Price and Quantity Effects
Not what you're looking for?
Price ; Quantity Demanded
$200 ; 1000
$150 ; 1400
$100 ; 1800
If price falls from $200 to $150, what is the elasticity of demand over this range?
A. -0.625
B. -1.0
C. -1.17
D. -2.5
E. -3.0
As output increases from 1,000 to 1,400 what is marginal revenue?
A. $25
B. $50
C. -$400
D. -$25
E. -$75
If price falls from $200 to $150,
A. Arrows representing the price and quantity effects both point down.
B. An arrow representing the price effect points down and is longer than an arrow for the quantity effect.
C. An arrow representing the price effect points down and is shorter than an arrow for the quantity effect.
D. Arrows representing the price and quantity effects both point up.
E. Total revenue moves in the same direction as the arrow representing the price effect.
If price falls from $150 to $100, what is the elasticity of demand over this range?
A. -0.625
B. -1.0
C. -1.17
D. -2.5
E. -3.0
As output rises from 1,400 to 1,800, what is marginal revenue?
A. $25
B. $50
C. -$400
D. -$50
E. -$75
If price falls from $200 to $150,
A. Arrows representing the price and quantity effects both point down.
B. An arrow representing the price effect points down and is longer than an arrow for the quantity effect.
C. An arrow representing the quantity effect points up and is shorter than an arrow for the price effect.
D. Arrows representing the price and quantity effects both point up.
E. Total revenue moves in the same direction as the arrow representing the quantity effect.
If price falls from $150 to $100,
A. Arrows representing the price and quantity effects both point down.
B. An arrow representing the price effect points down and is shorter than an arrow for the quantity effect.
C. Total revenue moves in the same direction as the arrow representing the price effect.
D. The arrow representing the price effect points down and the arrow representing the quantity effect points up.
E. Both c and d
Purchase this Solution
Solution Summary
There are 7 problems. Solutions to these problems provide methodology to calculate price elasticity of demand. Quantity effect and price effects are also discussed in the given cases.
Education
- BEng (Hons) , Birla Institute of Technology and Science, India
- MSc (Hons) , Birla Institute of Technology and Science, India
Recent Feedback
- "Thank you"
- "Really great step by step solution"
- "I had tried another service before Brain Mass and they pale in comparison. This was perfect."
- "Thanks Again! This is totally a great service!"
- "Thank you so much for your help!"
Purchase this Solution
Free BrainMass Quizzes
Economic Issues and Concepts
This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.
Pricing Strategies
Discussion about various pricing techniques of profit-seeking firms.
Economics, Basic Concepts, Demand-Supply-Equilibrium
The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.
Elementary Microeconomics
This quiz reviews the basic concept of supply and demand analysis.
Basics of Economics
Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.