AGRB 3190: Agribusiness Management Lecture 5 Quiz

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What is the method used to find the elasticity?

Matrix algebra

Partial derivatives (correct)

Integral calculus

Differential equations

In the context of demand functions, what does a negative cross price elasticity of demand indicate?

The goods are independent

The goods are complementary (correct)

No effect on quantity demanded

The goods are substitutes

What do Stars represent in the Boston Consulting Group Matrix (BCG Matrix)?

High growth, high market share (correct)

Low growth, high market share

Low growth, low market share

High growth, low market share

What does a high income elasticity of demand indicate?

The good is a luxury good Signup and view all the answers

What type of goods have a low income elasticity of demand?

Necessary goods Signup and view all the answers

In the context of elasticity, when is the demand for beer considered unitary elastic?

When the price of beer has no effect on quantity demanded of beer Signup and view all the answers

What is the classification of goods with EI < 0?

Inferior goods Signup and view all the answers

What does a negative value for cross price elasticity of demand indicate?

'Dogs' in BCG Matrix Signup and view all the answers

Bamboozle and Ultimate fireball are products analyzed using which method?

"Partial derivatives" Signup and view all the answers

What is the method used to classify strategic business units or products according to growth and market share?

Boston Consulting Group Matrix (BCG Matrix) Signup and view all the answers

What is used to estimate the percentage change in quantity demanded of a good in response to a percentage change in income?

Income Elasticity Signup and view all the answers

What represents 'low growth, low market share' in the BCG Matrix?

Dogs Signup and view all the answers

What is the classification of own price elasticity when |ED| < 1?

Inelastic demand Signup and view all the answers

What happens to total revenue when inelastic demand occurs?

Total revenue increases Signup and view all the answers

What is the classification of own price elasticity when |ED| = 1?

Unitary elastic demand Signup and view all the answers

What happens to total revenue when unitary elastic demand occurs?

Total revenue remains the same Signup and view all the answers

What is the classification of own price elasticity when |ED| > 1?

Elastic demand Signup and view all the answers

What happens to total revenue when elastic demand occurs?

Total revenue decreases Signup and view all the answers

In the given demand function Q = 60,000 – 5,000P, what does P represent?

Price of tomatoes Signup and view all the answers

"If the selling price is $8, are we on the elastic or inelastic part?" - What is the correct conclusion based on the given context?

"We are on the inelastic part" Signup and view all the answers

What type of product is likely to exhibit inelastic demand?

Necessities like food and medicine Signup and view all the answers

What would be the effect on total revenue if the demand for a product is perfectly inelastic?

Total revenue remains the same Signup and view all the answers

What does it mean when a product has perfectly elastic demand?

The quantity demanded becomes infinite at any positive price Signup and view all the answers

How does a change in income typically affect the demand for normal goods?

Increase in income leads to an increase in demand for normal goods Signup and view all the answers