?Government price controls are policies that attempt to maintain the

the price at some disequilibrium value

A tax will be borne completely by suppliers if:

oth the demand and supply curves are perfectly inelastic

?Economics can best be described as

the study of the use of scarce resources

Which of the following is NOT an elasticity?

Price Ceiling elasticity of supply

Why does the PES of oil change from inelastic to elastic?

People developed more oil efficient equiqments

Government price controls are policies that attempt to maintain the ?

the price at some disequilibrium value

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Price Elasticity of Demand and Supply?

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Price Elasticity of Supply

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Questions 18

Answers

1
Which of the following is a possible PES for Oil?
0.458
6.7
1.4
0.1
2
If the PES for a good is .75, the demand for the good can be described as:
elastic
inferior
inelastic
normal
3
Consumers will bear more of the burden of a tax the:
the more inelastic supply is.
none of the above.
more elastic demand is.
more elastic supply is.
4
Relatively Elastic
E = 0
0 < E < 1
E = ∞
1 < E < ∞
5
Which of the following is NOT a primary commodity?
Macdonalds
Water
Oil
Gas
6
What is NOT a determinant for PES?
Market Power
Capital
Price Ceiling
Time
7
How does an inelastic PES change in short run to long run?
unitary elastic
Perfectly inelastic
elastic
Stays the same
8
Would you like a Cherry?
HAHA
Maybe So
No
Yes
9
?Government price controls are policies that attempt to maintain the
quantity sold at less than the quantity bought
none of these responses is correct
market price at equilibrium
the price at some disequilibrium value
10
A tax will be borne completely by suppliers if:
the demand curve is downward sloping
oth the demand and supply curves are perfectly inelastic
the demand curve is perfectly inelastic
. price elasticities of both supply and demand equal one
11
Perfectly Elastic
1 < E < ∞
3c=
E = 0
E = ∞
12
?Economics can best be described as
the study of how a society ought to allocate its resources
the study of the use of scarce resources
a normative science
the study of how to reduce inflation and unemployment
13
Which of the following is NOT an elasticity?
Price Ceiling elasticity of supply
Price Elasticity of Demand:
Cross Elasticity of Demand:
Income Elasticity of Demand:
14
What is PES?
Price Elasticity of Supply
Cherry
Pro Evolution Soccer
Apple
15
Automobiles and gasoline are likely to be considered as?
independent goods
complementary goods
luxury goods
inferior goods
16
If two goods, X and Y, have a negative cross-elasticity of demand, then we know that they
each have a price elasticity greater than one
are substitute
are both inferior goods
are complements
17
Why does the PES of oil change from inelastic to elastic?
Oil companies decides to lower the price
People developed more oil efficient equiqments
It does not change
The Invisible hand
18
Government price controls are policies that attempt to maintain the ?
quantity bought at less than the quantity sold
quantity bought at less than the quantity sold
the price at some disequilibrium value
the price at some disequilibrium value

Price Elasticity of Demand and Supply? Flashcards | StudBud