Quiz
Chapter 2
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Questions in this quiz (10)
1If the demand curve shirts to the left and the equilibrium price is unchagned, the price elasticity of demand will now be
- Aless because consumers are less sensitive to price change
- Bless because consumers are more sensitive to price change
- Cgreater because consumers are less sensitive to price change
- Dgreater because consumers are more greaeter to price change
2Demand for a good is said to be effective when it is associated with
- Aknowledge of the characteristics of the good
- Bthe existence of an adequate supply of the good
- Cthe satisfaction of a want
- Dwilligness and ability to pay for the good
3which ealsticity always has negative sign
- APes
- BYed
- CPed
- DXed
4When is the ped for a good is likely to be high
- Awhen expenditure on the good is small part of total expenditure
- Bwhen the good has few uses
- Cwhen good is habit forming
- Dwhen there are many subsitutes for good
5Which one is NOT independent variable in elasticity
- Aprice of good
- Bincome
- Cprice of another good
- Ddemand
6What is the defining characteristic of normal good
- AAn increase in income leads to an increase in quantity demanded
- BThe price elasticity of demand is greater than unity
- CDecrease in income leades to increase to quantity demanded
- DSubstitutes fall in price quantity demande increases
7Give that potatoes are an inferior good, what will cause an increase in the price of potato
- Aa decrease in advertising expenditure
- Ba failure of potato harvest
- Can increasein subsidies to potato growers
- Dan increse in the incomeof consumers
8For which pair of commodities are the Xed most likely to be negative
- Acinema tickets and videos
- Bfirst and second class rail tickets
- Cpetrol and cars
- Dsalt and sugar
9The Xed between two goods will be higher
- Agreater difference in price between two goods
- Bgreater Yed of two goods
- Cgreater Ped of two goods
- Dmore they are reareded as similar by consumers
10The supply of a particular product will be more inelastic
- Athe longer it takes to produce the good
- Bthe longer the good can be stored
- Cthe greater the number of firms in the industry
- Dthe greater the amount of spare capacity in the industry
- Ethe greater the ease of swithching factors between products
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- Quiz on Chapter 2, created by susan9862211 on 17/10/2014.
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- susan9862211
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- English
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