229Antony’s Pizza uses the same dough, sauce, and cheese for pizza and calzones. When the price of pizza is low Antony produces more calzones. For Antony, the supply of pizza is __ compared to the supply at a pizza restaurant that does not serve calzones.

41230It takes many years to train to become an orthopedic surgeon. This suggests that, in the short run, a sudden increase in the demand for orthopedic surgeons will:

41231Refer to the figure below. What is the price elasticity of supply at point A?

41232If a one percent increase in the price of oranges leads to a five percent increase in the quantity supplied, the price elasticity of supply for oranges is __.

41233The price elasticity of supply at a point is:

41234The percentage change in quantity supplied that results from a 1 percent change in price is known as the:

41235If the income elasticity for a particular good is negative, then:

41236A change in consumers’ incomes causes a change in:

41237During recessions, when some workers lose their jobs and have lower incomes, sales of durable goods (goods with a life expectancy of 3 years or more) decline. Apparently, durable goods are:

41238The responsiveness of the quantity demanded of one good to a change in the price of a different good is measured by the:

41239At a price of $20 each, the demand for t-shirts from a group’s fundraising activity is unit elastic. Thus, the group’s total revenue from selling t-shirts __ at a price of $20 each.

41240Suppose that total expenditures for coffee reach a maximum at a price of $5 per pound. At this price, the demand for coffee is:

41241If Jane can produce 3 pairs of shoes per hour, while Bob can produce 2, then __ has a(n) ____ advantage in producing shoes.

41242If a nation has the lowest opportunity cost of producing a good, that nation has a(n) ______ in the production of that good.

41243If a nation can produce a more computers per year than any other nation, that nation has a(n) ______ advantage in the production of computers.

41244Refer to the figure above. Assume that column A and column B are the initial demand and supply curves. At a price of $50, the market would experience:

41245Refer to the figure above. Assume that column A and column B are the initial demand and supply curves. At a price of $30, the market would experience:

41246Refer to the table above. Relative to column A, it appears that column B represents __.

41247Refer to the figure above. A decrease in supply is represented by shifting from:

41248Refer to the figure above. A decrease in demand is represented by shifting from:

41249Refer to the figure above. Suppose the coffee lobby convinced the legislature to impose a price control requiring that coffee prices must be at least $2.50, and that the original demand curve and original supply curve were applicable. The most likely resu

41250Refer to the figure above. In this market, if all buyers’ reservation prices for a cup of coffee increased by $1.00；A.the equilibrium price would not change.

41251Refer to the figure above. Suppose that retailers learn that a new Shrek movie will be released next month. That news is likely to cause:

41252What might cause a supply function to shift to the left today?

41253A decrease in the demand for bananas with no concurrent change in the supply of bananas will result in a __ equilibrium price and a(n equilibrium quantity.

41254Refer to the figure above. Moving from demand curve D1 to demand curve D2 could be caused by a(n):

41255Refer to the figure above. Moving from demand curve D2 to demand curve D1 could be caused by a(n):

41256Refer to the figure above. Moving from demand curve D1 to demand curve D2 illustrates a(n):

41257Suppose that a disease that affects people who consume beef has been discovered in the United States. One likely result is:

41258Refer to the figure above. Demand for coffee last Monday is shown in bold and labeled D(Monday). On Tuesday, the news featured a story explaining that the coffee crop has been contaminated with disease-causing bacteria. The following week:

41259Refer to the figure above. Demand for coffee last Monday is shown in bold and labeled D(Monday). On Tuesday, the news featured a story about a storm that wiped out the entire coffee crop in Brazil. On Wednesday:

41260At the beginning of the fall semester, college towns experience large increases in their populations, causing a(n):

41261Suppose that the price of doughnuts decreases and that doughnut-holes are a by-product of producing doughnuts. One would expect:

41262Suppose one could either rent a car or take a train to travel to Chicago from Washington, D.C. If the price of train tickets increases:

41263As consumers’ incomes increase, the demand for ground beef decreases. Ground beef is called a(n):

41264A decrease in the price of pizza will cause a(n):

41265Whether or not a good can be classified as a complement depends on whether；A.no substitutes exist.

41266If the price of computers increases and the demand for monitors decreases as a result, then:

41267If the demand for steak increases as income increases, this means that steak is a(n):

41268What might cause a demand function to shift to the right?

41269If the demand for a good decreases as income decreases, it is a(n):

41270A movement along a demand curve from one price-quantity combination to another is called:

41271In a market where government has set the maximum price below the equilibrium price, one might expect:

41272A regulated maximum price that is above the equilibrium price:

41273Which of the following is NOT a characteristic of governmental rent controls?

41274Refer to the figure above. Now suppose that the government imposes a price ceiling of $40. What is the most likely result?

41275Refer to the figure above. Suppose all the sellers in this market started out charging a price of $45 per unit. What is the most likely result?

41276Refer to the figure above. At a price of $20:

41277You have noticed that there is a persistent shortage of teachers in an inner-city school district in your state. Based on this observation, you suspect that:

41278When a market is not in equilibrium:

41279In a free market, if the price of a good is above the equilibrium price, then；A.suppliers, dissatisfied with growing inventories, will raise the price.

41280In a free market, if the price of a good is below the equilibrium price, then；A.suppliers, dissatisfied with growing inventories, will lower the price.

41281When the price of a good is below its equilibrium value:

41282You notice that your grocery store always has day-old bakery products at a reduced price. Why might that be?

41283Refer to the figure above. At a price of $3, the market will experience _ in the amount of _ units.

41284Refer to the figure above. At a price of $9, the market will experience _ in the amount of _ units.

41285A shortage occurs when:

41286A market in disequilibrium would feature:

41287Which of the following is NOT a characteristic of a market in equilibrium?

41288A market comprised of a downward-sloping demand curve that intersects an upward-sloping supply curve is said to be stable because:

41289A seller’s reservation price is generally equal to:

41290Suppose that the market price for hot dogs sold by street vendors has just risen from $4.50 to $5, and that Curly has now begun operating a hot dog cart. We can assume that:

41291Jessica’s marginal cost for producing a pitcher of lemonade is $0.25. Therefore, $0.25 can also be called her:

41292As the price of a good rises:

41293When a slice of pizza at the student union sold for $2, Moe did not purchase any. When the price fell to $1.75, Moe purchased a slice each day for lunch. Moe’s reservation price for a slice of pizza must be:

41294Gertie saw a pair of jeans that she was willing to buy for $35. The price tag, though, said they were $29.99. Therefore:

41295Shelly purchases a leather purse for $400. One can infer that:

41296The buyer’s reservation price of a particular good or service is the:

41297The quantity of Revlon nail polish demanded by Jen decreased after the price of Revlon nail polish increased. Jen decides to find a cheaper brand of nail polish. This is called a(n):

41298A demand curve is _ sloping because _.

41299Which of the following is NOT true of a demand curve?

41300”Holding all other relevant factors constant, consumers will purchase more of a good as the price falls.” This statement reflects the behavior underlying:

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