Exam 6: Unemployment

A) How responsive producers are to a change in the cost of production.
B) How sensitive buyers are to a change in price.
C) How buyers respond to a change in income.
D) How buyers react to a change in the price of a substitute good.

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A) How much sellers will increase production in response to a change in price.
B) How much sellers will change their price as their quantity supplied changes.
C) How much producers will increase production with changes in consumers' income.
D) How much supply responds to a change in quantity demanded.

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A) The demand for salt is very elastic.
B) The demand curve for salt is vertical.
C) The demand for salt is inelastic.
D) The demand for salt is unitary elastic.

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A) Increase price to increase total revenue.
B) Decrease price to increase total revenue.
C) Reduce price to maximize profits.
D) Increase price because the percentage change in quantity demanded will be greater than the price effect.

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A) The quantity demanded will increase by 5 percent.
B) The quantity demanded will fall by 45 percent.
C) The quantity demanded will rise by 4.5 percent.
D) The percentage change in quantity demanded will fall as income rises.

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A) The percentage change in price was greater than the percentage change in quantity demanded.
B) The percentage change in quantity demanded was greater than the percentage change in price.
C) The demand for the Play Station 3 consoles was inelastic.
D) The percentage change in price was the same magnitude as the percentage change in quantity demanded.

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A) Demand is elastic.
B) Total revenue is maximized.
C) Demand is increasing.
D) Utility is maximized.

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A) Rise by 10 percent.
B) Fall by 10 percent.
C) Not change.
D) Rise by 100 percent.

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A) A normal good.
B) An inferior good.
C) An irregular good.
D) A substandard good.

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A) The law of demand.
B) How much quantity demanded changes after a change in price.
C) The degree to which price changes with a change in quantity demanded.
D) Why the law of demand is untrue.

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A) Smaller the income elasticity for the good.
B) Less elastic the demand for the good.
C) More unitary elastic the demand for the good.
D) More elastic the demand for the good.

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A) Decrease by 78 percent.
B) Increase by 95 percent.
C) Increase by 48 percent.
D) Increase by 78 percent.

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A) Total revenue will rise if the price of cigarettes rises.
B) No matter how high the price goes, the quantity demanded will not fall.
C) Total revenue will fall if the price of cigarettes rises.
D) A price reduction will actually cause the quantity demanded to fall.

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A) The quantity supplied changes little when the price increases.
B) The quantity supplied changes a lot when price increases.
C) The quantity supplied does not change at all when price increases.
D) The quantity supplied changes only when demand changes.

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A) Decrease by 14.3 percent.
B) Decrease by 33.3 percent.
C) Increase by 20.0 percent.
D) Increase by 7.0 percent.

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