Suppose You Are Shown Two Intersecting Demand Curves That Are
Suppose you are shown two intersecting demand curves that are drawn on the same scale.At the point of intersection,one of the demand curves is steeper than the other.Which of the following could explain the difference in slopes?
A)The steeper one has a higher income elasticity of demand.
B)The steeper one is probably the demand curve for a luxury good.
C)The steeper one applies for the short run whereas the flatter one applies for the long run.
D)The flatter one is for a good with no close substitutes.
E)It is not possible to compare the slopes of different demand curves.
Suppose egg producers succeed in permanently raising the price of their product by 15%,and as a result the quantity demanded falls by 15% in the short run.In the long run we can expect the quantity demanded to fall by
C)between 0 and 15%.
D)more than 15%.
Suppose that the quantity demanded of a good rises from 40 units to 60 units per month when the price falls from $1.05 to 95 cents per unit.The price elasticity of demand for this product is
Which of the following statements would you expect to be true about price elasticities of demand for T -shirts and clothing?
A)Compared with clothing,T-shirts have a lower price elasticity of demand because they are specifically defined.
B)Because T-shirts are clothing,but not all clothing is T-shirts,T-shirts would have a lower price elasticity of demand than clothing.
C)Clothing has a higher price elasticity of demand because it is a necessity.
D)T-shirts would have the same price elasticity of demand as clothing.
E)Clothing has a lower price elasticity of demand because it is more broadly defined.