A successful advertising campaign would likely
a. increase price elasticity of demand by stressing the uniqueness of the product
b. reduce price elasticity of demand by stressing the uniqueness of the product
c. reduce price elasticity of demand by informing consumers of the availability of substitutes
d. not alter the demand curve
e. generally make the demand curve shift inward
QUESTION 2The demand curve for a good that has many perfect substitutes in consumption is likely to be
a. upward sloping
b. steep
c. highly inelastic
d. horizontal
e. vertical
QUESTION 3The demand for Olin skis is likely to be
a. less elastic than the demand for skis in general
b. more elastic than the demand for skis in general
c. unit elastic relative to the demand for skis in general
d. as elastic as the demand for skis in general
e. greater than the demand for skis in general
QUESTION 4Demand is more elastic
a. in the short run than in the long run
b. for necessities than for luxuries
c. for food than for hamburgers
d. for goods with many substitutes than for goods with only a few
e. for broadly defined goods than for narrowly defined ones
QUESTION 5The value of price elasticity of demand for a good with no close substitutes
a. will tend to be greater than -1 (e.g., -0.03)
b. will tend to be less than -1 (e.g., -4)
c. will tend to be equal to -1
d. will tend to be equal to 0
e. cannot be determined without more information
QUESTION 6For which of the following is demand most likely to be price inelastic?
a. lamb
b. meat
c. veal
d. pork
e. beef
QUESTION 7The more broadly a good is defined,
a. the more substitutes it has so the more elastic is its demand
b. the fewer substitutes it has so the more elastic is its demand
c. the more substitutes it has so the less elastic is its demand
d. the fewer substitutes it has so the less elastic is its demand
e. the more complements it has so the more elastic is its demand
Quick Reply
