6.
In Lower Slobbovia, the government imposes a price floor in the market for zbisznys. The price floor is above the equilibrium price of zbisnys, and the law is enforced. As a result, the quantity that is actually bought and sold will decrease. The decrease in the quantity bought and sold will be larger if
A) the elasticity of supply is larger.
the elasticity of supply is smaller.
C) the elasticity of demand is larger.
D) the elasticity of demand is smaller.
E) zbisznys are an inferior good.
7.
The demand for good Y is inelastic. Due to an earthquake, there is a decrease in the supply of good Y (i.e., the supply curve shifts to the left). What will happen to the total revenues of sellers of good Y?
A) Total revenue will increase.
Total revenue will decrease.
C) Total revenue will stay the same.
D) None of the above!!!!!
E) Not enough information has been given to answer the question.
8.
The price of tarfsnods increases by 20%. As a result of the price increase, the quantity of tarfsnods demanded falls by 20%. Which of the following is true?
A) Demand is inelastic; the price increase will lead to an increase in total revenue.
Demand is unit elastic; total revenue will be unchanged.
C) Demand is elastic; the price increase will lead to a decrease in total revenue.
D) Demand is unit elastic; the price increase will lead to an increase in total revenue.
E) Demand is unit elastic; the price increase will lead to a decrease in total revenue.
9.
The own-price elasticity of demand for good Z is 1.2. The price of good Z goes down. As a result of the price decrease, what will happen to total revenue of the sellers of good Z?
A) Total revenue will increase.
Total revenue will stay the same.
C) Total revenue will decrease.
D) All of the above!!!!!
E) Not enough information has been given to answer the question.
10.
Assume that the own-price elasticity of demand for gasoline is 0.5. The price of gasoline goes down. As a result of the price decrease, what will happen to total revenue of the sellers of gasoline?
A) Total revenue will increase.
Total revenue will stay the same.
C) Total revenue will decrease.
D) All of the above!!!!!
E) Not enough information has been given to answer the question.
11.
The price of good A increases. As a result of the price increase, there is a decrease in the total revenue received by sellers of good A. What does this imply about the own-price elasticity of demand for good A?
A) Demand is elastic.
Demand is unit elastic.
C) Demand is inelastic, but not perfectly inelastic.
D) Demand is perfectly inelastic.
E) Not enough information has been given to answer the question.
12.
Which of the following is true for BOTH the own-price elasticity of demand and the elasticity of supply?
A) If the demand curve or supply curve is vertical, we say that demand or supply is perfectly inelastic.
If the demand curve or supply curve is horizontal, we say that demand or supply is perfectly elastic.
C) Both demand and supply are likely to have a larger elasticity, if there is more time for people to adjust to a change in price.
D) All of the above.
E) (a) and (c) only.
13.
The income elasticity of demand for good B is 0.5. Based on this information, which of the following is true?
A) Good B is a normal good.
Good B is an inferior good.
C) The demand for good B is inelastic.
D) (a) and (c).
E) Not enough information has been given to answer the question.
Can anyone help me with these? I have some answers, but I'm not confident in them.