Podcast
Questions and Answers
What does the cross-price elasticity measure?
What does the cross-price elasticity measure?
- Responsiveness of quantity demanded to a change in the price of a related good (correct)
- Responsiveness of quantity demanded to a change in income
- Responsiveness of quantity supplied to a change in the price of a related good
- Responsiveness of quantity demanded to a change in price of the same good
Which type of goods are complements?
Which type of goods are complements?
- Goods that are unrelated
- Goods with no impact on each other's demand
- Goods that are produced together
- Goods that have a close relationship in consumption (correct)
What does income elasticity measure?
What does income elasticity measure?
- Responsiveness of quantity demanded to a change in the price of a related good
- Responsiveness of quantity supplied to a change in price
- Responsiveness of quantity demanded to a change in income (correct)
- Responsiveness of quantity supplied to a change in income
How do substitutes impact each other's demand?
How do substitutes impact each other's demand?
What is the relationship between price elasticity of demand and total spending?
What is the relationship between price elasticity of demand and total spending?
When the price of a good falls, what effect is greater?
When the price of a good falls, what effect is greater?
What does the substitution effect suggest when the price of a good rises?
What does the substitution effect suggest when the price of a good rises?
For an inferior good, what does the income effect indicate when the price rises?
For an inferior good, what does the income effect indicate when the price rises?
When the price of a complementary good falls, what is likely to happen to the demand for the main good?
When the price of a complementary good falls, what is likely to happen to the demand for the main good?
How does the income elasticity of demand differ for normal goods and inferior goods?
How does the income elasticity of demand differ for normal goods and inferior goods?
In terms of price elasticity, which type of goods have more elastic demand?
In terms of price elasticity, which type of goods have more elastic demand?
What is the total value of the 20 T-shirts bought at a price of $7 each?
What is the total value of the 20 T-shirts bought at a price of $7 each?
If the price of T-shirts rises, what generally happens to consumer surplus?
If the price of T-shirts rises, what generally happens to consumer surplus?
What concept is used to measure how demand for one good responds to a change in the price of another?
What concept is used to measure how demand for one good responds to a change in the price of another?
If two goods are complements, what happens when the price of one good increases?
If two goods are complements, what happens when the price of one good increases?
What does price elasticity of demand measure?
What does price elasticity of demand measure?
Which concept measures how responsive quantity demanded is to a change in consumer income?
Which concept measures how responsive quantity demanded is to a change in consumer income?
