Question 1

The price of furnace filters increased by 5 percent and the quantity demanded did not change.The price elasticity of demand for furnace filters is

Accepted Answer

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

Question 2

For a good such as food, the income elasticity is likely

Accepted Answer

A) negative. 
B) equal to zero. 
C) positive and less than one. 
D) positive and greater than one. 
E) undefined because people always buy the same amount of food. 
A) negative. 
B) equal to zero. 
C) positive and less than one. 
D) positive and greater than one. 
E) undefined because people always buy the same amount of food.

Question 3

If the price elasticity of supply for a good is 0.75, then

Accepted Answer

A) the percentage change in the quantity supplied is less than the percentage change in price. 
B) the supply is elastic. 
C) an increase in the price boosts the quantity supplied by a larger percentage. 
D) the supply is inelastic so the demand must also be inelastic. 
E) None of the above answers is correct. 
A) the percentage change in the quantity supplied is less than the percentage change in price. 
B) the supply is elastic. 
C) an increase in the price boosts the quantity supplied by a larger percentage. 
D) the supply is inelastic so the demand must also be inelastic. 
E) None of the above answers is correct.

Question 4

If the quantity supplied increases by 8 percent when the price rises by 2 percent, the price elasticity of supply is ________ .

Accepted Answer

A) 10.0 
B) 6.0 
C) 0.25 
D) 16.0 
E) 4.0 
A) 10.0 
B) 6.0 
C) 0.25 
D) 16.0 
E) 4.0

Question 5

-The data in the table above give two points on the demand curve for pizza.Using the midpoint method, when the price of a pizza falls from $10 to $9, what is the percentage change in price?

Accepted Answer

A) 8.2 percent 
B) 15.5 percent 
C) 10.5 percent 
D) 5.0 percent 
E) 1.0 percent 
A) 8.2 percent 
B) 15.5 percent 
C) 10.5 percent 
D) 5.0 percent 
E) 1.0 percent

Question 6

The price of a bag of pretzels rises from $2 to $3 and the quantity demanded decreases from 100 to 60.What is the price elasticity of demand?

Accepted Answer

A) 1.0 
B) 1.25 
C) 40.0 
D) 20.0 
E) 0.80 
A) 1.0 
B) 1.25 
C) 40.0 
D) 20.0 
E) 0.80

Question 7

If a 2 percent change in price leads to a ________ percent change in the quantity demanded, then demand is ________.

Accepted Answer

A) 2; elastic 
B) 1; unit elastic 
C) 3; inelastic 
D) 1; inelastic 
E) 0; perfectly elastic 
A) 2; elastic 
B) 1; unit elastic 
C) 3; inelastic 
D) 1; inelastic 
E) 0; perfectly elastic

Question 8

-In the figure above, at the point where the price is $4 per cup the price elasticity of demand is

Accepted Answer

A) 2. 
B) 0.5. 
C) 1. 
D) 1.5. 
E) 0. 
A) 2. 
B) 0.5. 
C) 1. 
D) 1.5. 
E) 0.

Question 9

Because the price elasticity of supply for jumbo jets is 0.35, the supply of jumbo jets is

Accepted Answer

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

Question 10

During last year the price of regular unleaded gasoline in Oakland, California increased 11.0 percent.If the price elasticity of demand for gasoline was 0.13, the price hike means that the quantity demanded decreased by

Accepted Answer

A) 1.43 percent. 
B) 8.46 percent. 
C) 0.16 percent. 
D)  4.31 percent. 
E) 6.46 percent. 
A) 1.43 percent. 
B) 8.46 percent. 
C) 0.16 percent. 
D)  4.31 percent. 
E) 6.46 percent.

Question 11

Many manufactured goods have an ________ supply if production plans have only a short period to change and as time passes and all production adjustments are made, the supply of the good ________ from the initial response.

Accepted Answer

A) inelastic; increases 
B) elastic; decreases 
C) elastic; increases 
D) inelastic; decreases 
E) inelastic; does not change 
A) inelastic; increases 
B) elastic; decreases 
C) elastic; increases 
D) inelastic; decreases 
E) inelastic; does not change

Question 12

A 10 percent increase in price leads to a 20 percent decrease in the quantity demanded.The price elasticity of demand is equal to

Accepted Answer

A) 0.5. 
B) 1.0. 
C) 2.0. 
D) 20.0. 
E) 10.0. 
A) 0.5. 
B) 1.0. 
C) 2.0. 
D) 20.0. 
E) 10.0.

Question 13

If the percentage change in the price of a good exceeds the percentage change in the quantity supplied, then the supply is

Accepted Answer

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

Question 14

Demand is price inelastic if ________ percentage change in the price leads to a ________ percentage change in the quantity demanded.

Accepted Answer

A) a small; large 
B) a large; small 
C) any; large 
D) Both answers A and B are correct. 
E) None of the above answers is correct. 
A) a small; large 
B) a large; small 
C) any; large 
D) Both answers A and B are correct. 
E) None of the above answers is correct.

Question 15

Suppose Starbucks currently charges $3.25 per cup for its latte.If Starbucks lowers the price to $3.00 per cup, based on the demand curve in the figure above, its total revenue will ________ because the demand for Starbucks latte is ________ over this price range.

Accepted Answer

A) increase; elastic 
B) decrease; elastic 
C) increase; inelastic 
D) increase; unit elastic 
E) not change; unit elastic 
A) increase; elastic 
B) decrease; elastic 
C) increase; inelastic 
D) increase; unit elastic 
E) not change; unit elastic

Question 16

One reason why the price elasticity of supply for DVD players is greater than one is that

Accepted Answer

A) the cost of producing DVD players is small. 
B) the storage of DVD players is not possible. 
C) DVD players can be easily stored. 
D) the demand for DVD players is fairly large. 
E) DVD players require relatively advanced technology for their production. 
A) the cost of producing DVD players is small. 
B) the storage of DVD players is not possible. 
C) DVD players can be easily stored. 
D) the demand for DVD players is fairly large. 
E) DVD players require relatively advanced technology for their production.

Question 17

Goods are ________ when the income elasticity of demand is less than zero.

Accepted Answer

A) substitutes 
B) complements 
C) inferior 
D) elastic 
E) normal 
A) substitutes 
B) complements 
C) inferior 
D) elastic 
E) normal

Question 18

-The table above gives the demand schedule for a good.What is the total revenue at point A? At point B? At point C? At point D? At point E?

Accepted Answer

The total revenue is the price multiplie

Question 19

Suppose the quantity supplied of computers increases from 2 million to 4 million units as the price of a computer increases from $600 to $700.What does the price elasticity of supply equal?

Accepted Answer

The price elasticity of supply = (percen

Question 20

When the percentage change in the quantity supplied equals the percentage change in price, the supply is

Accepted Answer

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

The price of furnace filters increased by 5 percent and the quantity demanded did not change.The price elasticity of demand for furnace filters is

For a good such as food, the income elasticity is likely

If the price elasticity of supply for a good is 0.75, then

If the quantity supplied increases by 8 percent when the price rises by 2 percent, the price elasticity of supply is ________ .

-The data in the table above give two points on the demand curve for pizza.Using the midpoint method, when the price of a pizza falls from $10 to $9, what is the percentage change in price?

The price of a bag of pretzels rises from $2 to $3 and the quantity demanded decreases from 100 to 60.What is the price elasticity of demand?

If a 2 percent change in price leads to a percent change in the quantity demanded, then demand is .

-In the figure above, at the point where the price is $4 per cup the price elasticity of demand is

Because the price elasticity of supply for jumbo jets is 0.35, the supply of jumbo jets is

During last year the price of regular unleaded gasoline in Oakland, California increased 11.0 percent.If the price elasticity of demand for gasoline was 0.13, the price hike means that the quantity demanded decreased by

Many manufactured goods have an supply if production plans have only a short period to change and as time passes and all production adjustments are made, the supply of the good from the initial response.

A 10 percent increase in price leads to a 20 percent decrease in the quantity demanded.The price elasticity of demand is equal to

If the percentage change in the price of a good exceeds the percentage change in the quantity supplied, then the supply is

Demand is price inelastic if percentage change in the price leads to a percentage change in the quantity demanded.

Suppose Starbucks currently charges $3.25 per cup for its latte.If Starbucks lowers the price to $3.00 per cup, based on the demand curve in the figure above, its total revenue will because the demand for Starbucks latte is over this price range.

One reason why the price elasticity of supply for DVD players is greater than one is that

Goods are ________ when the income elasticity of demand is less than zero.

-The table above gives the demand schedule for a good.What is the total revenue at point A? At point B? At point C? At point D? At point E?

Suppose the quantity supplied of computers increases from 2 million to 4 million units as the price of a computer increases from $600 to $700.What does the price elasticity of supply equal?

When the percentage change in the quantity supplied equals the percentage change in price, the supply is

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

The price of furnace filters increased by 5 percent and the quantity demanded did not change.The price elasticity of demand for furnace filters is

For a good such as food, the income elasticity is likely

If the price elasticity of supply for a good is 0.75, then

If the quantity supplied increases by 8 percent when the price rises by 2 percent, the price elasticity of supply is ________ .

-The data in the table above give two points on the demand curve for pizza.Using the midpoint method, when the price of a pizza falls from $10 to $9, what is the percentage change in price?

The price of a bag of pretzels rises from $2 to $3 and the quantity demanded decreases from 100 to 60.What is the price elasticity of demand?

If a 2 percent change in price leads to a ________ percent change in the quantity demanded, then demand is ________.

-In the figure above, at the point where the price is $4 per cup the price elasticity of demand is

Because the price elasticity of supply for jumbo jets is 0.35, the supply of jumbo jets is

During last year the price of regular unleaded gasoline in Oakland, California increased 11.0 percent.If the price elasticity of demand for gasoline was 0.13, the price hike means that the quantity demanded decreased by

Many manufactured goods have an ________ supply if production plans have only a short period to change and as time passes and all production adjustments are made, the supply of the good ________ from the initial response.

A 10 percent increase in price leads to a 20 percent decrease in the quantity demanded.The price elasticity of demand is equal to

If the percentage change in the price of a good exceeds the percentage change in the quantity supplied, then the supply is

Demand is price inelastic if ________ percentage change in the price leads to a ________ percentage change in the quantity demanded.

Suppose Starbucks currently charges $3.25 per cup for its latte.If Starbucks lowers the price to $3.00 per cup, based on the demand curve in the figure above, its total revenue will ________ because the demand for Starbucks latte is ________ over this price range.

One reason why the price elasticity of supply for DVD players is greater than one is that

Goods are ________ when the income elasticity of demand is less than zero.

-The table above gives the demand schedule for a good.What is the total revenue at point A? At point B? At point C? At point D? At point E?

Suppose the quantity supplied of computers increases from 2 million to 4 million units as the price of a computer increases from $600 to $700.What does the price elasticity of supply equal?

When the percentage change in the quantity supplied equals the percentage change in price, the supply is

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

If a 2 percent change in price leads to a percent change in the quantity demanded, then demand is .

Many manufactured goods have an supply if production plans have only a short period to change and as time passes and all production adjustments are made, the supply of the good from the initial response.

Demand is price inelastic if percentage change in the price leads to a percentage change in the quantity demanded.

Suppose Starbucks currently charges $3.25 per cup for its latte.If Starbucks lowers the price to $3.00 per cup, based on the demand curve in the figure above, its total revenue will because the demand for Starbucks latte is over this price range.