35) Rank these three items in terms of the elasticity of the demand for them at any given price, from most elastic to least elastic: hot beverages, coffee and Peet's Coffee. A) hot beverages, coffee, Peet's Coffee B) Peet's Coffee, coffee, hot beverages C) coffee, Peet's Coffee, hot beverages D) coffee, hot beverages, Peet's Coffee
35) Rank these three items in terms of the elasticity of the demand for them at any given price, from most elastic to least elastic: hot beverages, coffee and Peet's Coffee. A) hot beverages, coffee, Peet's Coffee B) Peet's Coffee, coffee, hot beverages C) coffee, Peet's Coffee, hot beverages D) coffee, hot beverages, Peet's Coffee
Chapter6: Elasticities
Section: Chapter Questions
Problem 1P
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Transcribed Image Text:35) Rank these three items in terms of the elasticity of the
demand for them at any given price, from most elastic to least
elastic: hot beverages, coffee and Peet's Coffee.
A) hot beverages, coffee, Peet's Coffee
B) Peet's Coffee, coffee, hot beverages
C) coffee, Peet's Coffee, hot beverages
D) coffee, hot beverages, Peet's Coffee
36) The most important determinant of the price elasticity of
demand for a good is
A) the definition of the market for a good.
B) the availability of substitutes for the good.
C) the share of the good in the consumer's budget.
D) whether the good is a necessity or a luxury.
37) Total revenue is equal to
A) the amount of funds earned by a firm minus its costs of
production.
B) the total quantity sold of a product over a given period of
time.
C) the price of a product multiplied by the number of units of
the product sold.
D) the monetary value of the capital (for example, plant and
equipment) a firm owns.
38) If a firm raised its price and discovered that its total revenue
fell, then the demand for its product is
A) relatively inelastic.
B) relatively elastic.
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