Question 1

Using Excel, Big Poppa's estimates the weekly demand function for its BBQ sandwiches to be Qd = 1,385.63 - (22.30 × P) . In reference to the estimated slope coefficient for price b^, which of the following standard errors gives you the most confidence that the estimated slope coefficient is close to the true slope coefficient?

Accepted Answer

A)  22.0
B)  - 22.0
C)  1.12
D)  2.15E) A) and B)
F) A) and C)

Question 2

If a 10 percent increase in price leads to a 15 percent decrease in the quantity demanded of the good, as a result of the price change, the total revenue for this product will _ _________.

Accepted Answer

A)  decrease
B)  not change
C)  double
D)  increaseE) All of the above
F) A) and D)

Question 3

If a 2 percent increase in the price of a good leads to a 10 percent decrease in the quantity demanded, the price elasticity of demand for the good equals__________ .

Accepted Answer

A)  5.0
B)  2.0
C)  0.25
D)  0.20E) A) and D)
F) All of the above

Question 4

You are the owner of a construction company that specializes in new beach- front condominiums. If the income elasticity for your condominiums is 4.25, which of the following statements is true?

Accepted Answer

A)  An upcoming economic recession will increase the demand for your condominiums.
B)  The demand for your condominiums will not be affected by business cycles.
C)  An upcoming economic expansion will increase the demand for your condominiums.
D)  An upcoming economic expansion will decrease the demand for your condominiums.E) A) and C)
F) None of the above

Exam 3: Measuring and Using Demand

You are the owner of a construction company that specializes in new beach- front condominiums. If the income elasticity for your condominiums is 4.25, which of the following statements is true?

Correct Answer
verified

If a 10 percent increase in price leads to a 15 percent decrease in the quantity demanded of the good, as a result of the price change, the total revenue for this product will _ _________.

Correct Answer
verified

Correct Answer
verified

If a 2 percent increase in the price of a good leads to a 10 percent decrease in the quantity demanded, the price elasticity of demand for the good equals__________ .

Correct Answer
verified

Exam 3: Measuring and Using Demand

You are the owner of a construction company that specializes in new beach- front condominiums. If the income elasticity for your condominiums is 4.25, which of the following statements is true?

Correct AnswerverifiedShow Answer

If a 10 percent increase in price leads to a 15 percent decrease in the quantity demanded of the good, as a result of the price change, the total revenue for this product will _ _________.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

If a 2 percent increase in the price of a good leads to a 10 percent decrease in the quantity demanded, the price elasticity of demand for the good equals__________ .

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified