1. If apples have an own-price elasticity of -1.2 we know the demand is: A. Unit
ID: 1194846 • Letter: 1
Question
1. If apples have an own-price elasticity of -1.2 we know the demand is:
A. Unitary
B. Indeterminate
C. Elastic
D. Inelastic
2. Suppose the demand for good X is lnQXd = 21 - 0.8 lnPX - 1.6 lnPY + 6.2 lnM + 0.4 lnAX. Then we know that the own-price elasticity for good X is:
A. Unitary
B. Elastic
C. Inelastic cannot be calculated from the existing information
3. We would expect the own price elasticity of demand for food to be:
A. Less elastic than the demand for cereal
B. More elastic than the demand for cereal
C. Have the same elasticity as soap
D. Perfectly inelastic
4. The demand for women's clothing is, in general,
A. More elastic than the demand for clothing
B. Less elastic than the demand for clothing
C. Equally elastic to the demand for clothing
D. Neither more elastic, less elastic nor equally elastic to the demand for clothing
5. The elasticity of demand for gasoline has been estimated to be 2.0, and the standard error is 1.0. The upper and lower bounds on the 95 percent confidence interval for the elasticity of demand for gasoline are
A. 3 and 2
B. 2 and 1
C. 3 and 1
D. None of the statements associated with this question are correct
Explanation / Answer
1 elastic
2 inelastic cannot be calcualted from the existing information
3 less elastic than the demand for cereal
4 more elastic than demand for cloth
5 D
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