Man 615 Test two

.docx

School

Eastern Gateway Community College *

*We aren’t endorsed by this school

Course

MANAGERIAL

Subject

Economics

Date

Apr 3, 2024

Type

docx

Pages

Uploaded by bigAman55 on coursehero.com

If potatoes are inferior goods, which of the following will increase the demand for potatoes? Increase in the price of a complement Decrease in income Decrease in the price of a substitute Increase in income Question 2 1 / 1 point The owner of a bakery decides to drop the price of lemon cakes by 5%, how much does quantity sold have to rise to stop the revenue from decreasing 2% 3% 4% 5% Question 3 1 / 1 point If the current margin is greater than the desired margin, the firm should Increase price Decrease price Not change the price Marginal revenue and marginal cost are both zero Question 4 1 / 1 point What is an aggregate demand curve The demand of an individual with respect to price The total demand of the market with respect to price of a good The preference of an individual in the market None of the above

Question 5 1 / 1 point The price elasticity of demand tells us about The sensitivity of price to quantity The sensitivity of quantity to price The sensitivity of income to price The sensitivity of income to quantity Question 6 1 / 1 point Ingrid's Ice cream Parlor has an own price elasticity of 5. It has an approximate share of 10% in the market for ice cream. What is the aggregate own price elasticity of the market? 0.1% 0.5% 0.7% 1% Question 7 1 / 1 point A research firm's findings concluded that the demand for movie tickets is price elastic in the afternoon but inelastic in the evenings. Given this information, to increase overall revenue the theatre owners should Reduce the ticket prices for the afternoon shows and reduce the ticket prices for the evening shows Increase the ticket prices for the afternoon shows and reduce the ticket prices for the evening shows Reduce the ticket prices for the afternoon shows and increase the ticket prices for the evening shows Increase the ticket prices for the afternoon shows and increase the ticket prices for the evening shows Question 8 0 / 1 point As the price of video games is raised from $20to $25, their quantity demanded fell from 1.5 million copies to 1 million copies. The price elasticity of demand for video games is: -0.55

-1.8 -1.33 -2.08 Question 9 1 / 1 point Jim recently graduated from college. His income increased dramatically;from$5000 a year to $60,000 a year. Jim decides that instead of using the bus, he would buy a car. This implies that The car is a normal goods for Jim The car is an inferior goods for Jim The bus and the car are complementary for Jim Need information on the price of cars Question 10 1 / 1 point Which of the following statements is true A firm should increase quantity as long as average cost is greater than price A firm should increase quantity as long as price is greater than marginal cost A firm should increase quantity as long as price is higher than average cost, regardless of the marginal cost A firm should increase quantity as long as marginal cost is greater than price Question 11 1 / 1 point For substitutes, cross price elasticity of demand is: Negative Positive between zero and one only zero. Question 12 1 / 1 point Jim has estimated elasticity of demand for gasoline to be -0.7 in the short-run and -1.8 in the long run. A decrease in taxes on gasoline would:

lower tax revenue in both the short and long run. raise tax revenue in both the short and long run. raise tax revenue in the short run but lower tax revenue in the long run. lower tax revenue in the short run but raise tax revenue in the long run. Question 13 0 / 1 point If the current margin is greater than the desired margin, the firm should Increase production Decrease production Not change production level Production ceases Question 14 1 / 1 point What criteria do consumers apply when deciding whether or not to consume The consumer would consume only if the price is lower than his highest willingness to pay The consumer would only consume if his surplus is greater than zero The consumer would only consume if the price is higher than his highest willingness to pay Both A&B Question 15 0 / 1 point A product can be classified as an inferior good if an increase in the income causes A decrease in the quantity demanded A decrease in demand An increase in demand An increase in the quantity demanded. Question 16 1 / 1 point

Which of the following would shift the supply of Florida Oranges to the left? a hurricane in Florida destroying a major part of the crop an increase in the price of water per unit, a major input, used to irrigate the orange trees one of the orange grooves shuts down all of the above Question 17 1 / 1 point Excess supply of a product exerts ______pressure on prices Zero No Upward Downward Question 18 1 / 1 point Peter's Pizzeria sells both pizzas and wings. It wants to increase the sales of its pizzas. Assuming that the pizza and the wings are complements, which of these strategies can it employ? Increase the price of the wings Decrease the price of the wings Increase the quality of the pizza Both B & C Question 19 1 / 1 point A market maker faces the following demand and supply for widgets. Eleven buyers are willing to buy at the following prices: $15, $14, $13, $12, $11, $10, $9, $8, $7, $6, $5. Eleven sellers are also willing to sell at the same prices. If the market maker decides to only make one transaction what is his profit/bid-ask margin $8 $10

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

Recommended textbooks for you

Survey Of Economics

Economics

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Cengage,

MACROECONOMICS FOR TODAY

Economics

ISBN:9781337613057

Author:Tucker

Publisher:CENGAGE L

Micro Economics For Today

Economics

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Cengage,

Economics For Today

Economics

ISBN:9781337613040

Author:Tucker

Publisher:Cengage Learning

Managerial Economics: A Problem Solving Approach

Economics

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Cengage Learning

Microeconomics

Economics

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Cengage Learning

SEE MORE TEXTBOOKS

Recommended textbooks for you

Survey Of Economics
Economics
ISBN:9781337111522
Author:Tucker, Irvin B.
Publisher:Cengage,
MACROECONOMICS FOR TODAY
Economics
ISBN:9781337613057
Author:Tucker
Publisher:CENGAGE L
Micro Economics For Today
Economics
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Cengage,
Economics For Today
Economics
ISBN:9781337613040
Author:Tucker
Publisher:Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
Microeconomics
Economics
ISBN:9781337617406
Author:Roger A. Arnold
Publisher:Cengage Learning