Which of the following best describes demand? Show The amount good consumers are willing to purchase at a particular price over a period of time. The amount of a good consumers are willing and able to purchase over a particular time period holding all factors except price constant. The willingness and ability of consumers to purchase a particular product. How much consumers will buy at all possible prices in a particular time period holding all factors constant. The amount of a good consumers are willing and able to purchase over a particular time period holding all factors except price constant. Which of the following is NOT addressed in the Law of Demand? The effect of a price increase on quantity demanded. The inverse relationship between the willingness and ability of consumers to purchase a good and the price of that good. The perception of consumers that higher-priced goods are of better quality than lower-priced goods. The expectation that the demand curve for most goods is negatively sloped (downward sloping). The perception of consumers that higher-priced goods are of better quality than lower-priced goods. Which of the following best describes the difference between a change in quantity demanded and a change in demand? A change in quantity demanded occurs when the price of the good has changed; a change in demand occurs when a non-price determinant of demand for the good has changed. A change in quantity demanded occurs when the number of consumers changes; a change in demand occurs when the good's price changes. A change in quantity demanded occurs when the demand curve shifts; a change in demand is reflected as a movement along the demand curve. There is no difference; the terms are synonymous. A change in quantity demanded occurs when the price of the good has changed; a change in demand occurs when a non-price determinant of demand for the good has changed. Which of the following will NOT shift the demand curve for pizza? An increase in the price of soft drinks or beverages in general. The discovery that eating mozzarella cheese will extend one's life expectancy. A dietary shift away from breads and other high carbohydrate foods. All of the above will shift the demand curve for pizza. All of the above will shift the demand curve for pizza. Which of the following is NOT a factor which will shift the demand curve for some product? An increase in the price of a substitute good. An increase in the price of the good itself. An increase in consumer income. An expectation of a future price decline. An increase in the price of the good itself. Which of the following would NOT shift Santa Claus' demand for elf labor? Technological progress in toy-making manufacturing. An increase in the population growth rate. An increase in the elf wage rate. An increase in the level of educational attainment of the average elf. An increase in the elf wage rate. Which of the following would NOT shift the supply of Buffalo Burgers? An increase in the price of Buffalo Burgers. Which of the following best describes the conditions necessary for a market to attain equilibrium? The quantity supplied by producers is equivalent to the quantity demanded by consumers. The price accepted by the producer for the last unit is equivalent to the price the last consumer was willing and able to pay. Consumers are willing and able to pay price P for quantity Q, and producers are willing and able to supply quantity Q at price P. All of the above accurately describe the conditions necessary for a market to attain equilibrium. All of the above accurately describe the conditions necessary for a market to attain equilibrium. If a price ceiling is the maximum legal price that may be charged for some good or service, and a price floor is the minimum legal price that may be charged for some good or service, which of the following circumstances would result in a shortage? The government establishes a price support (floor) for milk at a price of $2.00 per gallon, while the market equilibrium price would be (is) $1.75. The government establishes a price support (floor) for wheat at a price of $12.00 per bushel, while the equilibrium price would be (is) $14.00. New York City local government establishes a rent control (price ceiling) on apartments in a certain section of the city at $1,200 per month, while the equilibrium price for the apartments would be (is) $1,150 per month. None of the above situations would result in a shortage. None of the above situations would result in a shortage. Which of the following cannot be determined using comparative statics analysis? Whether or not a new equilibrium price and quantity is equitable (fair) in comparison to the old equilibrium price and quantity. The effects of market changes as of two different points in time. The effects of the imposition of a price ceiling on equilibrium price and quantity in a market previously in equilibrium. None of the above can be determined using comparative statics analysis. Whether or not a new equilibrium price and quantity is equitable (fair) in comparison to the old equilibrium price and quantity. Which of the following would result in an increase in equilibrium price and quantity for Dodge Neons? An increase in the price of BMWs. The expectation of a future price decline of Dodge Neons. Technological progress in robotics for building automobiles. None of the above would increase the equilibrium price and quantity of Dodge Neons. None of the above would increase the equilibrium price and quantity of Dodge Neons. Which of the following would result in an increase in equilibrium quantity and a decrease in equilibrium price for filet mignon? A decrease in the proportion of vegetarians in the market. An increase in the supply of grain used to feed cows. An increase in the number of pork tenderloin producers. None of the above would result in an increase in equilibrium quantity and a decrease in equilibrium price of filet mignon. An increase in the supply of grain used to feed cows. Which of the following statements is true? Following the conventional format of economic equations, the function for this demand curve would be: QD = 1750 - 125 P Following the conventional format of economic equations, the function for this demand curve would be: QD = 2116.16 - 125 P Following the conventional format of economic equations, the function for this demand curve would be: P = 16.92928 - 0.008 Q Following the conventional format of economic equations, the function for this demand curve would be: P = 14 - 0.008 Q Following the conventional format of economic equations, the function for this demand curve would be: P = 16.92928 - 0.008 Q Which of the following best describes the concept of price elasticity of demand? The amount by which quantity changes for a given change in price. The proportion of change in sales for a given proportional change in price. The proportion of change in price for a given proportional change in sales. The proportion of change in sales for a given proportional change in the Consumer Price Level. The proportion of change in sales for a given proportional change in price. Which of the following does NOT describe why average values are used as scale figures in the arc elasticity formula? For a given dollar amount of a price variance, a price markup will result in a greater proportional change than a price markdown. The value of the elasticity will be different, though mathematically correct, if one base point is chosen over another. Both of the above are accurate depictions of the rationale. None of the above are reasons for using average values as scale figures. Both of the above are accurate depictions of the rationale. Which of the following does NOT describe why the arc elasticity formula may be judged as superior to the point elasticity formula? The arc elasticity is suitable for determining the effects of average changes over a range of values for the variables. The arc elasticity isolates the effects of instantaneous changes in the variables. The decision maker may be either unfamiliar with calculus or deem the point elasticity as inferior. It is easily calculated and may yield an adequate measure for the current set of circumstances. The arc elasticity isolates the effects of instantaneous changes in the variables. Which of the following describes why the point elasticity formula may be judged as superior to the arc elasticity formula? Since demand curves are as of a moment in or over a very short period of time, use of quantities and prices from two different times may distort the elasticity as the demand curve may have shifted. Use of two points along the demand curve does not accurately reflect the elasticity at either point, but at the mid-point between the two. If the demand curve is nonlinear, the arc elasticity may not represent the appropriate elasticity for decision making. All of the above may describe why the point elasticity may be judged as superior to the arc elasticity. All of the above may describe why the point elasticity may be judged as superior to the arc elasticity. If the demand function is estimated to be Q = 22 - 2P, and we wish to evaluate the impact of a change in price from 5 to 6 using the arc elasticity formula, which of the following statements is correct? The price elasticity associated with this demand function is constant at -2. A $1.00 increase in price would be associated with a 1-unit decrease in quantity demanded, on average, ceteris paribus. Over this range of values, the demand function exhibits unitary price elasticity of demand. None of the above statements are an accurate reflection of the effect on quantity demanded from the given price change. Over this range of values, the demand function exhibits unitary price elasticity of demand. Which of the following statements accurately describes the effects of price-elastic demand? "Our firm can increase our revenue by cutting our selling price." "We can definitely increase our profits by cutting our price." Since our sales fall by 10,000 units for every $1.00 increase in price, we must lower our price to increase profits." None of the above accurately describes the effects of price elastic demand. Our firm can increase our revenue by cutting our selling price." Which of the following would NOT describe an aspect of long-run adjustment to rising gasoline prices?. Consumers replace SUVs with smaller, more fuel efficient cars. U.S. automobile manufacturers began to design and produce higher-mileage automobiles. Consumers make no changes in their current driving habits. Urban areas invest in new public transportation systems Consumers make no changes in their current driving habits. Which of the following describes marginal revenue? The rate of change in total revenue for an arbitrarily small change in input prices. The addition to total revenue associated with a one-unit rise in quantity. The amount of revenue generated from the last unit produced. The change in total revenue for a given change in price. The addition to total revenue associated with a one-unit rise in quantity. For the estimated demand function Q = 22 - 2P, the arc elasticity over the prices of $3 and $5 is -0.5714. the point elasticity at a price of $4 is -0.5714. marginal revenue will be positive at prices above $5.50. All of the above are true. ... Which of the following best describes the difference between the short-run and the long-run? The short-run is generally regarded as a period of 3 years or less while the long-run is generally regarded with a period of time over 3 years. The short-run is a period of time when all inputs are fixed while in the long-run at least one input is variable. In the short-run, at least one input is fixed and at least one input is variable; in the long-run, all inputs are variable. In the short-run, productive technology is assumed to be restricted from advancement; in the long-run, productive technology is allowed to progress. In the short-run, at least one input is fixed and at least one input is variable; in the long-run, all inputs are variable. Which of the following best describes the marginal product of an input? The additional cost from utilizing an additional unit of the input. The additional amount of the input required to produce an additional unit of output. The amount of output generated per unit of the input employed. The amount of output generated from the last unit of the input employed. The amount of output generated from the last unit of the input employed. Under which of the following conditions would output / total product be maximized? Marginal product of the input is zero. Marginal product of the input is zero. Which of the following best describes the 'Law of Diminishing Returns'? Beyond some point, output / total product per unit of the input employed must fall. Beyond some point, additional units of the input employed will result in smaller increases in output / total product. Beyond some point, additional units of the input employed will result in decreases to output / total product. None of the above accurately describes the 'Law of Diminishing Returns'. Beyond some point, additional units of the input employed will result in smaller increases in output / total product. Under which of the following circumstances would a firm NOT be acting rationally in regards to the stages of production? The firm is encountering diminishing returns to the input. The firm's output / total product per unit of the input is falling. The last unit of the input employed yielded greater output than the previous unit. The firm would be acting rationally under all of the above circumstances. The last unit of the input employed yielded greater output than the previous unit. If a firm's output increases by 10 percent After all inputs were increased by 100 units, the firm is experiencing increasing returns to scale. After an 8 percent increase in a single input, holding the others constant, would indicate the firm is experiencing decreasing returns to scale. After the firm increased input usage of all inputs by 12 percent to obtain this increase in output, the firm would be encountering decreasing returns to scale. None of the above conclusions can be drawn. After the firm increased input usage of all inputs by 12 percent to obtain this increase in output, the firm would be encountering decreasing returns to scale.
Which of the following types of cost is NOT relevant to managerial decision-making? Replacement cost. Historical cost. Which of the following describes the relationship between production and cost? Cost is production expressed in monetary terms. The limiting assumptions of short-run production analysis apply to short-run cost analysis. Total variable cost is the 'mirror image' of total product. All of the above accurately describe the relationship between production and cost. All of the above accurately describe the relationship between production and cost. The short-run cost functions do NOT work under which of the following assumptions: For 2 inputs, labor and capital, labor is variable, capital
is fixed. The firm uses the inputs to produce multiple products. the effect of the law of diminishing returns to a variable input can be seen in the short-run cost curves as: Total cost increases at a decreasing rate when the firm is encountering diminishing returns. Marginal cost is increasing. The firms total cost per unit of output (ATC) is increasing. All of the above are true. Marginal cost is increasing. Which of the following would NOT be a factor that would result in a downward sloping learning curve? The proverbial "practice makes perfect." The firm is encountering constant or diminishing returns to scale. A decrease in cost per unit of output as workers become more proficient in the production process. All of the above are reasons for downward sloping learning curves. The firm is encountering constant or diminishing returns to scale. Which of the following would NOT result in increased efficiency of production through economies of scope? The firm's inputs are unique to the final good it produces, which is equally unique. The firm produces two types of goods which have similar inputs and production processes. The firm develops a complementary service for the good it produces. All of the above situations would result in increased efficiency as specified under economies of scope. The firm's inputs are unique to the final good it produces, which is equally unique. Question 1. The product the firm produces is homogeneous or standardized. The firm may raise the price of the product it sells incurring small declines in sales. The firm can sell all it wants at the market clearing price. Consumers are assumed to have complete (perfect) information regarding the producers in the market. The firm may raise the price of the product it sells incurring small declines in sales. A firm operating in a perfectly competitive market will NOT Face significant barriers to entry or exit of the industry. Have significant control over the price it receives for the product it produces. Produce a differentiated (non-standardized, heterogeneous) product. The perfectly competitive firm will not face or cannot do any of the above. The perfectly competitive firm will not face or cannot do any of the above. Which of the following is NOT part of the basic business decision to enter or exit a perfectly competitive industry? How much should we charge for our product? How much output should we produce? If we incur a loss, will this be a short-run phenomenon, or a reason to exit the industry? None of the above are part of the business case decision to enter or exit a perfectly competitive industry. How much should we charge for our product? For firms in perfectly competitive industries Profit maximization (profit Max) occurs at Q where MR = ATC. The firms TR function will rise and attain a maximum. Profit maximization (profit Max) occurs at Q where P = MC. None of the above are true. Profit maximization (profitMax) occurs at Q where P = MC. What is a change in demand and a change in quantity demanded?A change in quantity demanded refers to a movement along a fixed demand curve -- that's caused by a change in price. A change in demand refers to a shift in the demand curve -- that's caused by one of the shifters: income, preferences, changes in the price of related goods and so on.
Which one of the following statements is correct about a change in demand?Answer and Explanation: The correct answer is C. If the price is currently above equilibrium, the market adjustment will result in a decrease in price and quantity supplied. When the price is above equilibrium, the demand for goods and services will decline, resulting in a decrease in prices and quantity supplied.
Which statement is correct both a change in quantity demanded?Both a change in quantity demanded and a change in demand are shifts of the demand curve, only in different directions.
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Which of the following correctly describes a change in quantity demanded and a change in demand?
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