Econ 101 Week 2 Quiz |34 Questions| With Correct Answers.

Unit elastic demand {Ans: 1 borderline condition}Elasticity sources {Ans: 1. Historical data 2. Academic studies 3. Government studies 4. General influences}Durable good {Ans: good with a usable life expectancy > 1 year tend to have elastic demand -> option to repair an older model}If there is multiple influences, what do you have to look for? {Ans: CONSITENCY}Total {Ans: total amount the consumer is willing to pay for the total amount consumed}Problems with Price floors {Ans: 1. The price floor creates a persistent surplus 2. Over investment in the industry 3. Firms offer "Disguised" Discounts 4. In some cases (Goods) the price floor creates storage/disposal problems 5. Actual consumption decreases}