15 Noyet annered Points out of 1 P Fag question Suppose there\'sa, increase in d
ID: 2441376 • Letter: 1
Question
15 Noyet annered Points out of 1 P Fag question Suppose there'sa, increase in demand in market and no change in tespply, what w ? happen to the market equlbrium price and quanty? Select one Equitibrium price ill rise equilbrium quantity wl rise b.Equillbrium price will talil; equilbrium quantity wl fa Equilbrium price will rise equilbrium quantity will fal d.Equilibrium price wi taltequiibrium quancity will rise 16 Nt yet anwered Points out of (This question reflers to the MRJ video 'Elasticity of Demand) ls what wty does time horizon afflect the elasticty of a good's demand? Select one 0 a The shoter the time horizon, the less elastic the demand is, because it is harder for producers to adjust production e b. The shorter the time horiaon, the less elastic the demand is because it is harder for consumers to adjust their behavior o The shorter the sme horiron, the more elastic the demand is, because it is easier for consumers to adjust their behavior ?d.The shorter the time herwn tht more eastK the demand because t s easier for produces to atm producton Which statement about the computer chip market is TRUE Select one o aComputer ohp demand is esmated to be unit elustic which explians why the market has not expended as prodution technology has improve b. There are limited uses for computer chips so demand is inelastic 0An inrease in produiviy shifhed the supply ouve to te left. driving up the price o .Productivitycrases in computer chips cased revenues to increase over ome because the demand for computer chigs is elsc thes question refers to the Mu ideo Calculaing the Eastsicity of Demand e a good a smallnorease in the price of a sood leasds to a large decrease in re quantiny demanded Select ore and n ths case revene c demand isExplanation / Answer
Question 15
A.
Demand curve will shift to the right ( increase in demand) and since the supply is the same, the equilibrium price and quantity will increase.
Question 16
B. In the shorter time horizen, the demand is less elastic as consumers will find it hard to look for alternatives or make adjustments.
Question 17
D. Increase in productivity will cause the supply curve to shift to the left lowering equilibrium price and increasing the quantity. Since the demand is elastic, a lower price will increase revenue.
Question 18
A.
Price elasticity of demand (PED)= % change in quantity demanded /% change in price of the good. PED measures the responsiveness of change in quantity demanded to change in price.
An increase in price when the demand is elastic leads to lower revenues.
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