1.If the supply of widgets is price-elastic, then a 10 percent increase in the price of widgets will cause which of the following?

A. Shift the supply curve to the right by more than 10 percent

B. Increase the quantity supplied by more than 10 percent

C. Increase the quantity supplied by less than 10 percent

D. Shift the supply curve to the right by less than 10 percent

2.The capacity of the stadium for the local baseball team, the Uretown Yokels, is fixed. What does this mean about the price of tickets?

A. They are determined entirely by demand.

B. They are determined entirely by supply.

C. They are determined by a combination of demand and supply.

D. They are mainly determined by supply.

3. If a good is taxed, why would we expect the revenue collected to decrease over time?

A. Demand will become more inelastic.

B. Consumers will become more effective at finding untaxed alternatives

C. Supply will become more inelastic.

D. Sellers will become more effective at finding untaxed alternatives.

If the market price of a good is below the minimum transfer price, the buying profit center should:

Select one:

A. Negotiate a lower transfer price

B. Not engage in the transfer, but rather buy from outside suppliers

C. Accept the transfer price: the money all stays in the company anyways

D. Accept the transfer price and charge a higher selling price

E. None of the above

What is a price floor? Give and describe an example of a price floor in real world applications.

The price of a stock is directly related to the expected future price and earnings. Select one: True False

When a firm is a price-taking firm,

the price of the product it sells is determined by the intersection of the market demand and supply curves for the product.

raising the price of the product above the market-determined price will cause sales to fall nearly to zero.

many other firms produce a product that is identical to the output produced by the rest of the firms in the industry.

all of the above

1. The market price of milk was $5 per gallon and price elasticity was E_P = – 0.6. The price on milk was reduced from $5 to $4.25 per gallon.

• What will be the percentage change in the demand on milk? Increased or decreased?

Please describe the meaning and provide your comments on the given price elasticity.

Is the Right Price a Fair Price? Prices are often set to satisfy demand or to reflect the premium consumers are willing to pay for a product or service. Take a position: “Prices should reflect the value consumers are willing to pay versus Prices should reflect only the cost of making a product or delivering a service.” - Principles of Marketing. Please use the concepts of the subject and pricing menu of it to create my answer.

Price Elasticity of Demand. Discuss the price elasticity of demand. Is it directly related to the availability of suitable substitutes for a product? Please integrate the Bible passages in your discussion.

5a. The price of chicken in January is $3 and 12 pounds are purchased. The price of chicken in December is $6 and 11 pounds are purchased. Calculate the own price elasticity of demand. Explain to the delivery person so that they can understand if the demand for chicken is elastic or inelastic.

5b. The price of beef in May is $4.0 per pound and falls to $3.5 in July. The quantity of chicken consumed in May is 4,000 pounds and falls in July to 3,800 pounds. Calculate the cross price elasticity of demand. Explain to the delivery person so that they can understand if beef and chicken are substitutes or complements.

5c. A coffee cup costs $12 and people buy 5 coffee cups. The price elasticity of demand for coffee cup is -0.8. If the firm increases the price of a coffee cup by 5%, calculate the change in total expenditure. Explain your answer so that the person selling coffee would understand.

1. If the Price Elasticity of Demand (PED) = 1 then…

1. Price should be decreased to maximize revenue.
2. Price should be increased to maximize revenue.
3. Revenue is at its maximum.
4. Profit is at its maximum.

2. If the demand for good X shifts to the right as the price of good Y rises, then goods X and Y are:

1. Inferior goods.
2. Complementary goods.
3. Normal goods.
4. Substitute goods.

3. Which of the following is not a determinant of Price Elasticity of Demand (PED)?
   1. The availability of close substitutes.
   2. Time horizon: the passage of time.
   3. The proportion of income spent on the good.
   4. The preferences of sellers.

4. The concepts of Utility and Marginal Utility are only applicable for:

1. Markets for two goods.
2. All the consumers of one good or service
3. An individual consumer or household.
4. None of the above.

5. An explicit cost is …

1. A variable cost that increases with quantity.
2. A fixed cost that does not increase with quantity.
3. A cost that involves spending money.
4. The same as an opportunity cost.