Ans) the correct option is d) when the demand is inelastic
When the demand is inelastic, decrease in price leads to a greater increase in price
Question 2 Ceteris paribus, when the supply of beef decreases, beef prices will rise by a...
Question 40 An increase in the supply of gasoline, ceteris paribus, will cause equilibrium price: To rise and quantity to fall. To fall and quantity to rise. And quantity to rise. And quantity to fall Question 41 Assume two goods are substitutes. Ceteris paribus, a decrease in the price of one good will cause the equilibrium price of the other good to: Increase and the equilibrium quantity of the other good to increase Increase and the equilibrium quantity of the...
Ceteris paribus, when ticket prices fall: Total revenue product increases. Marginal revenue product decreases. Marginal revenue product increases. Marginal revenue product is unaffected.
Which of the following can change without shifting either demand or supply, ceteris paribus? Group of answer choices a Incomes. b Expectations. c The prices of other goods. d The price of the good itself.
Three completely different real world examples of ceteris paribus violations of supply or demand conditions in markets. Show the invisible hand's reaction. Do prices change? Summarize the changes in prices and quantities
QUESTION 23 Ceteris paribus , which of the following would cause the aggregate demand curve to shift to the right? a reduced stock market wealth b. a reduction in transfer payments c. a rise in consumer confidence d. higher personal taxes QUESTION 24 Ceteris paribus , which of the following would cause the aggregate demand curve to shift to the right? a reduced stock market wealth b. a reduction in transfer payments c. a rise in consumer confidence d. higher...
This question is based on the previous one, which was: Quantity supplied decreases from 70 to 50 units when price decreases from $200 to $120 per unit. Elasticity of supply is: The elasticity value calculated in the previous question indicated that supply is: Select one: O a. Relatively inelastic O b. Relatively inelastic c. Perfectly Inelastic d. Unit Elastic e. Perfectly Elastic O When producers have more time to respond to price changes, supply will likely be more Select one:...
Suppose that the Blinn College Deli is currently selling 500 chef salads per day when the price is $5. Suppose that the own-price elasticity of demand for chef salads is -0.8. The Deli manager would like to increase revenue from chef salads, Which of the following is the best course of action? The best course of action is to raise the price of chef salads, ceteris paribus, since the demand is inelastic The best course of action is to lower the price...
Ceteris paribus, if demand and supply both increase at the same time, equilibrium price and equilibrium quantity_ a. increases; may rise, fall, or stay the same, depending on the size of the two shifts. decreases; may rise, fall, or stay the same, depending on the size of the two shifts. c. may rise, fall, or stay the same, depending on the size of the two shifts; increases may rise, fall, or stay the same, depending on the size of the...
NI There is but one correct answer to each multiple choice question. If Demand decreases by a greater amount than Supply decreases, then Pricean a. Increases, decreases b Deceases, increases c. Decreases, decrease 1. d. Increases, increase 2. A change in the demand for Pork can be caused by a. A change in the price for beef b) A change in the price for pork c. A change in the cost of producing pork 3. An increase in quantity supplied...
The larger the proportion of income spent on a product, other things equal, the: more unit elastic is a consumer's demand. more elastic is a consumer's demand. more inelastic is a consumer's demand. more vertical is a consumer's demand curve. Which of the following pairs of goods would most likely exhibit a cross price elasticity of -1.8? orange juice and grapefruit juice coffee and tea a bagel and cream cheese a van and a sport utility vehicle Ceteris paribus, if...