Here\'s the second part to my Econ study guide. Thanks for the help! 12. Holding
ID: 1216287 • Letter: H
Question
Here's the second part to my Econ study guide. Thanks for the help!
12. Holding all other forces constant, if increasing the price of a good leads to an increase in total revenue, then the demand for the good must be
A. unit elastic.
B. inelastic.
C. elastic.
D. None of the above is correct because a price increase always leads to an increase in total revenue.
13. Holding all other forces constant, if increasing the price of a good leads to a decrease in total revenue, then the demand for the good must be
A. unit elastic.
B. inelastic.
C. elastic.
D. None of the above is correct because a price increase always leads to an decrease in total revenue.
14. A good will have a more elastic demand, the
A. greater the availability of close substitutes.
B. more broad the definition of the market.
C. shorter the period of time.
D. more it is regarded as a necessity.
15. A price ceiling is
A. often imposed on markets in which “cutthroat competition” would prevail without a price ceiling.
B. a legal maximum on the price at which a good can be sold.
C. often imposed when sellers of a good are successful in their attempts to convince the government that the market outcome is unfair without a price ceiling.
D. All of the above are correct.
16. If a price ceiling is not binding, then
A. there will be a surplus in the market.
B. there will be a shortage in the market.
C. the market will be less efficient than it would be without the price ceiling.
D. there will be no effect on the market price or quantity sold.
17. Under rent control, tenants can expect
A. lower rent and higher quality housing.
B. lower rent and lower quality housing.
C. higher rent and a shortage of rental housing.
D. higher rent and a surplus of rental housing.
18. The minimum wage is an example of a
A. price ceiling.
B. price floor.
C. wage subsidy.
D. tax.
19. Suppose buyers of computers and printers regard the two goods as complements. Then an increase in the price of computers will cause a(n)
A. decrease in the demand for printers
B. in the supply of printers.
C. increase in demand for printers
D. increase in supply of printers
20. Suppose incomes increase in the economy, and the number of sellers of logo shirts also increase. What will happen to equilibrium price and quantity of logo shirts?
A. Equilibrium quantity of logo shirts will decrease but effect on price is ambiguous.
B. Equilibrium price of logo shirts will increase but effect on quantity is ambiguous.
C. Equilibrium price of logo shirts will decrease but effect on quantity is ambiguous.
D. Equilibrium quantity of logo shirts will increase but effect on equilibrium price is ambiguous.
Here's the second part to my Econ study guide. Thanks for the help!
12. Holding all other forces constant, if increasing the price of a good leads to an increase in total revenue, then the demand for the good must be
A. unit elastic.
B. inelastic.
C. elastic.
D. None of the above is correct because a price increase always leads to an increase in total revenue.
13. Holding all other forces constant, if increasing the price of a good leads to a decrease in total revenue, then the demand for the good must be
A. unit elastic.
B. inelastic.
C. elastic.
D. None of the above is correct because a price increase always leads to an decrease in total revenue.
14. A good will have a more elastic demand, the
A. greater the availability of close substitutes.
B. more broad the definition of the market.
C. shorter the period of time.
D. more it is regarded as a necessity.
15. A price ceiling is
A. often imposed on markets in which “cutthroat competition” would prevail without a price ceiling.
B. a legal maximum on the price at which a good can be sold.
C. often imposed when sellers of a good are successful in their attempts to convince the government that the market outcome is unfair without a price ceiling.
D. All of the above are correct.
16. If a price ceiling is not binding, then
A. there will be a surplus in the market.
B. there will be a shortage in the market.
C. the market will be less efficient than it would be without the price ceiling.
D. there will be no effect on the market price or quantity sold.
17. Under rent control, tenants can expect
A. lower rent and higher quality housing.
B. lower rent and lower quality housing.
C. higher rent and a shortage of rental housing.
D. higher rent and a surplus of rental housing.
18. The minimum wage is an example of a
A. price ceiling.
B. price floor.
C. wage subsidy.
D. tax.
19. Suppose buyers of computers and printers regard the two goods as complements. Then an increase in the price of computers will cause a(n)
A. decrease in the demand for printers
B. in the supply of printers.
C. increase in demand for printers
D. increase in supply of printers
20. Suppose incomes increase in the economy, and the number of sellers of logo shirts also increase. What will happen to equilibrium price and quantity of logo shirts?
A. Equilibrium quantity of logo shirts will decrease but effect on price is ambiguous.
B. Equilibrium price of logo shirts will increase but effect on quantity is ambiguous.
C. Equilibrium price of logo shirts will decrease but effect on quantity is ambiguous.
D. Equilibrium quantity of logo shirts will increase but effect on equilibrium price is ambiguous.
Explanation / Answer
12. Holding all other forces constant, if increasing the price of a good leads to an increase in total revenue, then the demand for the good must be- B. Inelastic.
13. Holding all other forces constant, if increasing the price of a good leads to an increase in total revenue, then the demand for the good must be- C. elastic.
14. A good will have a more elastic demand, the- A. greater the availability of close substitutes.
15. A price ceiling is- B. a legal maximum on the price at which a good can be sold.
16. If a price ceiling is not binding, then- D. there will be no effect on the market price or quantity sold.
17. Under rent control, tenants can expect- B. lower rent and lower quality housing.
18. The minimum wage is an example of a- B. price floor.
19. Suppose buyers of computers and printers regard the two goods as complements. Then an increase in the price of computers will cause a- A. decrease in the demand for printers.
20. Suppose incomes increase in the economy, and the number of sellers of logo shirts also increase. What will happen to equilibrium price and quantity of logo shirts?- D. Equilibrium quantity of logo shirts will increase but effect on equilibrium price is ambiguous.