Question 1

-In the figure above, using the midpoint method, the price elasticity of demand when the price falls from $6 to $5 is equal to

Accepted Answer

A) 2.50. 
B) 1.63. 
C) 1.10. 
D) 0.91. 
E) 1.00. 
A) 2.50. 
B) 1.63. 
C) 1.10. 
D) 0.91. 
E) 1.00.

Question 2

The longer the time that has elapsed since the price of a good changed, the

Accepted Answer

A) more elastic the demand for that good. 
B) steeper the demand curve. 
C) less elastic the demand for that good. 
D) smaller the amount of that good bought. 
E) fewer substitutes available for the good. 
A) more elastic the demand for that good. 
B) steeper the demand curve. 
C) less elastic the demand for that good. 
D) smaller the amount of that good bought. 
E) fewer substitutes available for the good.

Question 3

When the percentage change in the quantity supplied is less than the percentage change in price, the supply is

Accepted Answer

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

Question 4

We calculate the price elasticity of demand as the

Accepted Answer

A) ratio of the percentage change in the quantity demanded to the percentage change in price. 
B) change in quantity divided by the change in price. 
C) ratio of the percentage change in the price to the percentage change in quantity. 
D) percentage change in the quantity demanded divided by the percentage change in income. 
E) equilibrium quantity divided by the equilibrium price. 
A) ratio of the percentage change in the quantity demanded to the percentage change in price. 
B) change in quantity divided by the change in price. 
C) ratio of the percentage change in the price to the percentage change in quantity. 
D) percentage change in the quantity demanded divided by the percentage change in income. 
E) equilibrium quantity divided by the equilibrium price.

Question 5

Suppose the price of a movie falls from $9 to $7.Using the midpoint method, what is the percentage change in price?

Accepted Answer

A) 33 percent 
B) -33 percent 
C) 25 percent 
D) -25 percent 
E) -97 percent 
A) 33 percent 
B) -33 percent 
C) 25 percent 
D) -25 percent 
E) -97 percent

Question 6

If the supply of a good decreases and it causes total revenue to increase, this shows that the good has an

Accepted Answer

A) inelastic demand 
B) elastic demand 
C) unit elastic demand 
D) inelastic supply 
E) elastic supply 
A) inelastic demand 
B) elastic demand 
C) unit elastic demand 
D) inelastic supply 
E) elastic supply

Question 7

Suppose the Oakland Raiders football team increases their season ticket prices and total revenue from ticket sales falls, but not to zero.This fact means that the demand for Raiders tickets is

Accepted Answer

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

Question 8

If a good has only a few, poor substitutes, is its demand elastic or inelastic?

Accepted Answer

The demand is inelastic.The fe

Question 9

-In the figure above, what happens to total revenue as we move from point A to point B?

Accepted Answer

A) It increases. 
B) It decreases. 
C) It remains constant. 
D) It becomes negative. 
E) More information about the elasticity of demand is needed to determine if it increases, decreases, or does not change. 
A) It increases. 
B) It decreases. 
C) It remains constant. 
D) It becomes negative. 
E) More information about the elasticity of demand is needed to determine if it increases, decreases, or does not change.

Question 10

When hamburger is $3 per pound, Ms.Rush buys 6 pounds.When hamburger is $2 per pound, Ms.Rush buys 10 pounds.Describe Ms.Rush's demand between these two prices.

Accepted Answer

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

Question 11

-In the figure above, what is the total revenue at point A?

Accepted Answer

A) $20 
B) $150 
C) $170 
D) $3,000 
E) 150 quantity units 
A) $20 
B) $150 
C) $170 
D) $3,000 
E) 150 quantity units

Question 12

-The demand curve shown in the figure above is ________ over the price range from $95 to $105 per trip.

Accepted Answer

A) perfectly elastic 
B) perfectly inelastic 
C) unit elastic 
D) elastic but not perfectly elastic 
E) inelastic but not perfectly inelastic 
A) perfectly elastic 
B) perfectly inelastic 
C) unit elastic 
D) elastic but not perfectly elastic 
E) inelastic but not perfectly inelastic

Question 13

Sergio's rentals of Blu-ray movies increase by 10 percent when her income increases by 30 percent.Based on this information, we know that for Sergio Blu-ray movies

Accepted Answer

A) are complements. 
B) are substitutes. 
C) are inferior goods. 
D) have an inelastic demand. 
E) are normal goods. 
A) are complements. 
B) are substitutes. 
C) are inferior goods. 
D) have an inelastic demand. 
E) are normal goods.

Question 14

Demand is elastic if

Accepted Answer

A) consumers respond strongly to changes in the product's price. 
B) a large percentage change in price brings about a small percentage change in quantity demanded. 
C) a small percentage change in price brings about a small percentage change in quantity demanded. 
D) the quantity demanded is not responsive to price changes. 
E) the demand curve is vertical. 
A) consumers respond strongly to changes in the product's price. 
B) a large percentage change in price brings about a small percentage change in quantity demanded. 
C) a small percentage change in price brings about a small percentage change in quantity demanded. 
D) the quantity demanded is not responsive to price changes. 
E) the demand curve is vertical.

Question 15

Suppose the current price of barley is $7 per bushel and at that price 100,000 bushels are grown by a Colorado farmer.If the price of barley rises to $8 and quantity supplied increases to 130,000 bushels, then using the midpoint method, the price elasticity of supply for barley equals

Accepted Answer

A) 13.33. 
B) 26.78. 
C) 1.96. 
D) 0.51. 
E) Zero. 
A) 13.33. 
B) 26.78. 
C) 1.96. 
D) 0.51. 
E) Zero.

Question 16

When the percentage change in the quantity demanded exceeds the percentage change in price, then demand is

Accepted Answer

A) inelastic. 
B) unit elastic. 
C) elastic. 
D) irrelevant. 
E) undefined. 
A) inelastic. 
B) unit elastic. 
C) elastic. 
D) irrelevant. 
E) undefined.

Question 17

If the price of a a good increases by 10 percent and the quantity supplied increases by 5 percent, then the elasticity of supply is

Accepted Answer

A) greater than one and supply is elastic. 
B) negative and supply is inelastic. 
C) less than one and supply is elastic. 
D) less than one and supply is inelastic. 
E) greater than one and supply is inelastic. 
A) greater than one and supply is elastic. 
B) negative and supply is inelastic. 
C) less than one and supply is elastic. 
D) less than one and supply is inelastic. 
E) greater than one and supply is inelastic.

Question 18

When the percentage change in the quantity demanded equals the percentage change in price, then demand is

Accepted Answer

A) inelastic. 
B) unit elastic. 
C) elastic. 
D) irrelevant. 
E) undefined. 
A) inelastic. 
B) unit elastic. 
C) elastic. 
D) irrelevant. 
E) undefined.

Question 19

If beef and pork are substitutes for consumers, the cross elasticity of demand between the two products must be

Accepted Answer

A) negative. 
B) positive. 
C) indeterminate. 
D) elastic. 
E) greater than 1. 
A) negative. 
B) positive. 
C) indeterminate. 
D) elastic. 
E) greater than 1.

Question 20

Suppose a 20 percent increase in the price of gasoline results in a 25 percent increase in the quantity supplied.This response means that gasoline has an

Accepted Answer

A) elastic supply. 
B) inelastic supply. 
C) unit elastic supply. 
D) inelastic demand. 
E) elastic demand. 
A) elastic supply. 
B) inelastic supply. 
C) unit elastic supply. 
D) inelastic demand. 
E) elastic demand.

-In the figure above, using the midpoint method, the price elasticity of demand when the price falls from $6 to $5 is equal to

The longer the time that has elapsed since the price of a good changed, the

When the percentage change in the quantity supplied is less than the percentage change in price, the supply is

We calculate the price elasticity of demand as the

Suppose the price of a movie falls from $9 to $7.Using the midpoint method, what is the percentage change in price?

If the supply of a good decreases and it causes total revenue to increase, this shows that the good has an

Suppose the Oakland Raiders football team increases their season ticket prices and total revenue from ticket sales falls, but not to zero.This fact means that the demand for Raiders tickets is

If a good has only a few, poor substitutes, is its demand elastic or inelastic?

-In the figure above, what happens to total revenue as we move from point A to point B?

When hamburger is $3 per pound, Ms.Rush buys 6 pounds.When hamburger is $2 per pound, Ms.Rush buys 10 pounds.Describe Ms.Rush's demand between these two prices.

-In the figure above, what is the total revenue at point A?

-The demand curve shown in the figure above is ________ over the price range from $95 to $105 per trip.

Sergio's rentals of Blu-ray movies increase by 10 percent when her income increases by 30 percent.Based on this information, we know that for Sergio Blu-ray movies

Demand is elastic if

Suppose the current price of barley is $7 per bushel and at that price 100,000 bushels are grown by a Colorado farmer.If the price of barley rises to $8 and quantity supplied increases to 130,000 bushels, then using the midpoint method, the price elasticity of supply for barley equals

When the percentage change in the quantity demanded exceeds the percentage change in price, then demand is

If the price of a a good increases by 10 percent and the quantity supplied increases by 5 percent, then the elasticity of supply is

When the percentage change in the quantity demanded equals the percentage change in price, then demand is

If beef and pork are substitutes for consumers, the cross elasticity of demand between the two products must be

Suppose a 20 percent increase in the price of gasoline results in a 25 percent increase in the quantity supplied.This response means that gasoline has an

Getting Started

The Usand Global Economies

The Economic Problem

Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Taxes

Global Markets in Action

Externalities

Public Goods and Common Resources

Markets With Private Information

Consumer Choice and Demand

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Markets for Factors of Production

Economic Inequality

Filters

Exam 5: Elasticities of Demand and Supply

-In the figure above, using the midpoint method, the price elasticity of demand when the price falls from $6 to $5 is equal to

The longer the time that has elapsed since the price of a good changed, the

When the percentage change in the quantity supplied is less than the percentage change in price, the supply is

We calculate the price elasticity of demand as the

Suppose the price of a movie falls from $9 to $7.Using the midpoint method, what is the percentage change in price?

If the supply of a good decreases and it causes total revenue to increase, this shows that the good has an

Suppose the Oakland Raiders football team increases their season ticket prices and total revenue from ticket sales falls, but not to zero.This fact means that the demand for Raiders tickets is

If a good has only a few, poor substitutes, is its demand elastic or inelastic?

-In the figure above, what happens to total revenue as we move from point A to point B?

When hamburger is $3 per pound, Ms.Rush buys 6 pounds.When hamburger is $2 per pound, Ms.Rush buys 10 pounds.Describe Ms.Rush's demand between these two prices.

-In the figure above, what is the total revenue at point A?

-The demand curve shown in the figure above is ________ over the price range from $95 to $105 per trip.

Sergio's rentals of Blu-ray movies increase by 10 percent when her income increases by 30 percent.Based on this information, we know that for Sergio Blu-ray movies

Demand is elastic if

Suppose the current price of barley is $7 per bushel and at that price 100,000 bushels are grown by a Colorado farmer.If the price of barley rises to $8 and quantity supplied increases to 130,000 bushels, then using the midpoint method, the price elasticity of supply for barley equals

When the percentage change in the quantity demanded exceeds the percentage change in price, then demand is

If the price of a a good increases by 10 percent and the quantity supplied increases by 5 percent, then the elasticity of supply is

When the percentage change in the quantity demanded equals the percentage change in price, then demand is

If beef and pork are substitutes for consumers, the cross elasticity of demand between the two products must be

Suppose a 20 percent increase in the price of gasoline results in a 25 percent increase in the quantity supplied.This response means that gasoline has an

Getting Started

The Usand Global Economies

The Economic Problem

Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Taxes

Global Markets in Action

Externalities

Public Goods and Common Resources

Markets With Private Information

Consumer Choice and Demand

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Markets for Factors of Production

Economic Inequality

Filters