Question 1

When the percentage change in the quantity supplied is twice the percentage change in price, then supply is

Accepted Answer

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

Question 2

Suppose the demand for peaches sold from one roadside stand in Georgia is perfectly elastic.As a result, a 7 percent increase in the price charged by the owner of this stand leads to

Accepted Answer

A) zero peaches sold by this stand. 
B) no change in the quantity demanded at this stand. 
C) a 7 percent decrease in the quantity demanded at this stand. 
D) a 7 percent decrease in demand at this stand. 
E) a virtually infinite increase in the quantity demanded at this stand. 
A) zero peaches sold by this stand. 
B) no change in the quantity demanded at this stand. 
C) a 7 percent decrease in the quantity demanded at this stand. 
D) a 7 percent decrease in demand at this stand. 
E) a virtually infinite increase in the quantity demanded at this stand.

Question 3

-In the figure above, the demand is unit elastic

Accepted Answer

A) at the point where the price is $3.00 per cup. 
B) at the point where the price is $2.00 per cup. 
C) at the point where the price is $4.00 per cup. 
D) at the point where the price is $2.50 per cup. 
E) at all points along the demand curve. 
A) at the point where the price is $3.00 per cup. 
B) at the point where the price is $2.00 per cup. 
C) at the point where the price is $4.00 per cup. 
D) at the point where the price is $2.50 per cup. 
E) at all points along the demand curve.

Question 4

Taco Bell firm raises the price of its tacos.The price elasticity of demand for Taco Bell tacos equals 5.0.What happens to the Taco Bell's total revenue?

Accepted Answer

A) nothing 
B) It increases. 
C) It decreases. 
D) It becomes negative. 
E) It might change, but more information is needed to determine if it increases, decreases, or does not change. 
A) nothing 
B) It increases. 
C) It decreases. 
D) It becomes negative. 
E) It might change, but more information is needed to determine if it increases, decreases, or does not change.

Question 5

"The price elasticity of demand is a measure of how sensitive demanders are to changes in the price of a product." Is this statement true or false?

Accepted Answer

The assertion is true.All elasticities m

Question 6

If a product is a normal good, then its income elasticity of demand is

Accepted Answer

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

Question 7

The price elasticity of demand measures which of the following?

Accepted Answer

A) the slope of the demand curve 
B) the rate at which demand changes when price changes 
C) how responsive the quantity demanded is to changes in price 
D) the percentage-slope of the demand curve 
E) None of these correctly defines what price elasticity of demand measures. 
A) the slope of the demand curve 
B) the rate at which demand changes when price changes 
C) how responsive the quantity demanded is to changes in price 
D) the percentage-slope of the demand curve 
E) None of these correctly defines what price elasticity of demand measures.

Question 8

-The table above gives the demand schedule for a good.Using the midpoint method, find the price elasticity of demand between points A and B, between B and C, between C and D, and between D and E.

Accepted Answer

The price elasticity of demand between p

Question 9

If the price of corn increases by 20 percent and the quantity supplied of corn increases by 30 percent, then supply is

Accepted Answer

A) elastic and the elasticity of supply equals 1.5. 
B) inelastic and the elasticity of supply equals 1.5. 
C) elastic and the elasticity of supply equals 0.66. 
D) inelastic and the elasticity of supply equals 0.66. 
E) either elastic or inelastic but more information about the elasticity of demand is needed to determine which. 
A) elastic and the elasticity of supply equals 1.5. 
B) inelastic and the elasticity of supply equals 1.5. 
C) elastic and the elasticity of supply equals 0.66. 
D) inelastic and the elasticity of supply equals 0.66. 
E) either elastic or inelastic but more information about the elasticity of demand is needed to determine which.

Question 10

If a Pizza Hut raises the price of a slice of pizza from $3.00 to $3.25, the quantity demanded decreases from 1,500 slices per week to 1,300 slices per week.The demand for slices of pizza is ________ and the total revenue received by this Pizza Hut ________.

Accepted Answer

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

Question 11

When the price of a burrito increases from $2 to $4, the quantity demanded decreases from 50 to 40.Using the midpoint method, the price elasticity of demand equals

Accepted Answer

A) 1/3. 
B) 3. 
C) 2. 
D) 1. 
E) 1/2. 
A) 1/3. 
B) 3. 
C) 2. 
D) 1. 
E) 1/2.

Question 12

When income increases from $20,000 to $30,000 the quantity of inter-city bus trips taken per year decreases from 10 to 8.Hence

Accepted Answer

A) inter-city bus trips are a normal good. 
B) the income elasticity of demand for inter-city bus trips is -1.8. 
C) the income elasticity of demand for inter-city bus trips is -0.56. 
D) Both answers A and B are correct. 
E) Both answers A and C are correct. 
A) inter-city bus trips are a normal good. 
B) the income elasticity of demand for inter-city bus trips is -1.8. 
C) the income elasticity of demand for inter-city bus trips is -0.56. 
D) Both answers A and B are correct. 
E) Both answers A and C are correct.

Question 13

If the price elasticity of demand for opera tickets in Orlando is 1.00, then the demand for opera tickets in Orlando is

Accepted Answer

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

Question 14

What does a horizontal demand curve indicate about the price elasticity of demand?

Accepted Answer

If the demand curve for a good

Question 15

-In the figure above, using the midpoint method, the price elasticity of demand when the price falls from $7 to $6 is equal to

Accepted Answer

A) 2.50. 
B) 1.63. 
C) 0.40. 
D) 0.62. 
E) 1.00. 
A) 2.50. 
B) 1.63. 
C) 0.40. 
D) 0.62. 
E) 1.00.

When the percentage change in the quantity supplied is twice the percentage change in price, then supply is

Suppose the demand for peaches sold from one roadside stand in Georgia is perfectly elastic.As a result, a 7 percent increase in the price charged by the owner of this stand leads to

-In the figure above, the demand is unit elastic

Taco Bell firm raises the price of its tacos.The price elasticity of demand for Taco Bell tacos equals 5.0.What happens to the Taco Bell's total revenue?

"The price elasticity of demand is a measure of how sensitive demanders are to changes in the price of a product." Is this statement true or false?

If a product is a normal good, then its income elasticity of demand is

The price elasticity of demand measures which of the following?

-The table above gives the demand schedule for a good.Using the midpoint method, find the price elasticity of demand between points A and B, between B and C, between C and D, and between D and E.

If the price of corn increases by 20 percent and the quantity supplied of corn increases by 30 percent, then supply is

If a Pizza Hut raises the price of a slice of pizza from $3.00 to $3.25, the quantity demanded decreases from 1,500 slices per week to 1,300 slices per week.The demand for slices of pizza is and the total revenue received by this Pizza Hut .

When the price of a burrito increases from $2 to $4, the quantity demanded decreases from 50 to 40.Using the midpoint method, the price elasticity of demand equals

When income increases from $20,000 to $30,000 the quantity of inter-city bus trips taken per year decreases from 10 to 8.Hence

If the price elasticity of demand for opera tickets in Orlando is 1.00, then the demand for opera tickets in Orlando is

What does a horizontal demand curve indicate about the price elasticity of demand?

-In the figure above, using the midpoint method, the price elasticity of demand when the price falls from $7 to $6 is equal to

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

When the percentage change in the quantity supplied is twice the percentage change in price, then supply is

Suppose the demand for peaches sold from one roadside stand in Georgia is perfectly elastic.As a result, a 7 percent increase in the price charged by the owner of this stand leads to

-In the figure above, the demand is unit elastic

Taco Bell firm raises the price of its tacos.The price elasticity of demand for Taco Bell tacos equals 5.0.What happens to the Taco Bell's total revenue?

"The price elasticity of demand is a measure of how sensitive demanders are to changes in the price of a product." Is this statement true or false?

If a product is a normal good, then its income elasticity of demand is

The price elasticity of demand measures which of the following?

-The table above gives the demand schedule for a good.Using the midpoint method, find the price elasticity of demand between points A and B, between B and C, between C and D, and between D and E.

If the price of corn increases by 20 percent and the quantity supplied of corn increases by 30 percent, then supply is

If a Pizza Hut raises the price of a slice of pizza from $3.00 to $3.25, the quantity demanded decreases from 1,500 slices per week to 1,300 slices per week.The demand for slices of pizza is ________ and the total revenue received by this Pizza Hut ________.

When the price of a burrito increases from $2 to $4, the quantity demanded decreases from 50 to 40.Using the midpoint method, the price elasticity of demand equals

When income increases from $20,000 to $30,000 the quantity of inter-city bus trips taken per year decreases from 10 to 8.Hence

If the price elasticity of demand for opera tickets in Orlando is 1.00, then the demand for opera tickets in Orlando is

What does a horizontal demand curve indicate about the price elasticity of demand?

-In the figure above, using the midpoint method, the price elasticity of demand when the price falls from $7 to $6 is equal to

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 Pizza Hut raises the price of a slice of pizza from $3.00 to $3.25, the quantity demanded decreases from 1,500 slices per week to 1,300 slices per week.The demand for slices of pizza is and the total revenue received by this Pizza Hut .