Question : 61) If beef and pork substitutes for consumers, the cross : 1241511

 

61) If beef and pork are substitutes for consumers, the cross elasticity of demand between the two products must be

A) negative.

B) positive.

C) indeterminate.

D) elastic.

E) greater than 1.

62) When the price of a pizza is $10, the quantity of soda demanded is 300 drinks. When the price of a pizza is $15, the quantity soda demanded is 100 drinks. The cross elasticity of demand is equal to

A) -0.25.

B) -0.40.

C) -2.50.

D) -25.00.

E) 4.00.

 

63) When the price of going to a movie rises 5 percent, the quantity of DVDs demanded increases 10 percent. The cross elasticity of demand equals

A) 10.0.

B) 0.50.

C) -0.50.

D) -2.0.

E) 2.0.

 

64) If two goods have a cross elasticity of demand of -2, then when the price of one good increases, the demand curve of the other good

A) shifts rightward.

B) shifts leftward.

C) remains unchanged and the supply curve also remains unchanged.

D) might shift rightward, leftward, or remain unchanged.

E) remains unchanged but the supply curve shifts leftward.

65) The income elasticity of demand is the percentage change in the ________ divided by the percentage change in ________.

A) quantity demanded; the price of a substitute or complement

B) quantity supplied; price

C) quantity demanded; price

D) quantity demanded; income

E) quantity demanded when income changes; the quantity supplied

 

66) When income increases from $20,000 to $30,000 the number of home delivered pizzas per year increases from 22 to 40. The income elasticity of demand for home delivered pizza equals

A) 1.45.

B) 0.69.

C) 0.58.

D) 0.40.

E) 2.86.

 

67) When income increases by 6 percent, the demand for potatoes decreases by 2 percent. The income elasticity of demand for potatoes equals

A) -2.00.

B) 3.00.

C) -3.00.

D) 0.33.

E) -0.33.

68) When income increases from $30,000 a year to $40,000 a year, the quantity demanded of weekend vacations by Sara increases from 2 a year to 5 a year. For Sara, the income elasticity of demand of weekend vacations is ________ and weekend vacations are ________ good.

A) 3; a normal

B) 4.5 a normal

C) 1/3; an inferior

D) -4.5; an inferior

E) 1/3; a normal

 

69) If a product is a normal good, then its income elasticity of demand is

A) zero.

B) positive.

C) negative.

D) indeterminate.

E) greater than 1.

 

70) The income elasticity of demand for used cars is less than zero. So, used cars are

A) an inferior good.

B) a normal good.

C) an inelastic good.

D) a perfectly inelastic good.

E) a substitute good.

 

71) An inferior good has a ________ elasticity of demand.

A) positive income

B) negative income

C) negative cross

D) positive cross

E) negative price

 

72) Which of the following is most likely to have an income elasticity of demand that exceeds 1?

A) tobacco

B) alcoholic beverages

C) airline travel

D) food

E) telephone

 

73) Which of the following is most likely to have an income elasticity of demand that is less than 1?

A) movies

B) airline travel

C) foreign travel

D) food

E) restaurant meals