\[\begin{array}{l} \text { Demand Schedule for Ski Tickets }\\ \begin{array} { | l | l | } \hline \text { Price } ( \$ ) & \begin{array} { l } \text { Quantity } \\ \text { Demanded } ( \text { no. of } \\ \text { tickets } ) \end{array} \\ \hline 120 & 0 \\ \hline 110 & 100 \\ \hline 100 & 200 \\ \hline 90 & 300 \\ \hline 80 & 400 \\ \hline 70 & 500 \\ \hline 60 & 600 \\ \hline 50 & 700 \\ \hline 40 & 800 \\ \hline 30 & 900 \\ \hline 20 & 1000 \\ \hline 10 & 1100 \\ \hline 0 & 1200 \\ \hline \end{array} \end{array}\] TABLE 4- 2 -Refer to Table 4- 2. Price elasticity over the interval of the demand curve between prices of $90 and $70 is

A) 0.5 B) - 0.5 C) 2.0 D) - 2.0 E) 1.0 A) 0.5 B) - 0.5 C) 2.0 D) - 2.0 E) 1.0

The table below shows the demand schedule for museum admissions in a small city. $\begin{array}{|c|c|} \hline \begin{array}{c} \text { Price } \\ \text { (per visit } \\ \text { per person) }\\ \end{array} & \begin{array}{c} \text { QuantityDemanded } \\ \text { (thousands of }\\\text { person-visits per year) } \end{array} \\ \hline \$ 10 & 2 \\ \hline \$ 8 & 4 \\ \hline \$ 6 & 6 \\ \hline \$ 4 & 8 \\ \hline \$ 2 & 10 \\ \hline \end{array}$ TABLE 4- 1 -Refer to Table 4- 1. Between the prices of $8 and $10, the elasticity of demand is

A) 1/3. B) 3. C) 2. D) 2/3. E) 1. A) 1/3. B) 3. C) 2. D) 2/3. E) 1.

A) have positive income elasticity of demand. B) have negative income elasticity of demand. C) have negative elasticity of supply. D) are sometimes also inferior goods. E) do not have elasticity of demand. A) have positive income elasticity of demand. B) have negative income elasticity of demand. C) have negative elasticity of supply. D) are sometimes also inferior goods. E) do not have elasticity of demand.

Exam 4: Elasticity

Suppose you are advising the government on changes in the gasoline market. The current price is $1.00 per litre and the quantity demanded is 2.5 million litres per day. Short- run price elasticity of demand is constant at 0.3. If the supply of gasoline is reduced so that the price rises to $1.50 per litre, then quantity demanded is predicted to fall in the short run by

Free

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Question 1

Correct Answer:

Verified

D

When the percentage change in quantity demanded is greater than the percentage change in price that brought it about, demand is said to be

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(Multiple Choice)

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Question 2

Correct Answer:

Verified

A

With a downward- sloping straight- line demand curve, price elasticity of demand is

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Question 3

Correct Answer:

Verified

C

Refer to Figure 4- 2. The price elasticity of demand is continuously decreasing as the price falls in part(s)

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Question 4

Demand Schedule for Ski Tickets Price (\ ) Quantity Demanded ( no. of tickets ) 120 0 110 100 100 200 90 300 80 400 70 500 60 600 50 700 40 800 30 900 20 1000 10 1100 0 1200 TABLE 4- 2 -Refer to Table 4- 2. Price elasticity over the interval of the demand curve between prices of $90 and $70 is

(Multiple Choice)

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Question 5

FIGURE 4- 2 -Refer to Figure 4- 2. Demand is inelastic

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Question 6

When national income falls, sales of vacation packages also fall, even at constant prices. This fact suggests that the _ _ elasticity of demand for vacation packages is .

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Question 7

FIGURE 4- 2 -Refer to Figure 4- 2. As price decreases, total expenditure increases, reaches a maximum, and then decreases for the demand curve in diagram(s)

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Question 8

The price elasticity of demand for a product tends to be greater the

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Question 9

FIGURE 4- 2 -Refer to Figure 4- 2. In part 3 of the figure, the elasticity of demand between prices $5 and $10 is

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Question 10

The imposition of an excise tax usually causes the price paid by consumers to , while the price received by sellers .

(Multiple Choice)

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Question 11

The table below shows the demand schedule for museum admissions in a small city. Price (per visit per person) QuantityDemanded (thousands of person-visits per year) \ 10 2 \ 8 4 \ 6 6 \ 4 8 \ 2 10 TABLE 4- 1 -Refer to Table 4- 1. Between the prices of $8 and $10, the elasticity of demand is

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Question 12

Suppose that the quantity demanded of skipping ropes rises from 1250 to 1750 units when the price falls from $1.25 to $0.75 per unit. The price elasticity of demand for this product is

(Multiple Choice)

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Question 13

The "economic incidence" of an excise tax illustrates

(Multiple Choice)

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Question 14

Price elasticity of demand

(Multiple Choice)

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Question 15

Normal goods

(Multiple Choice)

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Question 16

An increase in income will

(Multiple Choice)

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Question 17

If the total revenue of producers rises for an initial cut in the price of their product but falls for further reductions in price, the price elasticity of demand for the product

(Multiple Choice)

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Question 18

When the percentage change in quantity demanded is less than the percentage change in price that brought it about, demand is said to be

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Question 19

If per capita income increases by 10 percent and household expenditure on fur coats increases by 15 percent, one can conclude that the price elasticity of demand for fur coats is

(Multiple Choice)

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Question 20

When the percentage change in quantity demanded is greater than the percentage change in price that brought it about, demand is said to be

With a downward- sloping straight- line demand curve, price elasticity of demand is

Refer to Figure 4- 2. The price elasticity of demand is continuously decreasing as the price falls in part(s)

Demand Schedule for Ski Tickets Price (\ ) Quantity Demanded ( no. of tickets ) 120 0 110 100 100 200 90 300 80 400 70 500 60 600 50 700 40 800 30 900 20 1000 10 1100 0 1200 TABLE 4- 2 -Refer to Table 4- 2. Price elasticity over the interval of the demand curve between prices of $90 and $70 is

FIGURE 4- 2 -Refer to Figure 4- 2. Demand is inelastic

When national income falls, sales of vacation packages also fall, even at constant prices. This fact suggests that the _ _ elasticity of demand for vacation packages is .

FIGURE 4- 2 -Refer to Figure 4- 2. As price decreases, total expenditure increases, reaches a maximum, and then decreases for the demand curve in diagram(s)

The price elasticity of demand for a product tends to be greater the

FIGURE 4- 2 -Refer to Figure 4- 2. In part 3 of the figure, the elasticity of demand between prices $5 and $10 is

The imposition of an excise tax usually causes the price paid by consumers to , while the price received by sellers .

The table below shows the demand schedule for museum admissions in a small city. Price (per visit per person) QuantityDemanded (thousands of person-visits per year) \ 10 2 \ 8 4 \ 6 6 \ 4 8 \ 2 10 TABLE 4- 1 -Refer to Table 4- 1. Between the prices of $8 and $10, the elasticity of demand is

Suppose that the quantity demanded of skipping ropes rises from 1250 to 1750 units when the price falls from $1.25 to $0.75 per unit. The price elasticity of demand for this product is

The "economic incidence" of an excise tax illustrates

Price elasticity of demand

Normal goods

An increase in income will

If the total revenue of producers rises for an initial cut in the price of their product but falls for further reductions in price, the price elasticity of demand for the product

When the percentage change in quantity demanded is less than the percentage change in price that brought it about, demand is said to be

If per capita income increases by 10 percent and household expenditure on fur coats increases by 15 percent, one can conclude that the price elasticity of demand for fur coats is

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