Elasticity Week 4

Question 1 of 10

1

The price elasticity of demand is a measure of

Select one of the following:

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.

Explanation

Question 2 of 10

1

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

Select one of the following:

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

Explanation

Question 3 of 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 .

Select one of the following:

2, unit elastic.
0.5, elastic
2.5, elastic
2.5, inelastic
0.5, inelastic

Explanation

Question 4 of 10

1

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

Select one of the following:

Unit Elastic
Elastic
Perfectly inelastic
inelastic
elastic or inelastic depending on whether the price of the good is increasing or decreasing

Explanation

Question 5 of 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.

Select one of the following:

Only i
Only ii
Only iii
i and ii
i and iii

Explanation

Question 6 of 10

1

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

Select one of the following:

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

Explanation

Question 7 of 10

1

What is measured by the price elasticity of supply?

Select one of the following:

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

Explanation

Question 8 of 10

1

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

Select one of the following:

Elastic
Perfectly Elastic
Unit Elastic
Inelastic
Perfectly inelastic

Explanation

Question 9 of 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

Select one of the following:

price elasticity of supply
cross elasticity of demand
price elasticity of demand
income elasticity of demand
cross income elasticity of demand

Explanation

Question 10 of 10

1

The income elasticity of demand is __ if the good is _ good.

Select one of the following:

positive; an inferior
less than one; an inferior
positive; a substitute
negative; a normal
positive; a normal

	Created by Michaela Juric-Donlan about 7 years ago

Week 5 tutorial quiz based on week 4 lecture

Elasticity Week 4

Question 1 of 10

The price elasticity of demand is a measure of

Select one of the following:

Explanation

Question 2 of 10

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

Select one of the following:

Explanation

Question 3 of 10

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 ________.

Select one of the following:

Explanation

Question 4 of 10

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

Select one of the following:

Explanation

Question 5 of 10

Select one of the following:

Explanation

Question 6 of 10

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

Select one of the following:

Explanation

Question 7 of 10

What is measured by the price elasticity of supply?

Select one of the following:

Explanation

Question 8 of 10

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

Select one of the following:

Explanation

Question 9 of 10

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

Select one of the following:

Explanation

Question 10 of 10

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

Select one of the following:

Explanation

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

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 .

The income elasticity of demand is __ if the good is _ good.