![Microeconomics For Today (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781305507111/9781305507111_largeCoverImage.gif)
Microeconomics For Today (MindTap Course List)
9th Edition
ISBN: 9781305507111
Author: Irvin B. Tucker
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 5, Problem 9SQ
To determine
Reasons why the
Expert Solution & Answer
![Check Mark](/static/check-mark.png)
Want to see the full answer?
Check out a sample textbook solution![Blurred answer](/static/blurred-answer.jpg)
Students have asked these similar questions
For a particular good, a 10 percent increase in price causes a 3 percent decrease in quantity demanded. Which of the following statements is most likely applicable to this good?
a.Ā Ā Ā Ā Ā Ā Ā The relevant time horizon is short.Ā Ā
b.Ā Ā Ā Ā Ā Ā The good is aĀ luxury.Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā
c.Ā Ā Ā Ā Ā Ā Ā The market for the good is narrowlyĀ defined.Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā
d.Ā Ā Ā Ā Ā Ā There are many close substitutes for thisĀ good.Ā Ā Ā Ā Ā Ā Ā Ā Ā
Selected Answer:
C.Ā
C
The demand for a good will be less price elastic,
Select one:
a.Ā The larger is the percentage of income spent on it
b.Ā The higher is its price
c.Ā The smaller the supply of the good
d.Ā The fewer the substitutes available for the good
e.Ā The fewer there are complements for the good
For a particular good, 10% increase in price causes a 5% decrease in quantity demanded. Which of the following statements
is most likely applicable to this good?
a. The good is a luxury
b. The market for the good is broadly defined
c. there are many close substitutes for this good
d. The relevant time horizon is long
Chapter 5 Solutions
Microeconomics For Today (MindTap Course List)
Ch. 5.3 - According to the previous discussion, what factors...Ch. 5 - If the price of a good or service increases and...Ch. 5 - Prob. 2SQPCh. 5 - Prob. 3SQPCh. 5 - Prob. 4SQPCh. 5 - Suppose a university raises its tuition from 3,000...Ch. 5 - Prob. 6SQPCh. 5 - Suppose a movie theater raises the price of...Ch. 5 - Charles loves Mello Yello and will spend 10 per...Ch. 5 - Prob. 9SQP
Ch. 5 - Prob. 10SQPCh. 5 - Prob. 11SQPCh. 5 - Prob. 12SQPCh. 5 - Prob. 13SQPCh. 5 - Consider the following supply schedule: What is...Ch. 5 - Prob. 15SQPCh. 5 - Prob. 16SQPCh. 5 - Prob. 1SQCh. 5 - Prob. 2SQCh. 5 - Prob. 3SQCh. 5 - Prob. 4SQCh. 5 - Prob. 5SQCh. 5 - Prob. 6SQCh. 5 - Prob. 7SQCh. 5 - Prob. 8SQCh. 5 - Prob. 9SQCh. 5 - Prob. 10SQCh. 5 - Prob. 11SQCh. 5 - If bus travel is an inferior good, its income...Ch. 5 - Prob. 13SQCh. 5 - If automobiles and gasoline are complements, then...Ch. 5 - Suppose that when price is 10, quantity supplied...Ch. 5 - Prob. 16SQCh. 5 - Prob. 17SQCh. 5 - Prob. 18SQCh. 5 - Prob. 19SQCh. 5 - Prob. 20SQ
Knowledge Booster
Similar questions
- For a particular good, a 12 percent increase in price causes a 24 percent decrease in quantity demanded. Which of the following statements is most likely applicable to this good? a. The good is a luxury. b. There are not many substitutes for this good. c. The relevant time horizon is short. d. The market for the good is broadly defined.arrow_forwardFor a particular good, a 2 percent increase in price causes a 12 percent decrease in quantity demanded. Which of the following statements is most likely applicable to this good? A. the good is a luxury B. the market for the good is broadly defined C. the relevant time horizon is short D. there are no good substitutes for this goodarrow_forwardWhich of the following statements is not true? Ā a. When price elasticity of demand is very high, we say there is brand loyalty. Ā Ā b. Price elasticity of demand for basic foods is low. Ā Ā c. When goods have very low prices, the elasticity of demand is usually quite low. Ā Ā d. The availability and price of substitutes affect the elasticity of demand for a good or servicearrow_forward
- Q.3 If a product has many substitutes, which of the following statements is correct? Select one: a.It is likely that its cross price elasticity is close to -3. b. It is likely that it is a normal good. c. It is likely that its supply elasticity is low. d. It is likely that its price elasticity of demand is very low. e. None of the above.arrow_forwardWhen consumers face rising gasoline prices, they typicallyĀ A. reduce their quantity demanded more in the short run than in the long run.B. reduce their quantity demanded more in the long run than in the short run.C. do not reduce their quantity demanded in the short run or the long run.D. increase their quantity demanded in the short run but reduce their quantity demanded in the long run.E. None of the above .arrow_forwardWhich of the following statements is true? a. The more substitutes there are for a good the more inelastic will be its demand. b. If a good is largely purchased by the wealthy it tends to be elastic. c. The more time that has elapsed since a price change, the more elastic the demand will be for that good. d. All of the above are correct. e. Both a and b are correct. f. Both a and c are correct. g. Both b and c are correct. h. None of the above is correct.arrow_forward
- If an increase in the supply of good A increases the demand for good B, then A. A and B are substitutes. B. the elasticity of supply for good A is greater than 1. C. A and B are complements. D. the demand for A is price elastic. E. the cross elasticity of supply for good B with respect to the price of good A is positive.arrow_forwardA given change in supply will yield a larger change in the quantity demanded the _____ Ā a. more plentiful are substitutes for the good. b. longer the time frame under consideration. c. larger the percent of income spent on the good of interest. d. all of these answers are correct.arrow_forwardWhich of the following is one of the factors determining if demand for a good is price elastic or price inelastic? Select one: a. The cost of the resources used in producing the good. b. The relative share of the budget spent on the good. c. Whether the good is a substitute or a complement. d. Whether the good is imported or exported.arrow_forward
- Give one reason for decrease in supply of a goodarrow_forwardHow will the elasticity of demand be affected in the following cases? A. More substitutes become available. B. The income elasticity decreases.arrow_forwardAssume that imitation gemstones (an inferior good) are a low-cost alternative to diamonds (a normal good). What happens when average incomes increase? A. The demand for diamonds increases, and the demand for imitation gemstones decreases. B. The demand for diamonds decreases, and the demand for imitation gemstones increases. C. The demand for both diamonds and imitation gemstones increases. D. The demand for both diamonds and imitation gemstones decreases.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Principles of Economics (12th Edition)EconomicsISBN:9780134078779Author:Karl E. Case, Ray C. Fair, Sharon E. OsterPublisher:PEARSONEngineering Economy (17th Edition)EconomicsISBN:9780134870069Author:William G. Sullivan, Elin M. Wicks, C. Patrick KoellingPublisher:PEARSON
- Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage LearningManagerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage LearningManagerial Economics & Business Strategy (Mcgraw-...EconomicsISBN:9781259290619Author:Michael Baye, Jeff PrincePublisher:McGraw-Hill Education
![Text book image](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Text book image](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
Principles of Economics (12th Edition)
Economics
ISBN:9780134078779
Author:Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:PEARSON
![Text book image](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
Engineering Economy (17th Edition)
Economics
ISBN:9780134870069
Author:William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:PEARSON
![Text book image](https://www.bartleby.com/isbn_cover_images/9781305585126/9781305585126_smallCoverImage.gif)
Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning
![Text book image](https://www.bartleby.com/isbn_cover_images/9781337106665/9781337106665_smallCoverImage.gif)
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
![Text book image](https://www.bartleby.com/isbn_cover_images/9781259290619/9781259290619_smallCoverImage.gif)
Managerial Economics & Business Strategy (Mcgraw-...
Economics
ISBN:9781259290619
Author:Michael Baye, Jeff Prince
Publisher:McGraw-Hill Education