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Elasticity Calcs - PED/XED/YED/PES Flashcards | StudBud
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Elasticity Calcs - PED/XED/YED/PES
Elasticity Calcs - PED/XED/YED/PES
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Economics elasticity practice: PED, XED, YED, PES
Flashcards
27 cards
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Practice quiz
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Questions
27
Answers
1
For which price level is PED most likely to be elastic?
P2
P3
P1
None
2
If PES is 10, then what period are our corn suppliers likely in?
Long Run
Short Run
Market
3
A PES of 1.5 for butter producers most likely corresponds to the?
Long run
Market Period
4
Price of Cheddar drops from $2.5 to $2.3. Qd of Swiss rises from 108 to 109. XED is?
-.3
1.21
-8.64
-.11
5
A YED value of 1.8 suggests that a good is a:
Normal, Necessity
Inferior, luxury
Inferior, necessity
Normal, luxury
6
Which of the following is likely the short run PES for a textbook producer?
-.05
-3
0
1.1
7
P of Buffalo sauce goes from $3 to $4. XED for wings is -.5. What is the ∆% in Qd of wings?
6.5%
16%
-6.5
-16.5%
8
Your salary is raised 2%. You now demand .5% more cheese. What is your YED?
25%
.25
2.5
-2.5
9
A 10% increase in movie ticket prices leads to a 15% decrease in sales, showing that PED is?
inelastic
cannot tell from the info
elastic
unit elastic
10
Price of E-readers rose from $100 to $110. Next month, Qs rose from 20,000 to 25,000. PES is?
2.5
.25
-1.5
-2.5
11
Price rises from $5 to $5.5, and quantity demanded falls by 1%. What is PED?
-1
1
.1
-.1
12
An XED value of -.25 for 2 goods suggests that they are:
Weak complements
Weak substitutes
Strong substitutes
Strong complements
13
The YED of laptop computers is most likely to be?
-1.5
-.5
.6
0
14
As you move upward along a PES curve for Claude Monet paintings...
The PES coefficient increases
The PES coefficient decreases
The PES coefficient stays the same
The PES coefficient becomes negative
15
P of peanut butter lowers from $2.00 to $1.80. Qd of jelly goes from 100 to 105. XED is?
-2
-.5
1.2
1
16
The PED is 0.6. What should the firm do to maximize its revenue?
Keep price the same?
Raise price
Lower Price
17
Which of the following shows a violation of the law of demand for P and Qd?
-.1/.05
-.05/-.2
.3/-.6
-1/1
18
Elasticity of demand is .50. This means that lowering price 10%, will?
Increase Qd by 5%
Increase Qd by 20%
Decrease Qd by 20%
Decrease Qd by 5%
19
What is most likely to be the YED for insulin?
-.4
Infinity
7
0
20
The PES of hammers is 0.60 and the price increases by 3%, then Qs will rise by?
18%
1.8%
.2%
.6%
21
The price of butter goes up by 7%. What is mostly likely the XED for margarine?
.1
-.8
.65
22
If XED of two commodities is 1.5, then the goods are?
Normal Goods
Luxuries
Complements
Substitutes
23
A price floor in which market will likely lead to the greatest surplus in the long run?
Aircraft
Potatoes
Cola
24
The price of corn rises by 5%, and firms supply 60% more corn. What is PES?
1
5
12
.1
25
Which of the following likely has the highest PES?
Copper Mining firm
Smartphone producer
Cookie bakery
Christmas tree grower
26
A diamond miner's PES is most likely to be which of the following in the long run?
Perfectly elastic
Inelastic
Perfectly Inelastic
Elastic
27
Given Qs = -5000 +3p, which of the following shows increased PES over the whole curve?
-5000+3.3p
-2000+3p
-5000+1.5p
-7000+3p