Question 1

If a 10 percent rise in price leads to an 8 percent decrease in quantity demanded,the price elasticity of demand is

Accepted Answer

A) 0.8. 
B) 1.25. 
C) 8. 
D) 0.125. 
E) 80. 
A) 0.8. 
B) 1.25. 
C) 8. 
D) 0.125. 
E) 80.

Question 2

If a 10 percent increase in income results in a 5 percent increase in quantity demanded,what is the income elasticity of demand?

Accepted Answer

A) 0.5 
B) -0.5 
C) 2.0 
D) -2.0 
E) 1.5 
A) 0.5 
B) -0.5 
C) 2.0 
D) -2.0 
E) 1.5

Question 3

If the quantity of carrots demanded increases by a large percentage when income increases by a small amount,the demand for carrots is

Accepted Answer

A) price elastic. 
B) price inelastic. 
C) income inferior. 
D) income inelastic. 
E) income elastic. 
A) price elastic. 
B) price inelastic. 
C) income inferior. 
D) income inelastic. 
E) income elastic.

Question 4

When the price of a good increases by 5 percent,the quantity demanded decreases by 10 percent.The price elasticity of demand is ________.A price rise will ________ total revenue.

Accepted Answer

A) 2.0;decrease 
B) 0.5;decrease 
C) 2.0;increase 
D) 0.5;increase 
E) -2.0;decrease 
A) 2.0;decrease 
B) 0.5;decrease 
C) 2.0;increase 
D) 0.5;increase 
E) -2.0;decrease

Question 5

Supply is inelastic if

Accepted Answer

A) a small percentage change in price results in a larger percentage change in quantity supplied. 
B) a large percentage change in price results in a smaller percentage change in quantity supplied. 
C) the good is a normal good. 
D) the good is an inferior good. 
E) the good has many substitutes. 
A) a small percentage change in price results in a larger percentage change in quantity supplied. 
B) a large percentage change in price results in a smaller percentage change in quantity supplied. 
C) the good is a normal good. 
D) the good is an inferior good. 
E) the good has many substitutes.

Question 6

If the cross elasticity of demand between beef and bison is 1.5,then a 3 percent increase in the price of beef will lead to a ________ in the quantity of bison demanded.

Accepted Answer

A) 4.5 percent increase 
B) 4.5 percent decrease 
C) 2 percent increase 
D) 2 percent decrease 
E) 0.5 percent increase 
A) 4.5 percent increase 
B) 4.5 percent decrease 
C) 2 percent increase 
D) 2 percent decrease 
E) 0.5 percent increase

If a 10 percent rise in price leads to an 8 percent decrease in quantity demanded,the price elasticity of demand is

If a 10 percent increase in income results in a 5 percent increase in quantity demanded,what is the income elasticity of demand?

If the quantity of carrots demanded increases by a large percentage when income increases by a small amount,the demand for carrots is

When the price of a good increases by 5 percent,the quantity demanded decreases by 10 percent.The price elasticity of demand is .A price rise will total revenue.

Supply is inelastic if

If the cross elasticity of demand between beef and bison is 1.5,then a 3 percent increase in the price of beef will lead to a ________ in the quantity of bison demanded.

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

If a 10 percent rise in price leads to an 8 percent decrease in quantity demanded,the price elasticity of demand is

If a 10 percent increase in income results in a 5 percent increase in quantity demanded,what is the income elasticity of demand?

If the quantity of carrots demanded increases by a large percentage when income increases by a small amount,the demand for carrots is

When the price of a good increases by 5 percent,the quantity demanded decreases by 10 percent.The price elasticity of demand is ________.A price rise will ________ total revenue.

Supply is inelastic if

If the cross elasticity of demand between beef and bison is 1.5,then a 3 percent increase in the price of beef will lead to a ________ in the quantity of bison demanded.

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

When the price of a good increases by 5 percent,the quantity demanded decreases by 10 percent.The price elasticity of demand is .A price rise will total revenue.