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Elasticity Week 4

Michaela Juric-Donlan 10 questions

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Questions in this quiz (10)

  1. 1The price elasticity of demand is a measure of
    1. Athe amount of a product purchased when income increases.
    2. Bhow much a change in demand affects the equilibrium price.
    3. Che equilibrium price of a product
    4. Dbuyers' responsiveness to changes in the price of a product
    5. Ewhether a product is a substitute or a complement.
  2. 2The price elasticity of demand calculated as the ________ divided by the ________.
    1. Achange in quantity demanded; change in price
    2. Bchange in price; change in the quantity demanded
    3. Cpercentage change in the quantity demanded; percentage change in price
    4. Dpercentage change in the quantity demanded; change in price
    5. Epercentage change in price; percentage change in the quantity demanded
  3. 3Suppose 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 ________.
    1. A2, unit elastic.
    2. B0.5, elastic
    3. C2.5, elastic
    4. D2.5, inelastic
    5. E0.5, inelastic
  4. 4If a good has many close substitutes, then its demand is most likely
    1. AUnit Elastic
    2. BElastic
    3. CPerfectly inelastic
    4. Dinelastic
    5. Eelastic or inelastic depending on whether the price of the good is increasing or decreasing
  5. 5Which 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.
    1. AOnly i
    2. BOnly ii
    3. COnly iii
    4. Di and ii
    5. Ei and iii
  6. 6When we use the midpoint method to compute the price elasticity of demand we use
    1. AThe original price and the average quantity
    2. BThe original quantity and the average price
    3. CThe average price ad the original quantity
    4. DThe average price and the average quantity
    5. EEither the original or new price, and the average quantity
  7. 7What is measured by the price elasticity of supply?
    1. AThe price elasticity of supply measures how responsive producers are to changes in income
    2. BThe price elasticity of supply measures how responsive producers are to changes in the price of other
      goods.
    3. CThe price elasticity of supply measures how responsive producers are to changes in the price of a product.
    4. DThe price elasticity of supply is a measure of the slope of the supply curve.
    5. EThe price elasticity of supply measures how responsive producers are to changes in the cost of producing a
      product
  8. 8If the price elasticity of supply for a good is 10, then supply is
    1. AElastic
    2. BPerfectly Elastic
    3. CUnit Elastic
    4. DInelastic
    5. EPerfectly inelastic
  9. 9The 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
    1. Aprice elasticity of supply
    2. Bcross elasticity of demand
    3. Cprice elasticity of demand
    4. Dincome elasticity of demand
    5. Ecross income elasticity of demand
  10. 10The income elasticity of demand is ____________ if the good is ___________ good.
    1. Apositive; an inferior
    2. Bless than one; an inferior
    3. Cpositive; a substitute
    4. Dnegative; a normal
    5. Epositive; a normal

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Description
Week 5 tutorial quiz based on week 4 lecture
Language
English
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