Write a page paper – Describe in detail the below questions
Q1. Why do we need to understand elasticity? Give an example on how you can use the concept of price elasticity of demand. What is the formula for calculating elasticity?
Q2.What is the price elasticity of demand? Can you explain it in your own words?
Q3. What is the price elasticity of supply? Can you explain it in your own words?
Below are multiple choice questions:
An equilibrium price does all but which of the following?
Select one:
a. Make the supply curve and the demand curve equal.
b. Eliminates excess supply.
c. Equates quantity supplied with quantity demanded.
d. Eliminates excess supply.
Ecologists generally accept all but which one of the following statements?
Select one:
a. There are absolute limits to growth.
b. Our present rates of resource use and population growth will bring about ecological disasters.
c. Nature places limits on growth.
d. Market can provide solutions to the problem of pollution.
Which one of following concerns some of the economists about free rider problem?
Select one:
a. The homeless do not pay taxes.
b. People who do not pay any costs can use public goods.
c. Some of the rich able to employ tax consultants pay no taxes.
d. More people can ride on an airplane when not used to capacity.
Which one of the following is not classfied as a public good?
Select one:
a. Nuclear aircraft carriers.
b. Radio signals
c. B1 bombers.
d. Steel mills.
Which one of the following is not considered a benefit externality?
Select one:
a. Single occupant automobiles.
b. Shade trees
c. Public parks.
d. Public library.
Which one of the following is the best example from the following common property resource?
Select one:
a. A micro chip factory owned by ITT.
b. Grand Canyon National Park operated by the National Park Service.
c. A toyota import owned by Nissan Corporation.
d. Cadillac owned by Edna Brown.
Which one of the following points government intervention in cases of spillover should continue?
Select one:
a. Marginal social cost equals average social cost.
b. Marginal social benefit equals marginal social cost.
c. Marginal social benefit equals average social cost.
d. Total social benefit equals total social cost.
Which one of the following statements about private and public (social) equilibrium rates of consumption is not correct?
Select one:
a. The two rates always have some relationship to each other.
b. The two rates are always the same.
c. The two rates may be same.
d. The two rates may be the same.
Which one of the following statements about gasoline prices is not correct?
Select one:
a. Gasoline prices are such that private and social costs re equal.
b. Gasoline prices cause the users of gasoline to internalize all externalities.
c. Gasoline prices fail to cause the users of gasoline to internalize extenalities.
d. Gasoline prices are such that private and social benefit are equal.
