Question 1

When a 2 per cent increase in price generates a greater than 2 per cent decrease in quantity demanded,then:

Accepted Answer

A) demand is price inelastic. 
B) total revenue increases. 
C) demand is positively sloped. 
D) demand is unit elastic. 
E) total revenue decreases. 
A) demand is price inelastic. 
B) total revenue increases. 
C) demand is positively sloped. 
D) demand is unit elastic. 
E) total revenue decreases.

Question 2

Suppose that when price of a good is $10,quantity supplied is 20 and when price is $6,quantity supplied is 12.The price elasticity of supply is:

Accepted Answer

A) 0.5. 
B) 0.8. 
C) 1. 
D) 1.5. 
E) 2. 
A) 0.5. 
B) 0.8. 
C) 1. 
D) 1.5. 
E) 2.

Question 3

Which of the following goods is likely to have the most elastic demand curve?

Accepted Answer

A) Tobacco products. 
B) Petrol. 
C) Medical care. 
D) Honda automobiles. 
A) Tobacco products. 
B) Petrol. 
C) Medical care. 
D) Honda automobiles.

Question 4

If a 5 per cent decrease in the price of a good produces a 5 per cent increase in the quantity demanded,the price elasticity of demand is:

Accepted Answer

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

When a 2 per cent increase in price generates a greater than 2 per cent decrease in quantity demanded,then:

Suppose that when price of a good is $10,quantity supplied is 20 and when price is $6,quantity supplied is 12.The price elasticity of supply is:

Which of the following goods is likely to have the most elastic demand curve?

If a 5 per cent decrease in the price of a good produces a 5 per cent increase in the quantity demanded,the price elasticity of demand is:

Thinking like an economist

Production possibilities and opportunity cost

Market demand and supply

Markets in action

Production costs

Perfect competition

Monopoly

Monopolistic competition and oligopoly

Policy issues: resource taxes and climate change

Measuring the size of the economy

Business cycles and economic growth

Inflation and unemployment

A simple model of the macro economy

The monetary and financial system

Macroeconomic policy I: monetary policy

Macroeconomic policy II: fiscal policy

International trade and finance

Applying graphs to economics

Filters

Exam 5: Elasticity of demand and supply

When a 2 per cent increase in price generates a greater than 2 per cent decrease in quantity demanded,then:

Suppose that when price of a good is $10,quantity supplied is 20 and when price is $6,quantity supplied is 12.The price elasticity of supply is:

Which of the following goods is likely to have the most elastic demand curve?

If a 5 per cent decrease in the price of a good produces a 5 per cent increase in the quantity demanded,the price elasticity of demand is:

Thinking like an economist

Production possibilities and opportunity cost

Market demand and supply

Markets in action

Production costs

Perfect competition

Monopoly

Monopolistic competition and oligopoly

Policy issues: resource taxes and climate change

Measuring the size of the economy

Business cycles and economic growth

Inflation and unemployment

A simple model of the macro economy

The monetary and financial system

Macroeconomic policy I: monetary policy

Macroeconomic policy II: fiscal policy

International trade and finance

Applying graphs to economics

Filters