1. The war in Iraq comes to an end. Iran and Afghanistan lay pipes to generate more...
Question:
1. The war in Iraq comes to an end. Iran and Afghanistan lay pipes to generate more oil. The United States and Venezuela enter into an era of friendship. Which of the following correctly captures the effect of this change on the market for gasoline?
A. Both equilibrium quantity and price will increase.
B. Both equilibrium quantity and price will decrease.
C. Equilibrium quantity will increase, but equilibrium price will decrease.
D. Equilibrium quantity will decrease, but equilibrium price will increase
2. Edt = 5. This means that if
A. Pt increases by 5 percent, then Qdt will decrease by 1 percent.
B. Qdt increases by 5 percent, Pt will decrease by 1 percent.
C. Pt increases by 1 percent, Qdt will decrease by 5 percent.
D. Pt decreases by $1, Qdt will decrease by 5 units.
3. Let Edt = 2. This implies that the demand for movie tickets is
A. inelastic, because a 1 percent change in Pt changes Qdt by 2 units.
B. inelastic, because a 1 percent change in Pt changes Qdt by 1 percent.
C. elastic, because a 1 percent change in Pt changes Qdt by 1 percent.
D. elastic, because a 1 percent change in Pt changes Qdt by 2 percent.
Operations Management Creating Value Along the Supply Chain
ISBN: 978-0470525906
7th Edition
Authors: Roberta S. Russell, Bernard W. Taylor