Following a rightward shift a demand curve, demand will be less elastic at any given price. True...
Question:
Following a rightward shift a demand curve, demand will be less elastic at any given price.
True
False
Explain.
Demand Curve:
The demand curve for a product changes due to factors other than the price of the product. A rightward shift indicates that more of the product is demanded at all prices.
Answer and Explanation:
Become a Study.com member to unlock this answer! Create your account
View this answerSee full answer below.
Ask a question
Our experts can answer your tough homework and study questions.
Ask a question Ask a questionSearch Answers
Learn more about this topic:
Get access to this video and our entire Q&A library
The Elasticity of Demand: Definition, Formula & Examples
from
Chapter 3 / Lesson 7
79K
Understand what elasticity of demand is and discover different types of elasticity of demand. Learn how it is measured and review the elasticity of demand formula.
Related to this Question
- True or false? A rightward shift in the supply curve, assuming no change in the demand curve, will increase the price and decrease the quantity demanded.
- True or false? An increase in demand shifts the demand curve to the right, increasing the equilibrium price.
- The movement along a given demand curve is the same as a shift in the demand curve. True or False. Explain.
- When the demand curve shifts, the change in equilibrium price will be smaller the closer the price elasticity of supply is to 0. True False
- A change in price can cause a shift of the demand curve. True or false?
- Answer true or false and explain: The movement along a given demand curve is the same as a shift in the demand curve.
- Answer true or false: An increase in demand is reflected as a rightward (outward) shift of the demand curve and is caused by an increase in price.
- True or false? An increase in price will cause the demand curve to shift down and to the left.
- A shift in aggregate demand will change the equilibrium price level. a. True. b. False.
- An increase in the price level shifts the aggregate demand curve to the left. True False
- True or false? An increase in the price level shifts the aggregate demand curve to the left.
- Cost-push inflation can be described as a rightward shift of the aggregate supply curve. True or false?
- True or false? Along a single demand curve, demand elasticity decreases as you move down the curve (to lower prices).
- The long-run aggregate demand curve can never shift. True False
- TRUE or FALSE: An increase in supply will cause a decrease in price, which will cause the demand curve to shift.
- Moving along the inelastic portion of a demand curve the change in quantity demanded will always be proportionately less then the change in price. True or false?
- A price ceiling will cause a shift in the demand curve for the good. True False
- With a completely elastic supply curve, we cannot be sure whether consumer surplus generate in market rises or falls when demand in that market increases. True False
- With a completely elastic supply curve, we cannot be sure whether consumer surplus generate in market rises or falls when demand in that market increases. True or false?
- True or false? An increase in the price of a good will shift the demand curve for the good.
- An increase in demand will cause the equilibrium price and quantity to rise. A) True B) False
- True or False: In economics, leftward shift of a supply curve represents a decrease in supply.
- An increase in price will cause a supply curve to shift to the left. True or false?
- If the market demand curve for a good is a downward-sloping line, its price elasticity is constant. a. True. b. False.
- If the demand curve is a linear function of price, then the price elasticity of demand is the same at all prices. a. True. b. False.
- The ratio of price to marginal cost for a monopolist increases as the demand curve becomes more elastic. True or False? Explain
- The value of the price elasticity of demand is equal to the slope of the demand curve. True or false?
- True or false? A change in the price of inputs could shift either the demand curve or the supply curve.
- Excess demand in a market economy would force prices down. True False
- a) The Market Demand Curve is the same an Individual Demand Curve? True or False. Discuss b) Does the market demand curve always slope downward to the right? If your answer is yes, discuss. If your an
- True or false? A shift in the demand curve occurs when consumers want to buy more at a given price.
- True or false? The elasticity of demand is constant along a linear demand curve.
- True or false? The demand for labor will be more elastic if the demand for the product is relatively inelastic.
- If demand is infinitely elastic, a unit tax of $2 will cause the market price to rise by $2. Explain your answer (i) true (ii) false
- The long-run aggregate supply curve can never shift. True False Explain.
- True or false? A monopolistic firm's demand curve is less elastic than a purely competitive firm's demand curve.
- If the elasticity of demand is 0.5, then a 20% change in price will lead to a 10% change in quantity demanded. A) True B) False
- An increase in demand causes an increase in the equilibrium price. The increase in equilibrium price will then cause an increase in supply. True or false.
- The flatter the demand curve passing through a given point, the less elastic the demand curve at that point. a. True b. False
- 1. In a free market equilibrium, demand equals supply at the equilibrium price. A. True B. False 2. If a tax is imposed on sellers of a product the demand curve will: A. shift upward. B. shift do
- State true or false and justify your answer: Not only do changes in demand induce relatively wide fluctuations in price when supply is inelastic, but changes in supply induce relatively wide fluctuations in price when demand is inelastic.
- Answer true or false: When there is a decrease in both supply and demand, the effect on the equilibrium price is indeterminate(or ambiguous).
- True or false? A decrease in the price of a complementary good will shift the demand curve for a good.
- Answer true or false: In the Keynesian view, a leftward shift in aggregate demand does not lead to falling prices since the short-run aggregate supply curve is vertical.
- True or false? The value of the price elasticity of demand is not equal to the slope of the demand curve.
- In the Keynesian view, a leftward shift in Aggregate Demand does not lead to falling prices since the short run Aggregate Supply curve is vertical. True False
- Answer true or false: If the demand and the supply of a product both decrease, the equilibrium price will rise.
- If supply of a good increases while its demand decreases, then equilibrium price will fall. a) True b) False
- True or false? A monopolistic firm's demand curve is always inelastic.
- True or false? A change in expectations could shift either the demand curve or the supply curve.
- The price floor shifts the demand curve to the left. True False
- A change in quantity demanded is a movement along the same demand curve. (a) True (b) False.
- State true or false and justify your answer: An increase in demand with no change in supply will increase equilibrium price and reduce equilibrium quantity.
- Consumer surplus is the area above the demand curve and below the equilibrium price. True or False.
- Answer true or false: The law of supply indicates that an increase in price will cause an increase in supply which is reflected graphically as a rightward shift of the supply curve.
- Is the following statement true or false? Explain your answer. The elasticity of demand is the same as the slope of the demand curve.
- True or false? An increase in supply, with no change in demand, will decrease the equilibrium price and the equilibrium quantity.
- True or false? A change in price causes a shift in the demand curve, while a change in any other factor leads to a movement along the demand curve.
- When demand is perfectly inelastic with respect to price, the demand curve is horizontal. True or false?
- If a 10% increase in price decreases the quantity demanded by 12%, the price elasticity of demand is 1.2. A) True B) False
- True or False: A "change in quantity demanded" is a shift of the entire demand curve to the right or the left.
- Why this statement is false? please explain. The own price elasticity of demand is constant if the slope of the demand curve is constant.Why is this statement false? explain. "The own price elasticit
- State true or false and justify your answer: If market demand increases and market supply decreases, then the change in equilibrium price is unpredictable without first knowing the exact magnitudes of the demand and supply changes.
- True or false? If the price elasticity of demand is equal to 0, then demand is unit elastic.
- Answer true or false: If a 10 percent change in price leads to a 20 percent change in quantity demanded, then the price elasticity of demand would be equal to two.
- True or False: In an increasing cost industry, the long-run equilibrium price is unchanged after an increase or decrease in market demand.
- State whether true or false. An increase in real consumer income will shift both the supply and demand curves.
- True or false? If demand is inelastic, a drop in price will raise quantity demanded by a higher percentage.
- True or false? An increase in demand without any changes in supply will cause the price to rise.
- True or false? An increase in supply decreases the equilibrium price. The decrease in price increases demand.
- True or False: The flatter the demand curve passing through a given point, the less elastic the demand curve at that point.
- True or false? If the demand curve for a good is a steep, straight line, then the demand for the good is inelastic at every point along that demand curve.
- True or False: If demand shifts to the left, given supply, then the equilibrium price and the equilibrium quantity will fall.
- A decrease in the currency exchange rate would shift the aggregate demand curve rightward, resulting in a higher equilibrium income and price level in the long run. a. True b. False
- True or false? If demand increases and supply increases, the equilibrium price will rise and the quantity will rise.
- Suppose demand rises in the pear market, thus pushing up the equilibrium price. The price increase will be higher when supply is relatively inelastic rather than relatively elastic. Is this statement true or false? Explain.
- 1. Consumer surplus can be measured as the area between the demand curve and the supply curve. a. True b. False 2. An increase in price increases consumer surplus. a. True b. False 3. Implicit costs
- True or false? If the demand and supply for a product both increase, the equilibrium price of the product must also increase.
- True or false? If the percentage change in price is 5% and the percentage change in quantity demanded is 20%, then demand is elastic.
- True or False: The demand curve facing a monopolistically competitive firm is elastic. The goal of the firm's owner is to make it nearly inelastic. Explain.
- True or false? A demand curve that is flatter (has a less steep slope) is relatively more elastic than a demand curve that has a steeper slope.
- The demand curve facing a monopolistically competitive firm is elastic. The goal of the firm's owner is to make it nearly inelastic. Is this True or False. Explain
- A monopolist always sets price equal to the unitary elastic point on its demand curve.? a. True b. False, Use a graph.
- True or false? In free market equilibrium, demand equals supply at the equilibrium price.
- True or false? If demand decreases and supply increases, the equilibrium price will fall and the quantity will rise.
- Perfectly inelastic demand occurs when the demand curve is vertical. True False
- True or false? Perfectly inelastic demand occurs when the demand curve is horizontal.
- Suppose demand falls in the apple market, thus causing the equilibrium price to drop. The price decrease will be larger when supply is relatively inelastic rather than relatively elastic. Is this statement true or false? Explain.
- With respect to the kinked demand curve, price is greater than marginal costs. True False
- True or false? An increase in supply without any changes in demand will cause the price to rise.
- State true or false and justify your answer: A contractionary fiscal policy shifts the aggregate demand curve leftward.
- True or false? If a good has a price elasticity of demand of 0.65, an increase in price would increase revenue.
- Answer true or false: If market demand increases and market supply decreases, the change in equilibrium price is unpredictable without first knowing the exact magnitudes of the demand and supply changes.
- The demand curve in a perfectly competitive market is perfectly elastic. TRUE or FALSE.
- True or False: If labor and capital are complements in production, then the long-run labor demand curve is less elastic than the short-run labor demand curve. Explain your answer.
- True or False: A decrease in the currency exchange rate would shift the aggregate demand curve rightward, resulting in a higher equilibrium income and price level in the long-run.
- True or false? Contractionary fiscal policy seeks to shift the aggregate demand curve to the right.
- The aggregate demand curve is the sum of individual demand curves in the economy. (a) true (b) false
- Price-discriminating, profit-maximizing monopolists charge higher prices to buyers who have more elastic demand curves. a. True b. False
- Suppose after a 3% decrease in the price of a good, the quantity demanded for the good increases by 2%. This means the price elasticity of demand is 0.67. Is this statement true or false? Explain.
Explore our homework questions and answers library
Browse
by subject