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

Suppose the Nunavut government decides to repair Iqaluit roads.One way to generate sufficient funds for this plan is to increase taxes on gasoline.The government will be able to raise total revenue from gasoline sales only if the demand for gasoline is

Accepted Answer

A) perfectly elastic. 
B) equal to the supply of gasoline. 
C) unit elastic. 
D) inelastic. 
E) elastic. 
A) perfectly elastic. 
B) equal to the supply of gasoline. 
C) unit elastic. 
D) inelastic. 
E) elastic.

Question 3

If the quantity of chicken demanded increases by 1.25 percent when the price of beef increases by 2.5 percent,the cross elasticity of demand between chicken and beef is

Accepted Answer

A) 3.125. 
B) -3.125. 
C) -0.5. 
D) 2.0. 
E) 0.5. 
A) 3.125. 
B) -3.125. 
C) -0.5. 
D) 2.0. 
E) 0.5.

Question 4

Preferences for brussels sprouts increase.The price of brussels sprouts will not change if the price elasticity of

Accepted Answer

A) demand is 0. 
B) demand is 1. 
C) supply is 0. 
D) supply is 1. 
E) supply is infinity. 
A) demand is 0. 
B) demand is 1. 
C) supply is 0. 
D) supply is 1. 
E) supply is infinity.

Question 5

Use the table below to answer the following question.
Table 4.1.2
  
-Refer to Table 4.1.2.The table shows two points on the demand curve for volleyballs.What is the price elasticity of demand between these two points?

Accepted Answer

A) 2.5. 
B) 2.0. 
C) 0.5. 
D) 0.4. 
E) none of the above 
A) 2.5. 
B) 2.0. 
C) 0.5. 
D) 0.4. 
E) none of the above

Question 6

If good A is a substitute for good B,then the cross elasticity of demand is

Accepted Answer

A) 12. 
B) infinity. 
C) positive. 
D) zero. 
E) less than zero. 
A) 12. 
B) infinity. 
C) positive. 
D) zero. 
E) less than zero.

Question 7

When Erika's income increases by 6 percent,her demand for tickets to professional hockey games increases by 3 percent.Erika's demand for tickets is income ________.For Erika,hockey tickets are ________ good.

Accepted Answer

A) elastic;a normal 
B) inelastic;an inferior 
C) elastic;an inferior 
D) inelastic;a normal 
E) inelastic;a normative 
A) elastic;a normal 
B) inelastic;an inferior 
C) elastic;an inferior 
D) inelastic;a normal 
E) inelastic;a normative

Question 8

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.

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

Suppose the Nunavut government decides to repair Iqaluit roads.One way to generate sufficient funds for this plan is to increase taxes on gasoline.The government will be able to raise total revenue from gasoline sales only if the demand for gasoline is

If the quantity of chicken demanded increases by 1.25 percent when the price of beef increases by 2.5 percent,the cross elasticity of demand between chicken and beef is

Preferences for brussels sprouts increase.The price of brussels sprouts will not change if the price elasticity of

Use the table below to answer the following question. Table 4.1.2 -Refer to Table 4.1.2.The table shows two points on the demand curve for volleyballs.What is the price elasticity of demand between these two points?

If good A is a substitute for good B,then the cross elasticity of demand is

When Erika's income increases by 6 percent,her demand for tickets to professional hockey games increases by 3 percent.Erika's demand for tickets is income .For Erika,hockey tickets are good.

Demand is inelastic if

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

Organizing Production

Output and Costs

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Externalities

Public Goods and Common Resources

Markets for Factors of Production

Economic Inequality

Measuring GDP and Economic Growth

Monitoring Jobs and Inflation

Economic Growth

Finance, Saving, and Investment

Money, the Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers: The Keynesian Model

Canadian Inflation, Unemployment, and Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

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

Suppose the Nunavut government decides to repair Iqaluit roads.One way to generate sufficient funds for this plan is to increase taxes on gasoline.The government will be able to raise total revenue from gasoline sales only if the demand for gasoline is

If the quantity of chicken demanded increases by 1.25 percent when the price of beef increases by 2.5 percent,the cross elasticity of demand between chicken and beef is

Preferences for brussels sprouts increase.The price of brussels sprouts will not change if the price elasticity of

Use the table below to answer the following question. Table 4.1.2 -Refer to Table 4.1.2.The table shows two points on the demand curve for volleyballs.What is the price elasticity of demand between these two points?

If good A is a substitute for good B,then the cross elasticity of demand is

When Erika's income increases by 6 percent,her demand for tickets to professional hockey games increases by 3 percent.Erika's demand for tickets is income ________.For Erika,hockey tickets are ________ good.

Demand is inelastic if

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

Organizing Production

Output and Costs

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Externalities

Public Goods and Common Resources

Markets for Factors of Production

Economic Inequality

Measuring GDP and Economic Growth

Monitoring Jobs and Inflation

Economic Growth

Finance, Saving, and Investment

Money, the Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers: The Keynesian Model

Canadian Inflation, Unemployment, and Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Filters

When Erika's income increases by 6 percent,her demand for tickets to professional hockey games increases by 3 percent.Erika's demand for tickets is income .For Erika,hockey tickets are good.