Question 1

When the price of pickles increases by 10 percent, the quantity demanded of pickles decreases by 10 percent. The demand for pickles is:

Accepted Answer

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

Question 2

If you buy a plane ticket at the last minute, your demand is likely to be:

Accepted Answer

A)  inelastic. 
B)  perfectly elastic. 
C)  relatively. 
D)  unit-elastic. 
A)  inelastic. 
B)  perfectly elastic. 
C)  relatively. 
D)  unit-elastic.

Question 3

The way that a burden of a tax is shared is determined by:

Accepted Answer

A)  whether the tax is placed on buyers or sellers of a good. 
B)  the elasticities of supply and demand. 
C)  the cross-price elasticity of demand. 
D)  the income elasticity of demand. 
A)  whether the tax is placed on buyers or sellers of a good. 
B)  the elasticities of supply and demand. 
C)  the cross-price elasticity of demand. 
D)  the income elasticity of demand.

Question 4

The cross-price elasticity of strawberries and blueberries is equal to 2. What can be concluded based on this information?

Accepted Answer

A)  Both goods are normal goods. 
B)  Both goods are inferior goods. 
C)  The goods are complements. 
D)  The goods are substitutes. 
A)  Both goods are normal goods. 
B)  Both goods are inferior goods. 
C)  The goods are complements. 
D)  The goods are substitutes.

Question 5

Describe what information the sign provides for price elasticity of demand, price elasticity of supply, cross-price elasticity of demand, and income elasticity of demand.

Accepted Answer

The sign for the price elasticity of dem

Question 6

A good with an income elasticity that is _____ is a luxury good.

Accepted Answer

A)  negative 
B)  positive 
C)  greater than 1 
D)  less than 1 
A)  negative 
B)  positive 
C)  greater than 1 
D)  less than 1

Question 7

What happens to total revenue if the price is increased for a good with perfectly elastic demand?

Accepted Answer

A)  It increases dramatically. 
B)  It decreases slightly. 
C)  It stays the same. 
D)  It falls to zero. 
A)  It increases dramatically. 
B)  It decreases slightly. 
C)  It stays the same. 
D)  It falls to zero.

Question 8

When the price of plane tickets to Ireland increases by 20 percent, the quantity demanded of plane tickets to Ireland decreases by 10 percent. Tickets to Ireland are:

Accepted Answer

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

Question 9

The price elasticity of demand for plastic drinking straws is 3.5, and the price elasticity of supply of plastic drinking straws is 0.8. What can be concluded based on this information?

Accepted Answer

A)  Consumers consider plastic drinking straws to be a necessity. 
B)  The cost of producing additional units of drinking straws is very high. 
C)  Consumers consider plastic drinking straws to be normal goods. 
D)  If a tax were placed on plastic drinking straws, sellers would pay a higher burden of a tax than the buyers would. 
A)  Consumers consider plastic drinking straws to be a necessity. 
B)  The cost of producing additional units of drinking straws is very high. 
C)  Consumers consider plastic drinking straws to be normal goods. 
D)  If a tax were placed on plastic drinking straws, sellers would pay a higher burden of a tax than the buyers would.

Question 10

(Use Figure: The Demand for Scented Candles) Use the figure The Demand for Scented Candles. What is the price elasticity of demand when price decreases from $3 to $1?
​
Figure: The Demand for Scented Candles

Accepted Answer

A)  19 
B)  0.9 
C)  0.05 
D)  1 
A)  19 
B)  0.9 
C)  0.05 
D)  1

Question 11

When the price of smoots increases by 20 percent, the quantity demanded of pells decreases by 40 percent. Calculate the appropriate elasticity based on this information and interpret your results.

Accepted Answer

Mathematically, this is expres

Question 12

Total revenue is the:

Accepted Answer

A)  same as profit. 
B)  total amount of money that a firm receives from selling a good. 
C)  total amount of money that a firm receives from selling a good minus what it costs to produce that good. 
D)  same as the price of a good. 
A)  same as profit. 
B)  total amount of money that a firm receives from selling a good. 
C)  total amount of money that a firm receives from selling a good minus what it costs to produce that good. 
D)  same as the price of a good.

Question 13

The formula for income elasticity of demand is the same as the formula for price elasticity of demand, except that the word _____ is replaced by the word:

Accepted Answer

A)  demand; supply. 
B)  price; quantity. 
C)  price; income. 
D)  demand; income. 
A)  demand; supply. 
B)  price; quantity. 
C)  price; income. 
D)  demand; income.

Question 14

Demand is likely to be inelastic if:

Accepted Answer

A)  consumers are able to shop around for the best price. 
B)  a good costs a lot. 
C)  consumers have little choice but to purchase a good. 
D)  a good has many close substitutes. 
A)  consumers are able to shop around for the best price. 
B)  a good costs a lot. 
C)  consumers have little choice but to purchase a good. 
D)  a good has many close substitutes.

Question 15

What is the correct way to calculate price elasticity of demand?

Accepted Answer

A)    
B)    
C)    
D)    
A)    
B)    
C)    
D)

Question 16

Use the table Price Elasticities of Demand for Four Goods II. How are these goods ranked from least responsive to a price change to most responsive to a price change?

Accepted Answer

A)  cheeseburgers, nachos, churros, hot dogs 
B)  nachos, hot dogs, churros, cheeseburgers 
C)  cheeseburgers, hot dogs, churros, nachos 
D)  cheeseburgers, churros, hot dogs, nachos 
A)  cheeseburgers, nachos, churros, hot dogs 
B)  nachos, hot dogs, churros, cheeseburgers 
C)  cheeseburgers, hot dogs, churros, nachos 
D)  cheeseburgers, churros, hot dogs, nachos

Question 17

When Jane raises the price of haircuts by 10 percent, the quantity demanded decreases by 5 percent. The demand for haircuts is _____, and Jane's total revenue _____ as a result of the price change.

Accepted Answer

A)  elastic; increases 
B)  inelastic; decreases 
C)  elastic; decreases 
D)  inelastic; increases 
A)  elastic; increases 
B)  inelastic; decreases 
C)  elastic; decreases 
D)  inelastic; increases

Question 18

When the price of sneakers decreases by 10 percent, Anaiah buys 40 percent more flowers. Anaiah's price elasticity of demand is equal to _____, and his demand is:

Accepted Answer

A)  0.25; inelastic. 
B)  4; unit elastic. 
C)  4; elastic. 
D)  2; inelastic. 
A)  0.25; inelastic. 
B)  4; unit elastic. 
C)  4; elastic. 
D)  2; inelastic.

Question 19

Perfectly inelastic demand curves are:

Accepted Answer

A)  vertical. 
B)  horizontal. 
C)  upward sloping. 
D)  downward sloping. 
A)  vertical. 
B)  horizontal. 
C)  upward sloping. 
D)  downward sloping.

Question 20

If consumers' sensitivity to price changes makes demand elastic, then a price decrease leads to:

Accepted Answer

A)  an increase in supply. 
B)  an increase in total revenue. 
C)  a decrease in total revenue. 
D)  a decrease in supply. 
A)  an increase in supply. 
B)  an increase in total revenue. 
C)  a decrease in total revenue. 
D)  a decrease in supply.

When the price of pickles increases by 10 percent, the quantity demanded of pickles decreases by 10 percent. The demand for pickles is:

If you buy a plane ticket at the last minute, your demand is likely to be:

The way that a burden of a tax is shared is determined by:

The cross-price elasticity of strawberries and blueberries is equal to 2. What can be concluded based on this information?

Describe what information the sign provides for price elasticity of demand, price elasticity of supply, cross-price elasticity of demand, and income elasticity of demand.

A good with an income elasticity that is _____ is a luxury good.

What happens to total revenue if the price is increased for a good with perfectly elastic demand?

When the price of plane tickets to Ireland increases by 20 percent, the quantity demanded of plane tickets to Ireland decreases by 10 percent. Tickets to Ireland are:

The price elasticity of demand for plastic drinking straws is 3.5, and the price elasticity of supply of plastic drinking straws is 0.8. What can be concluded based on this information?

(Use Figure: The Demand for Scented Candles) Use the figure The Demand for Scented Candles. What is the price elasticity of demand when price decreases from $3 to $1? Figure: The Demand for Scented Candles

When the price of smoots increases by 20 percent, the quantity demanded of pells decreases by 40 percent. Calculate the appropriate elasticity based on this information and interpret your results.

Total revenue is the:

The formula for income elasticity of demand is the same as the formula for price elasticity of demand, except that the word _____ is replaced by the word:

Demand is likely to be inelastic if:

What is the correct way to calculate price elasticity of demand?

Use the table Price Elasticities of Demand for Four Goods II. How are these goods ranked from least responsive to a price change to most responsive to a price change?

When Jane raises the price of haircuts by 10 percent, the quantity demanded decreases by 5 percent. The demand for haircuts is _, and Jane's total revenue _ as a result of the price change.

When the price of sneakers decreases by 10 percent, Anaiah buys 40 percent more flowers. Anaiah's price elasticity of demand is equal to _____, and his demand is:

Perfectly inelastic demand curves are:

If consumers' sensitivity to price changes makes demand elastic, then a price decrease leads to:

Foundations of Economics

Extension: Understanding Graphs

Markets and Economies

Demand

Supply

Market Equilibrium

Consumer Behavior

Production Costs

Perfect Competition

Market Power

Factor Markets

Market Failure and Government Failure

Measuring an Economys Performance

Aggregate Demand and Aggregate Supply

Fiscal Policy

Money and Banking

Monetary Policy

Economic Growth and Development

International Trade and Finance

Filters

Exam 6: Elasticity

When the price of pickles increases by 10 percent, the quantity demanded of pickles decreases by 10 percent. The demand for pickles is:

If you buy a plane ticket at the last minute, your demand is likely to be:

The way that a burden of a tax is shared is determined by:

The cross-price elasticity of strawberries and blueberries is equal to 2. What can be concluded based on this information?

Describe what information the sign provides for price elasticity of demand, price elasticity of supply, cross-price elasticity of demand, and income elasticity of demand.

A good with an income elasticity that is _____ is a luxury good.

What happens to total revenue if the price is increased for a good with perfectly elastic demand?

When the price of plane tickets to Ireland increases by 20 percent, the quantity demanded of plane tickets to Ireland decreases by 10 percent. Tickets to Ireland are:

The price elasticity of demand for plastic drinking straws is 3.5, and the price elasticity of supply of plastic drinking straws is 0.8. What can be concluded based on this information?

(Use Figure: The Demand for Scented Candles) Use the figure The Demand for Scented Candles. What is the price elasticity of demand when price decreases from $3 to $1? ​ Figure: The Demand for Scented Candles

When the price of smoots increases by 20 percent, the quantity demanded of pells decreases by 40 percent. Calculate the appropriate elasticity based on this information and interpret your results.

Total revenue is the:

The formula for income elasticity of demand is the same as the formula for price elasticity of demand, except that the word _____ is replaced by the word:

Demand is likely to be inelastic if:

What is the correct way to calculate price elasticity of demand?

Use the table Price Elasticities of Demand for Four Goods II. How are these goods ranked from least responsive to a price change to most responsive to a price change?

When Jane raises the price of haircuts by 10 percent, the quantity demanded decreases by 5 percent. The demand for haircuts is _____, and Jane's total revenue _____ as a result of the price change.

When the price of sneakers decreases by 10 percent, Anaiah buys 40 percent more flowers. Anaiah's price elasticity of demand is equal to _____, and his demand is:

Perfectly inelastic demand curves are:

If consumers' sensitivity to price changes makes demand elastic, then a price decrease leads to:

Foundations of Economics

Extension: Understanding Graphs

Markets and Economies

Demand

Supply

Market Equilibrium

Consumer Behavior

Production Costs

Perfect Competition

Market Power

Factor Markets

Market Failure and Government Failure

Measuring an Economys Performance

Aggregate Demand and Aggregate Supply

Fiscal Policy

Money and Banking

Monetary Policy

Economic Growth and Development

International Trade and Finance

Filters

(Use Figure: The Demand for Scented Candles) Use the figure The Demand for Scented Candles. What is the price elasticity of demand when price decreases from $3 to $1? Figure: The Demand for Scented Candles

When Jane raises the price of haircuts by 10 percent, the quantity demanded decreases by 5 percent. The demand for haircuts is _, and Jane's total revenue _ as a result of the price change.