1. Suppose price elasticity of demand is greater than 1. Which of the following statements is true? A. Percentage change
Posted: Wed Jul 06, 2022 5:55 am
1. Suppose price elasticity of demand is greater than 1.Which of the following statements is true?
A. Percentage change in sales is greater than percentage changein prices.
B. Percentage change in sales is less than percentage change inprices.
C. Percentage change in sales is equivalent to percentage changein prices.
D. If price increases, there will be decrease in sales and thusrevenue continue to rise.
E. Marginal Cost is greater than 1.
2. A monopolistic firm produces optimal quantity byequating MC to MR. If the unit cost of good increases, we shouldobserve:
A. Optimal quantity to decrease and Optimal price toincrease.
B. Optimal quantity to increase and Optimal price toincrease.
C. Optimal quantity to decrease and Optimal price todecrease.
D. Optimal quantity to increase and Optimal price todecrease.
E. Optimal quantity stays the same and Optimal price todecrease.
3. The null-scully measure of each league is indicatedas follows: NHL is 0.23, NBA is -1.2, NFL is 1.02, and MLB is 2.8.Which league exhibits the highest competitive balance?
A. NFL and MLB
B. NBA
C. NHL
D. MLB
E. NFL
4. Some institutions were put into practice to promotecompetitive balance. One of which is to allow the worst team topick the best college player, then the second worst team to pickthe second best player and so on. This institution is knownas:
A. Luxury tax
B. Payroll cap
C. Reserve Clause
D. Reverse Order draft
E. None of the above
5. Governments decided to impose price floor on good Xin a perfectly competitive market. This results in:
A. Market prices to be above equilibrium price and results inexcess demand.
B. Market prices to be below equilibrium price and results inexcess demand.
C. Market prices to be above equilibrium price and results inexcess supply.
D. Market prices to be below equilibrium price and results inexcess supply.
E. Market prices to be equal to equilibrium price and results inexcess supply.
A. Percentage change in sales is greater than percentage changein prices.
B. Percentage change in sales is less than percentage change inprices.
C. Percentage change in sales is equivalent to percentage changein prices.
D. If price increases, there will be decrease in sales and thusrevenue continue to rise.
E. Marginal Cost is greater than 1.
2. A monopolistic firm produces optimal quantity byequating MC to MR. If the unit cost of good increases, we shouldobserve:
A. Optimal quantity to decrease and Optimal price toincrease.
B. Optimal quantity to increase and Optimal price toincrease.
C. Optimal quantity to decrease and Optimal price todecrease.
D. Optimal quantity to increase and Optimal price todecrease.
E. Optimal quantity stays the same and Optimal price todecrease.
3. The null-scully measure of each league is indicatedas follows: NHL is 0.23, NBA is -1.2, NFL is 1.02, and MLB is 2.8.Which league exhibits the highest competitive balance?
A. NFL and MLB
B. NBA
C. NHL
D. MLB
E. NFL
4. Some institutions were put into practice to promotecompetitive balance. One of which is to allow the worst team topick the best college player, then the second worst team to pickthe second best player and so on. This institution is knownas:
A. Luxury tax
B. Payroll cap
C. Reserve Clause
D. Reverse Order draft
E. None of the above
5. Governments decided to impose price floor on good Xin a perfectly competitive market. This results in:
A. Market prices to be above equilibrium price and results inexcess demand.
B. Market prices to be below equilibrium price and results inexcess demand.
C. Market prices to be above equilibrium price and results inexcess supply.
D. Market prices to be below equilibrium price and results inexcess supply.
E. Market prices to be equal to equilibrium price and results inexcess supply.