Michaela Juric-Donlan
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Week 5 tutorial quiz based on week 4 lecture

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Michaela Juric-Donlan
Erstellt von Michaela Juric-Donlan vor etwa 7 Jahre
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Elasticity Week 4

Frage 1 von 10

1

The price elasticity of demand is a measure of

Wähle eine der folgenden:

  • the amount of a product purchased when income increases.

  • how much a change in demand affects the equilibrium price.

  • he equilibrium price of a product

  • buyers' responsiveness to changes in the price of a product

  • whether a product is a substitute or a complement.

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Frage 2 von 10

1

The price elasticity of demand calculated as the ________ divided by the ________.

Wähle eine der folgenden:

  • change in quantity demanded; change in price

  • change in price; change in the quantity demanded

  • percentage change in the quantity demanded; percentage change in price

  • percentage change in the quantity demanded; change in price

  • percentage change in price; percentage change in the quantity demanded

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Frage 3 von 10

1

Suppose that a 5% increase in the price of a book resulted in a 2.5% decrease in the quantity demanded of the book. The price elasticity of demand for the book is ________, which can be described as ________.

Wähle eine der folgenden:

  • 2, unit elastic.

  • 0.5, elastic

  • 2.5, elastic

  • 2.5, inelastic

  • 0.5, inelastic

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Frage 4 von 10

1

If a good has many close substitutes, then its demand is most likely

Wähle eine der folgenden:

  • Unit Elastic

  • Elastic

  • Perfectly inelastic

  • inelastic

  • elastic or inelastic depending on whether the price of the good is increasing or decreasing

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Frage 5 von 10

1

Which of the following is true?
i. The easier it is to find substitutes for a good, the more price elastic the demand for the good is.
ii. The demand for a good is more price elastic the smaller the proportion of income spent on it.
iii. If demand is price elastic, lowering the price leads to a decrease in total revenue.

Wähle eine der folgenden:

  • Only i

  • Only ii

  • Only iii

  • i and ii

  • i and iii

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Frage 6 von 10

1

When we use the midpoint method to compute the price elasticity of demand we use

Wähle eine der folgenden:

  • The original price and the average quantity

  • The original quantity and the average price

  • The average price ad the original quantity

  • The average price and the average quantity

  • Either the original or new price, and the average quantity

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Frage 7 von 10

1

What is measured by the price elasticity of supply?

Wähle eine der folgenden:

  • The price elasticity of supply measures how responsive producers are to changes in income

  • The price elasticity of supply measures how responsive producers are to changes in the price of other
    goods.

  • The price elasticity of supply measures how responsive producers are to changes in the price of a product.

  • The price elasticity of supply is a measure of the slope of the supply curve.

  • The price elasticity of supply measures how responsive producers are to changes in the cost of producing a
    product

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Frage 8 von 10

1

If the price elasticity of supply for a good is 10, then supply is

Wähle eine der folgenden:

  • Elastic

  • Perfectly Elastic

  • Unit Elastic

  • Inelastic

  • Perfectly inelastic

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Frage 9 von 10

1

The extent to which the demand for a good changes when the price of a substitute or complement changes, other things remaining the same, is measured as the

Wähle eine der folgenden:

  • price elasticity of supply

  • cross elasticity of demand

  • price elasticity of demand

  • income elasticity of demand

  • cross income elasticity of demand

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Frage 10 von 10

1

The income elasticity of demand is ____________ if the good is ___________ good.

Wähle eine der folgenden:

  • positive; an inferior

  • less than one; an inferior

  • positive; a substitute

  • negative; a normal

  • positive; a normal

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