You are an artist and create limited edition sculptures for sale at your website. Due to the
Question:
You are an artist and create limited edition sculptures for sale at your website. Due to the limited number of pieces created, your supply curve is perfectly inelastic (vertical). What happens to the equilibrium price and quantity of sculptures sold if the demand curve for your art shifts to the right?
A. | Price declines and quantity does not change | |
B. | Price and quantity decline | |
C. | Price and quantity increase | |
D. | Price increases and quantity does not change |
QUESTION 6
If the demand and supply curves both shift righward, what happens to the equilibrium quantity?
A. | Does not change | |
B. | Decreases | |
C. | Increases |
QUESTION 7
You operate a fast-food franchise in New York, and your parent company requires that you attend a quarterly sales meeting in Los Angeles. This is the only reason you have to fly for business reasons during the year. Is your demand for business air travel perfectly elastic or perfectly inelastic?
A. | Perfectly elastic (horizontal) | |
B. | Perfectly inelastic (vertical) |
QUESTION 8
Suppose the supply curve for chicken sold at the grocery store shifts leftward due to a new illness that harms chickens. What is the expected impact on the equilibrium price of chicken?
A. | Increase | |
B. | Price does not change | |
C. | Decrease |
QUESTION 9
The price elasticity of demand for electricity used by residential homes is -0.4. Is the demand for electricity elastic or inelastic?
A. | Inelastic | |
B. | Elastic |
Microeconomics Theory and Applications with Calculus
ISBN: 978-0133019933
3rd edition
Authors: Jeffrey M. Perloff