Text: Need help figuring out which ones I got wrong.
QUESTION 20
4 points
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Suppose that the demand for Cracker Jacks increases from 400 to 425 boxes when the price falls from $1.50 to $1.25. In this situation, you would say that the demand is:
O Inelastic
O Unitary elastic
O Economically elastic
O Elastic
QUESTION 21
4 points
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To increase revenue with an inelastic product, a firm will most likely increase the price.
O True
O False
QUESTION 22
4 points
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If a price ceiling is set above the market equilibrium price:
O Prices will rise to the ceiling price
O Nothing will happen. Nobody is charging that price
O A shortage in the market will occur
O A price floor will have to be set below equilibrium
QUESTION 23
4 points
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If a product is almost purely inelastic and the government places an excise tax on the product:
O Nothing will occur. Elasticity has no effect on taxes
O The seller will absorb most of the tax
O The tax will be divided about equally between the seller and buyer
O The tax will mostly be borne by the customer
QUESTION 24
4 points
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As we move leftward along a straight-line demand curve, the (absolute value of the) price elasticity of demand:
O A grows smaller
O B remains constant at zero
O C remains constant at a value of one
O D remains constant and equal to the (absolute value of the) slope of the demand curve
O E grows larger
QUESTION 25
4 points
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An example of a price control is:
O Black market strategy
O Rent control
O Price efficiency
O Elasticity