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Questions in this quiz (10)
1If a fall in the price of good A increases the quantity demanded of good B,
- AA) A and B are substitutes
- BB) A and B are complements
- CC) B is a substitute for A, but A is a complement to B.
- DD) A is a substitute for B, but B is a complement to A.
2If goods A and B are complements,
- AA) the cross elasticity of demand between A and B is negative.
- BB) the cross elasticity of demand between A and B is positive.
- CC) their income elasticities of demand are both less than 1.
- DD) their income elasticities of demand are both greater than 1.
3A shift of the supply curve of oil raises the price from $10 a barrel to $30 a barrel and reduces the
quantity demanded from 40 million to 23 million barrels a day. You can conclude that the- AA) supply of oil is elastic.
- BB) supply of oil is inelastic.
- CC) demand for oil is inelastic.
- D D) demand for oil is elastic.
4 A 10 percent increase in income has caused a 5 percent decrease in the quantity demanded. The
income elasticity is- AA) 0.5
- B B) -2.0
- CC) 2.0
- DD) -0.5
5Suppose a rise in the price of peaches from $5.50 to $6.50 per bushel decreases the quantity
demanded from 12,500 to 11,500 bushels. The price elasticity of demand is- AA) 0.5
- B B) 1000.0
- CC) 2.0
- DD) 1.0
6Which elasticity does this graph have?
- AA) Unit elasticity
- BB) Perfectly Inelastic
- CC) Inelastic
- DD) Elastic
7The price increases from 0.50 to 1.50 and the quantity demand has also changes, the elasticity of this graph is -0.25.
What is the percentage change in demand?
- AA) +75%
- BB) -25%
- CC) -50%
- DD) -75%
8What is the formula to find the elasticity of Xed?
- AA) % change in demand of product A / % change in price of product A
- BB) % change in price of product B / % change in demand of product A
- CC) % change in demand of product B / % change in demand of A
- DD) % change in demand of product A / % change in demand of B
9 A fall in the price of X from $12 to $8 causes an increase in the quantity of Y demanded from 900 to
1,100 units. X and Y are- AA) complements
- BB) normal goods
- CC) substitutes
- DD) inferior goods
10 A 10 percent decrease in the price of a Pepsi decreases the demand for a Coca-Cola by 50 percent.
The cross elasticity of demand between a Pepsi and Coca-Cola is- AA) 5
- B B) 10
- C C) 0.20
- D D) 50
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- Quiz on Untitled, created by jay.kim on 17/10/2014.
- Author
- jay.kim
- Language
- English
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