Question 1

Which of the following statements is FALSE?

Accepted Answer

A)  The flexibility of producers helps determine the supply elasticity. 
B)  The time frame helps determine the supply elasticity. 
C)  The perfectly inelastic supply curve is vertical. 
D)  The perfectly elastic supply curve is horizontal. 
E)  Price elasticity of supply can never equal one. 
A)  The flexibility of producers helps determine the supply elasticity. 
B)  The time frame helps determine the supply elasticity. 
C)  The perfectly inelastic supply curve is vertical. 
D)  The perfectly elastic supply curve is horizontal. 
E)  Price elasticity of supply can never equal one.

Question 2

Masielle's Furniture produces high-quality wooden bedroom sets that take approximately four months to make,from start to finish.The price elasticity of supply for these bedroom sets in the short term is

Accepted Answer

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

Question 3

A local sandwich shop can quickly place an order for food with its local vendors if it uses up its existing resources quickly.This indicates that the price elasticity of supply is

Accepted Answer

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

Question 4

Celine runs a sporting goods store and knows that the price elasticity of demand for her sports clothing line is -1.5.She is planning to lower prices by 10 percent.The percentage change in quantity demanded will be

Accepted Answer

A)  15 percent. 
B)  0.15 percent. 
C)  6.66 percent. 
D)  0.06 percent. 
E)  8.50 percent. 
A)  15 percent. 
B)  0.15 percent. 
C)  6.66 percent. 
D)  0.06 percent. 
E)  8.50 percent.

Question 5

If the price elasticity of supply is 2.5,we know that it is

Accepted Answer

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

Question 6

If the cross-price elasticity of demand is -5,Good A and Good B are

Accepted Answer

A)  inferior goods. 
B)  complements. 
C)  substitutes. 
D)  normal goods. 
E)  luxury goods. 
A)  inferior goods. 
B)  complements. 
C)  substitutes. 
D)  normal goods. 
E)  luxury goods.

Question 7

At a price of $2,the quantity demanded for pens is 12.When the price increases to $3,the quantity demanded for pens is 10.The price elasticity of demand for pens is

Accepted Answer

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

Question 8

A vertical supply curve can be described as

Accepted Answer

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

Question 9

From the accompanying table,we can see that the demand curve for ice skates by hockey players will be ________ the demand curve for recreational skaters.

Accepted Answer

A)  steeper than 
B)  flatter than 
C)  unrelated to 
D)  the same as 
E)  the inverse of 
A)  steeper than 
B)  flatter than 
C)  unrelated to 
D)  the same as 
E)  the inverse of

Question 10

Salima is a devoted Coca-Cola consumer,whereas Antonia can drink either Coca-Cola or Pepsi products.Salima's demand for Coca-Cola will be relatively more ________,while Antonia's demand will be relatively more ________.

Accepted Answer

A)  elastic; inelastic 
B)  unrelated to price; elastic 
C)  perfectly elastic; elastic 
D)  inelastic; elastic 
E)  unitary elastic; inelastic 
A)  elastic; inelastic 
B)  unrelated to price; elastic 
C)  perfectly elastic; elastic 
D)  inelastic; elastic 
E)  unitary elastic; inelastic

Question 11

Sellers of bottled water find that whether the price falls or rises,the quantity bought by consumers remains unchanged every week.The price elasticity of demand for bottled water is

Accepted Answer

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

Question 12

Explain whether you agree or disagree with the following statement: "The slope of the demand curve also tells us about the elasticity of demand."

Accepted Answer

I disagree that the slope of the demand

Question 13

To keep the percentage change in quantity demanded equally proportional to the percentage change in price when the prices rise by 5 percent,a consumer would need to ________ quantity demanded by ________.

Accepted Answer

A)  increase; 5 percent 
B)  decrease; 5 percent 
C)  increase; 10 percent 
D)  decrease; 10 percent 
E)  increase; 2 percent 
A)  increase; 5 percent 
B)  decrease; 5 percent 
C)  increase; 10 percent 
D)  decrease; 10 percent 
E)  increase; 2 percent

Question 14

When the price of softballs is high,a ________ in price will raise total revenue.When the price is low,the seller should ________ the price to increase total revenue.

Accepted Answer

A)  decrease; raise 
B)  rise; raise 
C)  decrease; decrease 
D)  rise; decrease 
E)  decrease; not change 
A)  decrease; raise 
B)  rise; raise 
C)  decrease; decrease 
D)  rise; decrease 
E)  decrease; not change

Question 15

What good is most likely to have an income elasticity of demand equal to 8?

Accepted Answer

A)  a doctor's visit 
B)  toilet paper 
C)  used clothing 
D)  a five-star hotel 
E)  college coursework 
A)  a doctor's visit 
B)  toilet paper 
C)  used clothing 
D)  a five-star hotel 
E)  college coursework

Question 16

Which of the following statements are true about demand and the price elasticity of demand?

Accepted Answer

A)  When the demand curve has a negative slope,the price elasticity of demand is infinite. 
B)  When the demand curve has a negative slope,the price elasticity of demand is zero. 
C)  When the demand curve has a negative slope,the price elasticity of demand is positive. 
D)  When the demand curve has a negative slope,the price elasticity of demand is negative. 
E)  When the demand curve has a negative slope,the price elasticity of demand is positive 
A)  When the demand curve has a negative slope,the price elasticity of demand is infinite. 
B)  When the demand curve has a negative slope,the price elasticity of demand is zero. 
C)  When the demand curve has a negative slope,the price elasticity of demand is positive. 
D)  When the demand curve has a negative slope,the price elasticity of demand is negative. 
E)  When the demand curve has a negative slope,the price elasticity of demand is positive

Question 17

The price elasticity supply of doctors could be considered ________ because it takes a minimum of four to six years of training to be able to work as a physician.

Accepted Answer

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

Question 18

When Kelsey decreases her price of lipstick from $7 to $5,she finds that her sales increase from 6 to 7.She faces ________ demand for her product,and this price change will ________ her total revenue.

Accepted Answer

A)  elastic; raise 
B)  inelastic; lower 
C)  unitary elastic; not change 
D)  perfectly elastic; raise 
E)  perfectly inelastic; lower 
A)  elastic; raise 
B)  inelastic; lower 
C)  unitary elastic; not change 
D)  perfectly elastic; raise 
E)  perfectly inelastic; lower

Question 19

Nicolette raised her quantity demanded of hockey pucks from 100 to 150 when the price fell from $5 to $3 per puck.Using the midpoint method,her price elasticity of demand is

Accepted Answer

A)  0.80. 
B) -1.25. 
C)  -1.00. 
D)  0.40. 
E)  -0.80. 
A)  0.80. 
B) -1.25. 
C)  -1.00. 
D)  0.40. 
E)  -0.80.

Question 20

When incomes fall by 20 percent,quantity demanded of specialty baked goods falls by 50 percent.Specialty baked goods are

Accepted Answer

A)  inferior goods. 
B)  necessities. 
C)  substitutes for mass-produced bread. 
D)  luxuries. 
E)  complements to butter. 
A)  inferior goods. 
B)  necessities. 
C)  substitutes for mass-produced bread. 
D)  luxuries. 
E)  complements to butter.

Which of the following statements is FALSE?

Masielle's Furniture produces high-quality wooden bedroom sets that take approximately four months to make,from start to finish.The price elasticity of supply for these bedroom sets in the short term is

A local sandwich shop can quickly place an order for food with its local vendors if it uses up its existing resources quickly.This indicates that the price elasticity of supply is

Celine runs a sporting goods store and knows that the price elasticity of demand for her sports clothing line is -1.5.She is planning to lower prices by 10 percent.The percentage change in quantity demanded will be

If the price elasticity of supply is 2.5,we know that it is

If the cross-price elasticity of demand is -5,Good A and Good B are

At a price of $2,the quantity demanded for pens is 12.When the price increases to $3,the quantity demanded for pens is 10.The price elasticity of demand for pens is

A vertical supply curve can be described as

From the accompanying table,we can see that the demand curve for ice skates by hockey players will be ________ the demand curve for recreational skaters.

Salima is a devoted Coca-Cola consumer,whereas Antonia can drink either Coca-Cola or Pepsi products.Salima's demand for Coca-Cola will be relatively more ,while Antonia's demand will be relatively more .

Sellers of bottled water find that whether the price falls or rises,the quantity bought by consumers remains unchanged every week.The price elasticity of demand for bottled water is

Explain whether you agree or disagree with the following statement: "The slope of the demand curve also tells us about the elasticity of demand."

To keep the percentage change in quantity demanded equally proportional to the percentage change in price when the prices rise by 5 percent,a consumer would need to quantity demanded by .

When the price of softballs is high,a in price will raise total revenue.When the price is low,the seller should the price to increase total revenue.

What good is most likely to have an income elasticity of demand equal to 8?

Which of the following statements are true about demand and the price elasticity of demand?

The price elasticity supply of doctors could be considered ________ because it takes a minimum of four to six years of training to be able to work as a physician.

When Kelsey decreases her price of lipstick from $7 to $5,she finds that her sales increase from 6 to 7.She faces demand for her product,and this price change will her total revenue.

Nicolette raised her quantity demanded of hockey pucks from 100 to 150 when the price fell from $5 to $3 per puck.Using the midpoint method,her price elasticity of demand is

When incomes fall by 20 percent,quantity demanded of specialty baked goods falls by 50 percent.Specialty baked goods are

Five Foundations of Economics

Model Building and Gains From Trade

The Market at Work: Supply and Demand

Market Outcomes and Tax Incidence

Price Controls

Market Inefficiencies: Externalities and Public Goods

Business Costs and Production

Firms in a Competitive Market

Understanding Monopoly

Price Discrimination

Monopolistic Competition and Advertising

Oligopoly and Strategic Behavior

The Demand and Supply of Resources

Income,inequality,and Poverty

Consumer Choice

Behavioral Economics and Risk Taking

Health Insurance and Health Care

International Trade

Filters

Exam 4: Elasticity

Which of the following statements is FALSE?

Masielle's Furniture produces high-quality wooden bedroom sets that take approximately four months to make,from start to finish.The price elasticity of supply for these bedroom sets in the short term is

A local sandwich shop can quickly place an order for food with its local vendors if it uses up its existing resources quickly.This indicates that the price elasticity of supply is

Celine runs a sporting goods store and knows that the price elasticity of demand for her sports clothing line is -1.5.She is planning to lower prices by 10 percent.The percentage change in quantity demanded will be

If the price elasticity of supply is 2.5,we know that it is

If the cross-price elasticity of demand is -5,Good A and Good B are

At a price of $2,the quantity demanded for pens is 12.When the price increases to $3,the quantity demanded for pens is 10.The price elasticity of demand for pens is

A vertical supply curve can be described as

From the accompanying table,we can see that the demand curve for ice skates by hockey players will be ________ the demand curve for recreational skaters.

Salima is a devoted Coca-Cola consumer,whereas Antonia can drink either Coca-Cola or Pepsi products.Salima's demand for Coca-Cola will be relatively more ________,while Antonia's demand will be relatively more ________.

Sellers of bottled water find that whether the price falls or rises,the quantity bought by consumers remains unchanged every week.The price elasticity of demand for bottled water is

Explain whether you agree or disagree with the following statement: "The slope of the demand curve also tells us about the elasticity of demand."

To keep the percentage change in quantity demanded equally proportional to the percentage change in price when the prices rise by 5 percent,a consumer would need to ________ quantity demanded by ________.

When the price of softballs is high,a ________ in price will raise total revenue.When the price is low,the seller should ________ the price to increase total revenue.

What good is most likely to have an income elasticity of demand equal to 8?

Which of the following statements are true about demand and the price elasticity of demand?

The price elasticity supply of doctors could be considered ________ because it takes a minimum of four to six years of training to be able to work as a physician.

When Kelsey decreases her price of lipstick from $7 to $5,she finds that her sales increase from 6 to 7.She faces ________ demand for her product,and this price change will ________ her total revenue.

Nicolette raised her quantity demanded of hockey pucks from 100 to 150 when the price fell from $5 to $3 per puck.Using the midpoint method,her price elasticity of demand is

When incomes fall by 20 percent,quantity demanded of specialty baked goods falls by 50 percent.Specialty baked goods are

Five Foundations of Economics

Model Building and Gains From Trade

The Market at Work: Supply and Demand

Market Outcomes and Tax Incidence

Price Controls

Market Inefficiencies: Externalities and Public Goods

Business Costs and Production

Firms in a Competitive Market

Understanding Monopoly

Price Discrimination

Monopolistic Competition and Advertising

Oligopoly and Strategic Behavior

The Demand and Supply of Resources

Income,inequality,and Poverty

Consumer Choice

Behavioral Economics and Risk Taking

Health Insurance and Health Care

International Trade

Filters

Salima is a devoted Coca-Cola consumer,whereas Antonia can drink either Coca-Cola or Pepsi products.Salima's demand for Coca-Cola will be relatively more ,while Antonia's demand will be relatively more .

To keep the percentage change in quantity demanded equally proportional to the percentage change in price when the prices rise by 5 percent,a consumer would need to quantity demanded by .

When the price of softballs is high,a in price will raise total revenue.When the price is low,the seller should the price to increase total revenue.

When Kelsey decreases her price of lipstick from $7 to $5,she finds that her sales increase from 6 to 7.She faces demand for her product,and this price change will her total revenue.