Concept 4 Practice Quiz

1. 1Price elasticity of demand is defined as:

   1. Athe percentage change in quantity demanded divided by the percentage change in price.
   2. Bthe slope of the demand curve.
   3. Cthe slope of the demand curve divided by the price.
   4. Dthe percentage change in price divided by the percentage change in quantity demanded.
2. 2When elasticity is 0.1, demand is
   
   

   1. Ainelastic.
   2. Belastic.
   3. Cunit elastic.
   4. Dundefined.
3. 3A demand or supply curve with ______________ would be horizontal in appearance.
   
   

   1. Ainfinite elasticity
   2. Bunitary elasticity
   3. Czero elasticity
   4. Dinfinite cost elasticity
4. 4A demand curve that is perfectly horizontal is
   
   

   1. Aperfectly elastic.
   2. Bperfectly inelastic.
   3. Crelatively elastic.
   4. Drelatively inelastic.
5. 5Demand is said to be __________ when the quantity demanded changes at the same proportion as the price.
   
   

   1. Aunit elastic
   2. Belastic
   3. Cinelastic
   4. Dindependent
6. 6The tax on a good or service would be represented as
   
   

   1. Aa decrease in supply
   2. Ban increase in demand.
   3. Can increase in supply.
   4. Da decrease in demand.
7. 7If cola and iced tea are good substitutes for consumers, then it is likely that:
   
   

   1. Atheir cross price elasticities are greater than zero.
   2. Btheir price elasticities of demand are less than one.
   3. Ctheir income elasticities are less than zero.
   4. Dtheir price elasticities of supply are less than one.
8. 8A 10 percent increase in the price of soda leads to a 20 percent increase in the quantity of iced tea demanded. It appears that:
   
   

   1. Across-price elasticity of demand for iced tea is -2.
   2. Belasticity of demand for soda 0.5 and is inelastic.
   3. Celasticity of demand for iced tea is 2 and is elastic.
   4. Dcross-price elasticity of demand for soda is -0.5.

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ECON 2203 Test sobre Concept 4 Practice Quiz, creado por Adam Peterson el 18/06/2018.

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