Homework answers / question archive / 1)With elastic demand, A given percentage increase in price cause quantity to fall by a larger percentage A given price increase in price cause quantity to fall by a smaller percentage A increase in quantity causes prices to reduce by a greater percentage

1)With elastic demand, A given percentage increase in price cause quantity to fall by a larger percentage A given price increase in price cause quantity to fall by a smaller percentage A increase in quantity causes prices to reduce by a greater percentage

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1)With elastic demand,

A given percentage increase in price cause quantity to fall by a larger percentage

A given price increase in price cause quantity to fall by a smaller percentage

A increase in quantity causes prices to reduce by a greater percentage.

2)

Module 1- Assignment-Fall 2020 - Protected View - Saved to this PC References Mailings Review View Help in viruses. Unless you need to edit it's safer to stay in Protected View Search Enable Editing 5. An effective (binding) price ceiling a) Does not exist b) Creates an excess supply. c) Creates an excess demand. d) Has the same effect as an ineffective price floor. e) cand d 6- An ineffective (non-binding) price floor a) Is above the equilibrium price and clears the market. b) Is above the equilibrium price and causes an excess supply. c) Is below the equilibrium price and causes an excess demand. d) None. I 7. Which of the following is correct? a) There is a negative relationship between consumer income and the supply of an inferior good, ceteris paribus. b) There is a positive relationship between the cost of production and market equilibrium price, keeping all the other factors constant. c) Both b and a. d) None. 2 53 52 si 8. Consider figure 1. Suppose that figure 1 shows the market for blueberry muffins Assume that blueberry muffin is a normal good. Which of the following can happen as a result of a decrease in income? d3 a) A shift in demand from dl to d2. b) A Shift in demand from d3 to d2. c) A movement from A to B. Figure 1 d) A movement from C to B. e) A shift in supply from sl to s2 e ? di B F C 9. Consider the same figure. An increase in the number of producers causes a) A shift in supply from si to s2. b) A Shift in supply from 3 to s2. b) A movement from A to B. d) A movement from C to B.