Question 1

Price elasticity of demand is a measure of the responsiveness of quantity demanded to changes in

Accepted Answer

A) interest rates. 
B) price. 
C) supply. 
D) demand. 
A) interest rates. 
B) price. 
C) supply. 
D) demand.

Question 2

Airlines that try to lower fares in order to increase revenue must believe that the demand for airline service is

Accepted Answer

A) price inelastic. 
B) income elastic. 
C) income inelastic. 
D) price elastic. 
E) cross-price elastic. 
A) price inelastic. 
B) income elastic. 
C) income inelastic. 
D) price elastic. 
E) cross-price elastic.

Question 3

If total revenue does not change as a result of a rise in the price of a given good, it follows that demand is

Accepted Answer

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

Question 4

The longer the period of time consumers have to adjust to price changes, the __________ the __________ elasticity of demand.

Accepted Answer

A) lower, price 
B) lower, income 
C) higher, price 
D) higher, income 
A) lower, price 
B) lower, income 
C) higher, price 
D) higher, income

Price elasticity of demand is a measure of the responsiveness of quantity demanded to changes in

Airlines that try to lower fares in order to increase revenue must believe that the demand for airline service is

If total revenue does not change as a result of a rise in the price of a given good, it follows that demand is

The longer the period of time consumers have to adjust to price changes, the the elasticity of demand.

What Economics Is About

Production Possibilities Frontier Framework

Supply and Demand: Theory

Prices: Free, Controlled, and Relative

Supply, Demand, and Price: Applications

Consumer Choice: Maximizing Utility and Behavioral Economics

Production and Costs

Perfect Competition

Monopoly

Monopolistic Competition, Oligopoly, and Game Theory

Government and Product Markets: Antitrust and Regulation

Factor Markets: With Emphasis on the Labor Market

Wages, Union, and Labor

The Distribution of Income and Poverty

Interest, Rent, and Profit

Market Failure: Externalities, Public Goods, and Asymmetric Information

Public Choice and Special-Interest-Group Politics

Building Theories to Explain Everyday Life: From Observations to Questions to Theories to Predictions

International Trade

International Finance

The Economic Case for and Against Government: Five Topics Considered

Stocks, Bonds, Futures, and Options

Filters

Exam 6: Elasticity

Price elasticity of demand is a measure of the responsiveness of quantity demanded to changes in

Airlines that try to lower fares in order to increase revenue must believe that the demand for airline service is

If total revenue does not change as a result of a rise in the price of a given good, it follows that demand is

The longer the period of time consumers have to adjust to price changes, the __________ the __________ elasticity of demand.

What Economics Is About

Production Possibilities Frontier Framework

Supply and Demand: Theory

Prices: Free, Controlled, and Relative

Supply, Demand, and Price: Applications

Consumer Choice: Maximizing Utility and Behavioral Economics

Production and Costs

Perfect Competition

Monopoly

Monopolistic Competition, Oligopoly, and Game Theory

Government and Product Markets: Antitrust and Regulation

Factor Markets: With Emphasis on the Labor Market

Wages, Union, and Labor

The Distribution of Income and Poverty

Interest, Rent, and Profit

Market Failure: Externalities, Public Goods, and Asymmetric Information

Public Choice and Special-Interest-Group Politics

Building Theories to Explain Everyday Life: From Observations to Questions to Theories to Predictions

International Trade

International Finance

The Economic Case for and Against Government: Five Topics Considered

Stocks, Bonds, Futures, and Options

Filters

The longer the period of time consumers have to adjust to price changes, the the elasticity of demand.