fA Princess Sumaya 4_sal> i se University dja 3yui0Mll for Technology Yeglgistl King Talal Faculty of Business Technology Practice -11/4/2023 Student Name: Ql. As the price of camcorders fell during the 1990s, the amount of money spent on this good increased, that is, consumers’ total expenditures on camcorders increased. This fact suggests that the demand for camcorders A) is clastic B) must be upward sloping. ©) must have shifted leftward D)is inelastic. Q. Producers’ total revenue will decrease if AA) income increases and the good is anormal good. B) the price rises and demand is elastic. ) the price rises and demand is inelastic. D) income falls and the good is an inferior good. Q3. Producers’ total revenue will increase if A) income increases and the good is an inferior good. _B) the price rises and demand is. elastic, ©) the price rises and demand is inelastic, D) income falls and the good is a normal good. Q4. Demand is unit elastic when A) the slope of the demand curve is -1. B)a shift of the supply curve leads to no change in price. C)a shift ofthe supply curve leads to an equal shift of the demand curve, D)a change in the price of the product leads to no change in the total revenue, QS. Ifa 4 percent rise in the price of peanut butter lowers the total revenue received by the producers of peanut butter by 4 percent, the demand for peanut butter A)is inelastic. B) is elastic, C)is unit elastic. D) has an elasticity of 2.0. (Q6. If the government imposes a tax on a commodity in order to obtain tax revenues, it will obtain the most revenue if the demand for the product is: a. Perfectly elastic b, Relatively elastic ©. Unit elastic d. Relatively inelastic, 5. You are a supplier of apples. Your research department estimates that the price elasticity of demand for apples is 2.5, By what percentage will quantity demanded rise if you lower price from $4 to $2? a) 16.67 percent. _b) 167 percent. c) 67 percent. d) 50 percent. e) none of the above.lA& Princess Sumaya 4_sol> S Miss University djau 3)s0lll for Technology LaglgiStl) King Talal Faculty of Business Technology Practice -9/4/2023 Student No. ..Student Name: Ql. The demand for Honda Accords is A) probably inelastic but more elastic than the demand for automobiles. B) probably inelastic and less elastic than the demand for automobiles. ©) probably elastic but less elastic than the demand for automobiles. D) probably elastic and more elastic than the demand for automobiles. Q2. Ifa price decrease results in your expenditure on a good decreasing, your demand must be A) linear. —_B) elastic, C) unit. D) inelastic. Q3. Assuming that your demand for gasoline is inelastic, when the price of gasoline falls, which of the following is most likely to occur? ‘A) Your demand curve for gasoline will shift leftward. B) Your demand curve for gasoline will shift rightward, C) Your total expenditure on gasoline will increase. D) Your total expenditure on gasoline will decrease. Q4. The route from Dallas to Mexico City is served by more than one airline. The demand for tickets from American Airlines for that route is probably A) inelastic but more elastic than the demand for all tickets for that route. B) inelastic and less elastic than the demand for all tickets for that route. C) clastic but less elastic than the demand for all tickets for that route. D) elastic and more elastic than the demand for al tickets for that route. QS. Of the following, demand is likely to be the inelastic for A)Ford automobiles. B)Toyota automobiles. C) Compact disc players. D) toothpicks. Q6. A product is likely to have a price elasticity of demand'that exceeds 1 when price falls. B) the percentage of income spent on it decreases. is a necessity. D) it has close substitutes. QJ. If the demand curve for a good is a downward sloping straight line, the demand for tie good will be more price elastic the higher is the A) income elasticity of demand for that good B) price of substitutes. ) income of consumers. D) price of the goodFAR Princess Sumaya d_aol> BE Se University dtaw by yolll ¥ yy for Technology LaaglgiSill King Talal Faculty of Business Technology Practice -30/3/2023 Student Name:1. In Jordan, consumers can either use natural gas or diesel central heating (6S y« ix) to ‘warm their houses. Consumers can switch between them fairly easy, and consumers donot ” have a strict preference. Suppose the price of diesel increases. Show the impact of the higher price of diesel on the markets of diesel and natural gas, Make sure you present the appropriate and related graphs, price equilibrium, and quantity equilibrium before and after the price changes. Present a brief reasoning one on why the changes happen. L x» ‘The figure above represents the market for candy. Peopie become more concemed that eating candy causes them to gain weight, which they do not like. As a result, the ‘A) demand curve will not shift, and the supply curve shifts from St to S2, B) demand curve shifts from D1 to D2and the supply curve shifts from $1 to $2. C) demand curve shifts from D2 to D1 and the supply curve shifts from $2 to $1. D) demand curve shifts from D2 to D1 and the supply curve will not shift.le Princess Sumaya deal seve University 4 tau 8; eolll WZ for Technology Leglgizl) King Talal Faculty of Business Technology Practice -2/4/2023 .. Student Name: QI. A 10 percent increase in the quantity of spinach demanded results from a 20 percent decline in its price, The price elasticity of demand for spinach is A) OS. B) 20, ©)2.0. D) 10.0, Q2. A fall in the price of X from $12 to $8 causes an increase in the quantity demanded from 900 to 1,100 units, Calculate the PED? Q3. The following is a demand schedule for apple: Price Quantity demanded $5 10 4 12 3 16 2 2 1 28 a, Calculate the midpoints elasticity as price decreases from $4 to $3.© @ ® the price of cocoa falls; Supply Demand Quantity What happens to equilibrium price P* and equilibrium quantity Q* if people become more health conscious and consume less calories; both the price of cacao falls and people become more health conscious and con- sume less calories? Price Demand Quantity Q Now incomes fall. What happens to the market for good X if © Xis a normal good; ® Xis an inferior good? Use graphs to answer these questions.le incess Sumaya @_sol> & Neve University &_daw 6) soll WZ for Technology LeolgiSail King Talal Faculty of Business Technology Practice -20/4/2023 Student No. Student Name: ..sssseesse QI. When the price of a CD is $13 per CD, 39,000,000 CDs per year are supplied. When the price is $15 per CD, 41,000,000 CDs per year are supplied, What is the elasticity of supply for CDs? A) 2.86 B) 0.35 0.14 D) 0.05 2.In general, a steeper supply curve is more likely to be price elastic. none of these answers. unit price elastic. price inelastic. consumer income will increase demand for --—------ but decrease demand a. Substitute good, inferior good b.Normal good, inferior good eInferior good; normal good d.Normal good, complementary good 4, You are a supplier of apples. Your research department estimates that the price elasticity of demand for apples is 2.5. By what percentage will quantity demanded rise if you lower price from $4 to $2? a) 16.67 percent. b) 167 percent. ©) 67-percent. 4) 50 percent. enone of the above. 5; What type of good would you expected to have a negative income elasticity of demand? 1, Normal good 2, Inferior good. 3.Luxury good 6. If the cross elasticity of demand between goods A and B is negative, A) the demands for A and B are both price elastic. B) A and B are complements. C) the demands for A and B are both price inelastic. D) A and B are substitutes7. Write down the types of elasticity at each graph? ee ae 8 ‘ngang. PRICE © quantrry - x Guanilyo, ‘cone 1) 2) 3) y 1 i 4 © quantmy x Airset 4) 5) 6) 10, Ifa shift in the demand curve that raises the price of oranges from $7 to $9 a bushel increases the quantity of oranges supplied from 4,000 bushels to 6,000 bushels, the A) supply of oranges is elastic. B) supply of oranges is inelastic. C) demand for oranges is elastic. D) demand for oranges is inelastic.GAR Pires Sunayad sale a Me University dugaw Sycpoll LW for Technology aglgiSzU) King Talal Faculty of Business Technology Practice -6/4/2023 Student No... Student Name: Q1. Suppose the price elasticity of demand for oil is 0.1. In order to lower the price of oil by 20 percent, the quantity of oil supplied must be increased by ‘A) 200 percent. B) 20 percent. C)2 percent. D) 0.2 percent. Q2.If the price elasticity is between 0 and 1, demand is A) elastic. B) inelastic. C) unit elastic. D) perfectly elastic. Q3, Demand is inelastic if ‘A) a large change in quantity demanded results in a small change in price. B) the quantity demanded is very responsive to changes in price. ) the price elasticity of demand is less than 1. D) the price elasticity of demand is greater than 1. Q4. A good with a vertical demand curve has a demand with ‘A) unit elasticity. B) infinite elasticity. C) zero elasticity. D) varying elasticity. QS. When the price elasticity of demand for a good equals, A) 0, the demand curve is vertical. B) 0, the demand curve is horizontal, C) 1, the demand curve is vertical D) 1, the demand curve is horizontal. (Q6. Along a straight-line demand curve, as the price falls the ‘A) demand becomes more elastic. 'B) demand becomes less elastic. C) elasticity of demand is constant. D) demand is always unitary elastic. Q7. The price elasticity of demand ___in value when moving downward along a ___line demand curve. ‘A) falls; straight —-B) rises; curved) falls, curved D) rises; straighti Princess Sumaya &_aal> Ef Nese University Aga 3) yall LW for Technology LSglgiSil) King Talal Faculty of Business Technology Practice -20/4/2023 Student No....ssescssessssssesseeseStudemt NAM: ..+..e0 QI. When the price of'a CD is $13 per CD, 39,000,000 CDs per year are supplied. When the price is $15 per CD, 41,000,000 CDs per year are supplied. What is the elasticity of supply for CDs? A) 2.86 B) 0.35 oo.4 D) 095 2.In general, a steeper supply curve is more likely to be a. price elastic. b. none of these answers. c. unit pricé elastic. 4._ price inelastic. 3. An increase in consumer income will inerease demand for —- for a-— a. Substitute good, inferior good b.Normal good, inferior good cnferior good, normal good <.Normal good, complementary good — but decrease demand 4, You are a supplier of apples. Your research department estimates that the price clasticity of demand for apples is 2.5. By what percentage will quantity demanded rise if youlower price-from $4 to $2? a) 16.67 percent. b) 167 percent. ©) 67 percent. 4) 50 percent. €) none of the above. 5. What type of good would you expected to have a negative income elasticity of demand? 1. Normal good 2. Inferior good 3.Luxury good: 6. If the cross elasticity of demand between goods A and B is negative, A) the demands for A and B are both price elastic. B) A and B are complements. C) the demands for A and B are both price inelastic. D) A and B are substitutes7. Write down the types of elasticity at each graph? ¥ gles le E f a} i ©. quantiry x ‘Quantity Q ome » 2 3 y y © Quantity x ‘Quantity @ e100 wae a aba* y 5) 6) 8, The types of price elasticity of supply are: A B. D. E. 9. What is perfectly i 10, Ifa shift in the demand curve that raises the price of oranges from $7 to $9 a bushel increases the quantity of oranges supplied from 4,000 bushels to 6,000 bushels, the A) supply of oranges is elastic. B) supply of oranges is inelastic. C) demand for oranges is elastic. D) demand for oranges is inelastic.GAR) Princess sumayadaaty cS University A gau 3, soll ®¥ y for Technology Laglgiszll King Talal Faculty of Business Technology Practice -18/4/2023 Student Name: QL. A fall in the price of X from $12 to $8 causes an increase in the quantity of Y demanded from 900 to 1,100 units. X and Y are A) inferior goods. 'B) normal goods. ©) substitutes. _D). complements Q2. A 10 percent decrease in the price of a Pepsi decreases the demand for a Coca-Cola by 50 percent. The cross elasticity of demand between a Pepsi and Coca-Col A)50. B)10. ©) 0.20. D)s.Q3. The following is a supply schedule for orange: (4) Price juantity supplied $5 10 4 8 3 6 2 4 1 2 a, Calculate the point elasticity as price decreases from $3 to $2. b, From the result (a) draw the supply curve on the graph below. Q4. The elasticity of supply measures the sensitivity of AA) supply to changes in costs, B) quantity supplied to a change in price. C) price to changes in supply. D) quantity supplied to quantity demanded. QS. A horizontal supply curve indicates an elasticity of supply that equals NO. B) infinity. Ol D)-1. Q6. When the price of a CD is $13 per CD, 39,000,000 CDs per year are supplied. When the price is $15 per CD, 41,000,000 CDs per year are supplied. What is the elasticity of supply for CDs? A)2.86 B)0.35 ©) 0.14 D) 0.05 : i I : Q7. The above figure illustrates the supply curve for a good. The good has ‘A) many substitutes. B) no substitutes. C) only one substitute.) only a few substitutes,