When the price of cheddar cheese increases 15%, quantity demanded decreases 15%. The price elasticity of demand for cheddar cheese is ________ and total revenue from cheddar cheese sales will ________.
A. unit elastic; not change
B. inelastic; decrease
C. elastic; increase
D. elastic; decrease
Answer: A
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Consumer Sovereignty
- Describe the operation of their "National People Meter Service." How many households are used for this survey?
- Does this survey enhance or reduce consumer sovereignty over the choice of TV programming provided to the public?
- Why is demographic information on viewers of interest to advertisers?
- Does the availability of this demographic information enhance or reduce consumer sovereignty in the markets for the products advertised by sponsors?
Suppose the demand function for cable TV service is given by QCTV = 15 - 0.25 × PCTV + 0.0005 × M + 0.3 × PSTV, where QCTV is the quantity of cable TV demanded (thousands of households), PCTV is the price of cable TV, M is income and PSTV is the price of satellite TV service. If consumers' income is $50,000 and the price of satellite TV service is $90, then which of the following gives the demand curve for cable TV?
A. QCTV = 17 - 0.25 × PCTV B. QCTV = 67 - 0.25 × PCTV C. QCTV = 15 - 0.25 × PCTV + 0.0005 × M + 0.3 × PSTV D. QCTV = 13 - 0.25 × PCTV
Suppose United States net exports are -$50 billion. Then the dollar depreciates. In the short run, the United States may move downward along the J-curve, with net exports _________ and the AD curve shifting to the _______________
A) coming closer to zero; left B) coming closer to zero; right C) moving further from zero; left D) moving further from zero; right
A demand curve for a normal good
A. is constructed based on the assumption that income is rising. B. shows the inverse relationship between price and quantity demanded. C. slopes upward and to the right. D. is constructed based on the assumption that an inverse relationship exists between price and income.