2016: Paula Jara
Quiz by , created more than 1 year ago

10 Question Quiz

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2016: Paula Jara
Created by 2016: Paula Jara over 8 years ago
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Microeconomics

Question 1 of 10

1

When is demand inelastic?

Select one of the following:

  • The percentage change of quantity demanded is greater than the percentage change in price of a good.

  • The percentage change of quantity demanded is smaller than the percentage change in price of a good.

  • A relative small change in price results in a relatively big change in quantity demanded.

  • The PED is greater than 1.

Explanation

Question 2 of 10

1

The factors that change PES are?

Select one of the following:

  • Time only.

  • Time and stocks only.

  • Stocks and capacities only.

  • Time, stocks, capacities, and capital labor.

Explanation

Question 3 of 10

1

What should a company do to raise total revenue if the product is inelastic?

Select one of the following:

  • Lower prices.

  • Declare it an inferior good.

  • Diversify its production.

  • Raise prices.

Explanation

Question 4 of 10

1

The price of elasticity of demand of an elastic product can range between?

Select one of the following:

  • -1 to 1

  • 0 to 1

  • -infinity to 1

  • 1 to infinity

Explanation

Question 5 of 10

1

When is the Xed a substitute good rather than a complementary one?

Select one of the following:

  • When the Xed is negative

  • When it is a normal good

  • When the Xed is positive

  • Can't be determined

Explanation

Question 6 of 10

1

Supply is elastic if?

Select one of the following:

  • The good in the question is a normal good

  • The slope of the supply curve is positive

  • If the curve crosses through y-axis

  • If the curve crosses through x-axis

Explanation

Question 7 of 10

1

If the price elasticity of demand for a product equals 1, as its price rises the

Select one of the following:

  • Total revenue increases

  • Total revenue stays the same

  • Total revenue decreases

  • supply of good decreases

Explanation

Question 8 of 10

1

What is the difference between a luxury good and an inferior good.

Select one of the following:

  • Luxury goods Yed is always positive, and elastic

  • Luxury goods Yed is always positive, and inelastic

  • Luxury goods Yed may be both inelastic and elastic

  • Luxury goods are always negative

Explanation

Question 9 of 10

1

In substitute goods...?

Select one of the following:

  • Weak substitutes are elastic

  • There is no such a thing as weak substitutes

  • Strong substitutes are elastic

  • There is no such a thing as strong substitutes

Explanation

Question 10 of 10

1

What is the shape of the unit elastic for PED?

Select one of the following:

  • Horizontal

  • Vertical

  • Positively diagonal

  • Rectangular hyperbola

Explanation

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