Question 1

The amount of time elapsed since a price change influences the price elasticity of demand because as more time passes,

Accepted Answer

A) consumers find more substitutes and the price elasticity of demand for the original good decreases. 
B) consumers find more substitutes and the price elasticity of demand for the original good increases. 
C) the price of the good will return to its original value. 
D) the income of consumers rises and the price elasticity of demand for the good increases. 
E) the income of consumers rises and the price elasticity of demand for the good decreases. 
A) consumers find more substitutes and the price elasticity of demand for the original good decreases. 
B) consumers find more substitutes and the price elasticity of demand for the original good increases. 
C) the price of the good will return to its original value. 
D) the income of consumers rises and the price elasticity of demand for the good increases. 
E) the income of consumers rises and the price elasticity of demand for the good decreases.

Question 2

A technological breakthrough lowers the cost of photocopiers.If the demand for photocopiers is price inelastic,photocopier sales

Accepted Answer

A) fall and total revenue increases. 
B) fall and total revenue decreases. 
C) rise and total revenue increases. 
D) rise and total revenue decreases. 
E) rise,but changes in total revenue will depend on elasticity of supply. 
A) fall and total revenue increases. 
B) fall and total revenue decreases. 
C) rise and total revenue increases. 
D) rise and total revenue decreases. 
E) rise,but changes in total revenue will depend on elasticity of supply.

Question 3

The demand for corn increases.As a result,the price of corn ________,and the less elastic the supply of corn,the ________ will be the effect on the price.

Accepted Answer

A) falls;smaller 
B) falls;greater 
C) rises;smaller 
D) rises;greater 
E) does not change;smaller 
A) falls;smaller 
B) falls;greater 
C) rises;smaller 
D) rises;greater 
E) does not change;smaller

Question 4

A decrease in tuition fees decreases the university's total revenue if the price elasticity of demand for university education is

Accepted Answer

A) negative. 
B) greater than zero but less than 1. 
C) equal to 1. 
D) greater than 1. 
E) less than the elasticity of supply. 
A) negative. 
B) greater than zero but less than 1. 
C) equal to 1. 
D) greater than 1. 
E) less than the elasticity of supply.

Question 5

Demand is unit elastic when

Accepted Answer

A) an increase in supply does not change the price of the good. 
B) a decrease in supply raises the price of the good. 
C) a change in price does not change total revenue. 
D) the slope of the demand curve is -1. 
E) the slope of the demand curve is +1. 
A) an increase in supply does not change the price of the good. 
B) a decrease in supply raises the price of the good. 
C) a change in price does not change total revenue. 
D) the slope of the demand curve is -1. 
E) the slope of the demand curve is +1.

Question 6

Total revenue from the sale of a good decreases if

Accepted Answer

A) income increases and the good is a normal good. 
B) its price rises and demand is elastic. 
C) its price rises and demand is inelastic. 
D) income falls and the good is an inferior good. 
E) its price falls and demand is elastic. 
A) income increases and the good is a normal good. 
B) its price rises and demand is elastic. 
C) its price rises and demand is inelastic. 
D) income falls and the good is an inferior good. 
E) its price falls and demand is elastic.

Question 7

For which one of the following is demand likely to be most price inelastic?

Accepted Answer

A) diamonds 
B) insulin for a diabetic 
C) potatoes 
D) gasoline 
E) books 
A) diamonds 
B) insulin for a diabetic 
C) potatoes 
D) gasoline 
E) books

Question 8

Use the table below to answer the following questions.
Table 4.2.2  
-Refer to Table 4.2.2.The cross elasticity of demand for Jolt with respect to the price of Coke is

Accepted Answer

A) 0.75. 
B) 1.5. 
C) 0.40. 
D) 10. 
E) -1.5. 
A) 0.75. 
B) 1.5. 
C) 0.40. 
D) 10. 
E) -1.5.

Question 9

Short-run supply is

Accepted Answer

A) more elastic than momentary supply but less elastic than long-run supply. 
B) less elastic than momentary supply but more elastic than long-run supply. 
C) less elastic than both momentary and long-run supply. 
D) more elastic than both momentary and long-run supply. 
E) as elastic as either momentary or long-run supply. 
A) more elastic than momentary supply but less elastic than long-run supply. 
B) less elastic than momentary supply but more elastic than long-run supply. 
C) less elastic than both momentary and long-run supply. 
D) more elastic than both momentary and long-run supply. 
E) as elastic as either momentary or long-run supply.

Question 10

If a large percentage fall in the price of good A results in a small percentage decrease in the quantity supplied,then

Accepted Answer

A) demand is elastic. 
B) demand is inelastic. 
C) demand is income inelastic. 
D) supply is inelastic. 
E) supply is elastic. 
A) demand is elastic. 
B) demand is inelastic. 
C) demand is income inelastic. 
D) supply is inelastic. 
E) supply is elastic.

Question 11

The income elasticity of demand equals the percentage change in ________,other things remaining the same.

Accepted Answer

A) price divided by the percentage change in income 
B) price divided by the percentage change in quantity demanded 
C) income divided by the percentage change in quantity demanded 
D) quantity demanded divided by the percentage change in price 
E) quantity demanded divided by the percentage change in income 
A) price divided by the percentage change in income 
B) price divided by the percentage change in quantity demanded 
C) income divided by the percentage change in quantity demanded 
D) quantity demanded divided by the percentage change in price 
E) quantity demanded divided by the percentage change in income

Question 12

Use the table below to answer the following question.
Table 4.1.3
  
-Refer to Table 4.1.3.The table shows the demand schedule for computer chips.As the price rises from $200 a chip to $300 a chip,total revenue ________.So at a price of $250 a chip,demand is ________.

Accepted Answer

A) falls;inelastic 
B) rises;inelastic 
C) falls;rises 
D) rises;elastic 
E) rises;unit elastic 
A) falls;inelastic 
B) rises;inelastic 
C) falls;rises 
D) rises;elastic 
E) rises;unit elastic

Question 13

At a price of $15,Jack's quantity demanded of good A is the same as when the price rises to $16.Jack's demand for good A is

Accepted Answer

A) elastic. 
B) inelastic. 
C) perfectly elastic. 
D) unit elastic. 
E) perfectly inelastic. 
A) elastic. 
B) inelastic. 
C) perfectly elastic. 
D) unit elastic. 
E) perfectly inelastic.

Question 14

If a rise in the price of good B increases the demand for good A,then

Accepted Answer

A) A and B are substitutes and the cross elasticity of demand for good A with respect to the price of good B is positive. 
B) A and B are complements. 
C) the cross elasticity of demand between A and B is 1. 
D) A and B are substitutes and the cross elasticity of demand for good A with respect to the price of good B is negative. 
E) the demand for A is price elastic. 
A) A and B are substitutes and the cross elasticity of demand for good A with respect to the price of good B is positive. 
B) A and B are complements. 
C) the cross elasticity of demand between A and B is 1. 
D) A and B are substitutes and the cross elasticity of demand for good A with respect to the price of good B is negative. 
E) the demand for A is price elastic.

Question 15

The price elasticity of demand for oranges ________ if the quantity is measured in pounds instead of kilograms and ________ if the price is measured in dollars instead of cents.

Accepted Answer

A) changes;changes 
B) changes;does not change 
C) does not change;changes 
D) does not change;does not change 
E) increases;decreases 
A) changes;changes 
B) changes;does not change 
C) does not change;changes 
D) does not change;does not change 
E) increases;decreases

Question 16

In the nation of Transporta,the income elasticity of demand for used cars is -2.66.If incomes in this nation increase by 10 percent,

Accepted Answer

A) the quantity of used cars demanded increase by 26.6 percent. 
B) used cars will be normal goods. 
C) the quantity of used cars demanded decrease by 26.6 percent. 
D) the demand curve for used cars shifts rightward. 
E) the supply curve of used cars shifts rightward. 
A) the quantity of used cars demanded increase by 26.6 percent. 
B) used cars will be normal goods. 
C) the quantity of used cars demanded decrease by 26.6 percent. 
D) the demand curve for used cars shifts rightward. 
E) the supply curve of used cars shifts rightward.

Question 17

If a 10 percent increase in price increases the quantity supplied by 9 percent,

Accepted Answer

A) the good is a normal good. 
B) the good is an inferior good. 
C) supply is unit elastic. 
D) supply is inelastic. 
E) supply is elastic. 
A) the good is a normal good. 
B) the good is an inferior good. 
C) supply is unit elastic. 
D) supply is inelastic. 
E) supply is elastic.

Question 18

The price elasticity of demand for airplane travel one year in advance of the departure date is most likely to be

Accepted Answer

A) negative. 
B) equal to zero. 
C) between zero and 1. 
D) equal to 1. 
E) greater than 1. 
A) negative. 
B) equal to zero. 
C) between zero and 1. 
D) equal to 1. 
E) greater than 1.

Question 19

Demand is inelastic if

Accepted Answer

A) a small change in price results in a large change in quantity demanded. 
B) the quantity demanded is very responsive to a change in price. 
C) the price elasticity of demand is 0.2. 
D) the price does not change when supply increases. 
E) a 10 percent change in price results in a 1 percent change in the quantity supplied. 
A) a small change in price results in a large change in quantity demanded. 
B) the quantity demanded is very responsive to a change in price. 
C) the price elasticity of demand is 0.2. 
D) the price does not change when supply increases. 
E) a 10 percent change in price results in a 1 percent change in the quantity supplied.

Question 20

Long-run supply is

Accepted Answer

A) more elastic than momentary supply but less elastic than short-run supply. 
B) less elastic than momentary supply but more elastic than short-run supply. 
C) less elastic than both momentary and short-run supply. 
D) more elastic than both momentary and short-run supply. 
E) equal in elasticity to short-run supply. 
A) more elastic than momentary supply but less elastic than short-run supply. 
B) less elastic than momentary supply but more elastic than short-run supply. 
C) less elastic than both momentary and short-run supply. 
D) more elastic than both momentary and short-run supply. 
E) equal in elasticity to short-run supply.

The amount of time elapsed since a price change influences the price elasticity of demand because as more time passes,

A technological breakthrough lowers the cost of photocopiers.If the demand for photocopiers is price inelastic,photocopier sales

The demand for corn increases.As a result,the price of corn ,and the less elastic the supply of corn,the will be the effect on the price.

A decrease in tuition fees decreases the university's total revenue if the price elasticity of demand for university education is

Demand is unit elastic when

Total revenue from the sale of a good decreases if

For which one of the following is demand likely to be most price inelastic?

Use the table below to answer the following questions. Table 4.2.2 -Refer to Table 4.2.2.The cross elasticity of demand for Jolt with respect to the price of Coke is

Short-run supply is

If a large percentage fall in the price of good A results in a small percentage decrease in the quantity supplied,then

The income elasticity of demand equals the percentage change in ________,other things remaining the same.

Use the table below to answer the following question. Table 4.1.3 -Refer to Table 4.1.3.The table shows the demand schedule for computer chips.As the price rises from $200 a chip to $300 a chip,total revenue .So at a price of $250 a chip,demand is .

At a price of $15,Jack's quantity demanded of good A is the same as when the price rises to $16.Jack's demand for good A is

If a rise in the price of good B increases the demand for good A,then

The price elasticity of demand for oranges if the quantity is measured in pounds instead of kilograms and if the price is measured in dollars instead of cents.

In the nation of Transporta,the income elasticity of demand for used cars is -2.66.If incomes in this nation increase by 10 percent,

If a 10 percent increase in price increases the quantity supplied by 9 percent,

The price elasticity of demand for airplane travel one year in advance of the departure date is most likely to be

Demand is inelastic if

Long-run supply is

What Is Economics

The Economic Problem

Demand and Supply

Efficiency and Equity

Government Actions in Markets

Global Markets in Action

Utility and Demand

Possibilities, preferences, and Choices

Output and Costs

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Externalities

Public Goods and Common Resources

Markets for Factors of Production

Economic Inequality

Filters

Exam 4: Elasticity

The amount of time elapsed since a price change influences the price elasticity of demand because as more time passes,

A technological breakthrough lowers the cost of photocopiers.If the demand for photocopiers is price inelastic,photocopier sales

The demand for corn increases.As a result,the price of corn ________,and the less elastic the supply of corn,the ________ will be the effect on the price.

A decrease in tuition fees decreases the university's total revenue if the price elasticity of demand for university education is

Demand is unit elastic when

Total revenue from the sale of a good decreases if

For which one of the following is demand likely to be most price inelastic?

Use the table below to answer the following questions. Table 4.2.2 -Refer to Table 4.2.2.The cross elasticity of demand for Jolt with respect to the price of Coke is

Short-run supply is

If a large percentage fall in the price of good A results in a small percentage decrease in the quantity supplied,then

The income elasticity of demand equals the percentage change in ________,other things remaining the same.

Use the table below to answer the following question. Table 4.1.3 -Refer to Table 4.1.3.The table shows the demand schedule for computer chips.As the price rises from $200 a chip to $300 a chip,total revenue ________.So at a price of $250 a chip,demand is ________.

At a price of $15,Jack's quantity demanded of good A is the same as when the price rises to $16.Jack's demand for good A is

If a rise in the price of good B increases the demand for good A,then

The price elasticity of demand for oranges ________ if the quantity is measured in pounds instead of kilograms and ________ if the price is measured in dollars instead of cents.

In the nation of Transporta,the income elasticity of demand for used cars is -2.66.If incomes in this nation increase by 10 percent,

If a 10 percent increase in price increases the quantity supplied by 9 percent,

The price elasticity of demand for airplane travel one year in advance of the departure date is most likely to be

Demand is inelastic if

Long-run supply is

What Is Economics

The Economic Problem

Demand and Supply

Efficiency and Equity

Government Actions in Markets

Global Markets in Action

Utility and Demand

Possibilities, preferences, and Choices

Output and Costs

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Externalities

Public Goods and Common Resources

Markets for Factors of Production

Economic Inequality

Filters

The demand for corn increases.As a result,the price of corn ,and the less elastic the supply of corn,the will be the effect on the price.

Use the table below to answer the following question. Table 4.1.3 -Refer to Table 4.1.3.The table shows the demand schedule for computer chips.As the price rises from $200 a chip to $300 a chip,total revenue .So at a price of $250 a chip,demand is .

The price elasticity of demand for oranges if the quantity is measured in pounds instead of kilograms and if the price is measured in dollars instead of cents.