Q6. If the admission price for a rock concert is raised from $25 to $30 causing sales to drop from 60,000 to 40,000, the price elasticity of demand for tickets to the concert is: A) 2.20. B) -1.67. C) -2.20.
Q7. Suppose the price of computers increases from $1,000 to $1,200. Assuming the original quantity demanded for computers was 50 million units, and the new quantity demanded is 45 million computers, what is the price elasticity of demand, and is the demand for computers elastic or inelastic? A) -0.58, inelastic. B) 0.58, inelastic. C) -1.73, elastic.
Q8. Antonio Conti consumes 2 pounds of beef per week when beef is $4.50 per pound and 3 pounds of chicken when chicken sells for $3.50 per pound. If the price of chicken increases to $4.00 per pound, Conti’s consumption of beef increases to 2.5 pounds per week. Which of the following most accurately describes Conti’s cross elasticity of demand for beef versus chicken? The cross elasticity of demand for: A) beef relative to chicken is +1.67 and beef and chicken are complimentary goods. B) chicken relative to beef is +1.75 and beef and chicken are substitutes. C) beef relative to chicken is +1.67 and beef and chicken are substitutes.
Q9. Assume that for the average consumer, the quantity demanded for jeans increases from 5 to 7 pairs per year in response to a price decrease from $29 to $24 per pair. The respective price elasticity and relative elasticity of demand for jeans is best described by which of the following? A) −1.77; relatively inelastic. B) −1.77; relatively elastic. C) −2.32; relatively elastic.
| 
发表于 2008-12-31 09:20
| 
