7.Refer to Table 5-1.Which of the following is consistent with the elasticities given in Table5-1?a.A is laundry detergent and B is Tide.b.A is Diet Pepsi and B is soda.c.A is yacht and B is a food.d.A is toilet paper and B is candles.
8.Last month, sellers of good Y took in $100 in total revenue on sales of 50 units of good Y.This month sellers of goodY raised their price and took in $120 in total revenue on salesof 40 units of good Y. At the same time, the price ofgood X stayed the same, but sales ofgood X increased from 20 units to 40 units. We can conclude that goods X andY are
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62.Refer to Table 5-1.Which of the following is consistent with the elasticities given in Table 5-2?a.A is grapes and B is fruit.b.A is T-shirts and B is socks.c.A is train tickets before cars were invented, and B is train tickets after cars were invented.d.A is diamond necklaces and B is beds.ANS:C
63.Studies indicate that the price elasticity of demand for cigarettes is about 0.4.A government policy aimed atreducing smoking changed the price of a pack of cigarettes from $2 to $6.According to the midpoint method,the government policy should have reduced smoking by
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64.If a 15% increase in price for a good results in a 20% decrease in quantity demanded, the price elasticity ofdemand is
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65.If a 20% increase in price for a good results in a 15% decrease in quantity demanded, the price elasticity ofdemand is
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66.If a 10% decrease in price for a good results in a 20% increase in quantity demanded, the price elasticity ofdemand isa.0.50.b.1.c.1.5.d.2.ANS:D
67.If a 6% decrease in price for a good results in a 2% increase in quantity demanded, the price elasticity ofdemand is
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