GreenTree Corporation sells live Christmas trees. It observes that when it decre
ID: 2507123 • Letter: G
Question
GreenTree Corporation sells live Christmas trees. It observes that when it decreases the price of Christmas trees by 10%, revenue rises by 25%. The demand for Christmas trees must be Question 1 options: inelastic. elastic. unit-elastic. perfectly elastic. perfectly inelastic. GreenTree Corporation sells live Christmas trees. It observes that when it decreases the price of Christmas trees by 10%, revenue rises by 25%. The demand for Christmas trees must be GreenTree Corporation sells live Christmas trees. It observes that when it decreases the price of Christmas trees by 10%, revenue rises by 25%. The demand for Christmas trees must be inelastic. elastic. unit-elastic. perfectly elastic. perfectly inelastic. inelastic. elastic. unit-elastic. perfectly elastic. perfectly inelastic. The supply curve illustrates that firms Question 2 options: increase the supply of a good when its price rises. increase the quantity supplied of a good when its price rises. decrease the quantity supplied of a good when input prices fall. increase the quantity supplied of a good when input prices rise. decrease the quantity supplied to earn higher profits. The supply curve illustrates that firms The supply curve illustrates that firms increase the supply of a good when its price rises. increase the quantity supplied of a good when its price rises. decrease the quantity supplied of a good when input prices fall. increase the quantity supplied of a good when input prices rise. decrease the quantity supplied to earn higher profits. increase the supply of a good when its price rises. increase the quantity supplied of a good when its price rises. decrease the quantity supplied of a good when input prices fall. increase the quantity supplied of a good when input prices rise. decrease the quantity supplied to earn higher profits. If a good or service is labeled normal, then Question 3 options: as income falls, demand for the item increases. as income rises, the quantity demanded of the item decreases. as income rises, the quantity demanded of the item increases. as income rises, demand for the item increases. as income falls, the quantity demanded of the item increases. If a good or service is labeled normal, then If a good or service is labeled normal, then as income falls, demand for the item increases. as income rises, the quantity demanded of the item decreases. as income rises, the quantity demanded of the item increases. as income rises, demand for the item increases. as income falls, the quantity demanded of the item increases. as income falls, demand for the item increases. as income rises, the quantity demanded of the item decreases. as income rises, the quantity demanded of the item increases. as income rises, demand for the item increases. as income falls, the quantity demanded of the item increases. Which of the following would be expected to cause an increase in the supply of fax machines? Question 4 options: An increase in the number of business firms demanding fax machines. An increase in the price of fax machines. A decrease in the cost of manufacturing fax machines. The expectation that the price of fax machines will fall in the future. An increase in the demand for fax machines. Which of the following would be expected to cause an increase in the supply of fax machines? Which of the following would be expected to cause an increase in the supply of fax machines? An increase in the number of business firms demanding fax machines. An increase in the price of fax machines. A decrease in the cost of manufacturing fax machines. The expectation that the price of fax machines will fall in the future. An increase in the demand for fax machines. An increase in the number of business firms demanding fax machines. An increase in the price of fax machines. A decrease in the cost of manufacturing fax machines. The expectation that the price of fax machines will fall in the future. An increase in the demand for fax machines. A consumer purchases quantities of good A and good B in accordance with the rational spending rule. An increase in the price of good A causes the consumer to Question 5 options: buy more A resulting in a movement down the demand curve for good A. buy more A resulting in an rightward shift in the demand curve for good A. do nothing; she is unaffected by the price change. buy less A resulting in a movement up the demand curve for good A. buy less A resulting in a leftward shift in the demand curve for good A. A consumer purchases quantities of good A and good B in accordance with the rational spending rule. An increase in the price of good A causes the consumer to A consumer purchases quantities of good A and good B in accordance with the rational spending rule. An increase in the price of good A causes the consumer to buy more A resulting in a movement down the demand curve for good A. buy more A resulting in an rightward shift in the demand curve for good A. do nothing; she is unaffected by the price change. buy less A resulting in a movement up the demand curve for good A. buy less A resulting in a leftward shift in the demand curve for good A. buy more A resulting in a movement down the demand curve for good A. buy more A resulting in an rightward shift in the demand curve for good A. do nothing; she is unaffected by the price change. buy less A resulting in a movement up the demand curve for good A. buy less A resulting in a leftward shift in the demand curve for good A. A cross-price elasticity of -1.2 indicates the two goods are Question 6 options: inferior. elastic. complements. substitutes. normal. A cross-price elasticity of -1.2 indicates the two goods are A cross-price elasticity of -1.2 indicates the two goods are inferior. elastic. complements. substitutes. normal. inferior. elastic. complements. substitutes. normal. When economists refer to small sellers in the market, they are referring to the notion that Question 7 options: no sellers can influence the price of a good. sellers do not have too many branches of the store. sellers are hiring no more than two hundred workers in their operations. there are only a few suppliers in the market. there is only one seller in the market. When economists refer to small sellers in the market, they are referring to the notion that When economists refer to small sellers in the market, they are referring to the notion that no sellers can influence the price of a good. sellers do not have too many branches of the store. sellers are hiring no more than two hundred workers in their operations. there are only a few suppliers in the market. there is only one seller in the market. no sellers can influence the price of a good. sellers do not have too many branches of the store. sellers are hiring no more than two hundred workers in their operations. there are only a few suppliers in the market. there is only one seller in the market. Mark, Bob and Joe do not adhere to the law of demand. Joe has lower demand for coffee than Mark. Mark, Bob, and Joe have identical demand for coffee. Mark, Bob, and Joe all obey the law of demand. Bob has higher demand for coffee than Joe. Mark, Bob and Joe do not adhere to the law of demand. Joe has lower demand for coffee than Mark. Mark, Bob, and Joe have identical demand for coffee. Mark, Bob, and Joe all obey the law of demand. Bob has higher demand for coffee than Joe. If the price of an item falls, then one would expect to see a(n) Question 9 options: increase in demand. increase in the quantity demanded. decrease in supply. increase in the quantity supplied. decrease in the number of consumers. If the price of an item falls, then one would expect to see a(n) If the price of an item falls, then one would expect to see a(n) increase in demand. increase in the quantity demanded. decrease in supply. increase in the quantity supplied. decrease in the number of consumers. increase in demand. increase in the quantity demanded. decrease in supply. increase in the quantity supplied. decrease in the number of consumers. A perfectly elastic demand curve has a slope of ______, while a perfectly inelastic demand curve has a slope of ______. Question 10 options: infinity; 0 1; infinity 0; 1 0; infinity infinity; 1 A perfectly elastic demand curve has a slope of ______, while a perfectly inelastic demand curve has a slope of ______. A perfectly elastic demand curve has a slope of ______, while a perfectly inelastic demand curve has a slope of ______. infinity; 0 1; infinity 0; 1 0; infinity infinity; 1 infinity; 0 1; infinity 0; 1 0; infinity infinity; 1 If, when the price of X increases, the demand for Y decreases, one can conclude that X and Y are Question 11 options: complements. substitutes. normal. inferior. superior. If, when the price of X increases, the demand for Y decreases, one can conclude that X and Y are If, when the price of X increases, the demand for Y decreases, one can conclude that X and Y are complements. substitutes. normal. inferior. superior. complements. substitutes. normal. inferior. superior. John, Don, and Mary demand 5, 7, and 3 cans of cat food, respectively, when the price is $1.50. If they are the only consumers, the market quantity demanded at a price of $1.50 is Question 12 options: 15 cans. 10 cans. 7 cans. 5 cans. 3 cans. John, Don, and Mary demand 5, 7, and 3 cans of cat food, respectively, when the price is $1.50. If they are the only consumers, the market quantity demanded at a price of $1.50 is John, Don, and Mary demand 5, 7, and 3 cans of cat food, respectively, when the price is $1.50. If they are the only consumers, the market quantity demanded at a price of $1.50 is 15 cans. 10 cans. 7 cans. 5 cans. 3 cans. 15 cans. 10 cans. 7 cans. 5 cans. 3 cans. Assume that Vera has $30 in income and that the price of a loaf of bread is $1.50 and the price of a jar of peanut butter is $3. If Vera's income increases from $30 to $45, the rational spending rule would predict that Vera would buy Question 13 options: more bread and less peanut butter. more bread and more peanut butter. less bread and more peanut butter. less bread and less peanut butter. more bread and the same amount of peanut butter. Assume that Vera has $30 in income and that the price of a loaf of bread is $1.50 and the price of a jar of peanut butter is $3. If Vera's income increases from $30 to $45, the rational spending rule would predict that Vera would buy Assume that Vera has $30 in income and that the price of a loaf of bread is $1.50 and the price of a jar of peanut butter is $3. If Vera's income increases from $30 to $45, the rational spending rule would predict that Vera would buy more bread and less peanut butter. more bread and more peanut butter. less bread and more peanut butter. less bread and less peanut butter. more bread and the same amount of peanut butter. more bread and less peanut butter. more bread and more peanut butter. less bread and more peanut butter. less bread and less peanut butter. more bread and the same amount of peanut butter. Suppose that one observes that, when the price of peanut butter increases, the demand for crackers increases. One must conclude that Question 14 options: peanut butter and crackers are complements. peanut butter and crackers are substitutes. peanut butter and crackers are normal goods. peanut butter and crackers are inferior goods. peanut butter and crackers are superior goods. Suppose that one observes that, when the price of peanut butter increases, the demand for crackers increases. One must conclude that Suppose that one observes that, when the price of peanut butter increases, the demand for crackers increases. One must conclude that peanut butter and crackers are complements. peanut butter and crackers are substitutes. peanut butter and crackers are normal goods. peanut butter and crackers are inferior goods. peanut butter and crackers are superior goods. peanut butter and crackers are complements. peanut butter and crackers are substitutes. peanut butter and crackers are normal goods. peanut butter and crackers are inferior goods. peanut butter and crackers are superior goods. Two recent studies conclude that increased fibre in the diet does not reduce the risk of developing colon cancer. The likely result will be that the Question 15 options: quantity of fibre supplements demanded will fall. demand for fibre supplements will decrease. supply of fibre supplements will increase. price of fibre supplements will rise. market for fibre supplements will be unaffected. Two recent studies conclude that increased fibre in the diet does not reduce the risk of developing colon cancer. The likely result will be that the Two recent studies conclude that increased fibre in the diet does not reduce the risk of developing colon cancer. The likely result will be that the quantity of fibre supplements demanded will fall. demand for fibre supplements will decrease. supply of fibre supplements will increase. price of fibre supplements will rise. market for fibre supplements will be unaffected. quantity of fibre supplements demanded will fall. demand for fibre supplements will decrease. supply of fibre supplements will increase. price of fibre supplements will rise. market for fibre supplements will be unaffected. inelastic. elastic. unit-elastic. perfectly elastic. perfectly inelastic.
Explanation / Answer
1
elastic.
2
increase the quantity supplied of a good when its price rises
3
as income rises, demand for the item increases
4
A decrease in the cost of manufacturing fax machines.
5
buy less A resulting in a movement up the demand curve for good A.
6
complements
7
no sellers can influence the price of a good.
8
Mark, Bob, and Joe all obey the law of demand.
9
increase in the quantity demanded.
10
0; infinity
11
complements.
12
15 cans.
13
more bread and more peanut butter.
14
peanut butter and crackers are substitutes.
15
demand for fibre supplements will decrease
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