Question 1

The demand for items on which we spend a large percentage of our income

Accepted Answer

A) will be perfectly inelastic. 
B) will tend to be elastic. 
C) will tend to be inelastic. 
D) will be perfectly elastic. 
A) will be perfectly inelastic. 
B) will tend to be elastic. 
C) will tend to be inelastic. 
D) will be perfectly elastic. B

Question 2

Use the following figure to answer the question :  
-Which statement is true about the demand curve in the graph?

Accepted Answer

A) Demand is perfectly elastic. 
B) Demand is perfectly inelastic. 
C) Demand is more elastic at point Q than at point T. 
D) Demand is more elastic at point T than at point Q. 
A) Demand is perfectly elastic. 
B) Demand is perfectly inelastic. 
C) Demand is more elastic at point Q than at point T. 
D) Demand is more elastic at point T than at point Q. C

Question 3

Which statement is true?

Accepted Answer

A) In the market period, industry supply is either perfectly elastic or very elastic. 
B) In the short run, an increase in demand can lead to an increase in a firm's output. 
C) In the market period, an increase in demand will lead to an increase in the firm's output. 
D) Supply is less elastic in the long run than in the short run. 
A) In the market period, industry supply is either perfectly elastic or very elastic. 
B) In the short run, an increase in demand can lead to an increase in a firm's output. 
C) In the market period, an increase in demand will lead to an increase in the firm's output. 
D) Supply is less elastic in the long run than in the short run. B

Question 4

Which statement is true?

Accepted Answer

A) A vertical demand curve has zero elasticity. 
B) A horizontal demand curve has zero elasticity. 
C) Both vertical and horizontal demand curves have zero elasticity. 
D) Neither vertical nor horizontal demand curves have zero elasticity. 
A) A vertical demand curve has zero elasticity. 
B) A horizontal demand curve has zero elasticity. 
C) Both vertical and horizontal demand curves have zero elasticity. 
D) Neither vertical nor horizontal demand curves have zero elasticity.

Question 5

The imposition of a tax on a good or service would be represented as

Accepted Answer

A) an increase in demand. 
B) an increase in supply. 
C) a decrease in demand. 
D) a decrease in supply. 
E) a decrease in demand and in supply. 
A) an increase in demand. 
B) an increase in supply. 
C) a decrease in demand. 
D) a decrease in supply. 
E) a decrease in demand and in supply.

Question 6

Use the following Figure to answer the question :  
-Demand is elastic

Accepted Answer

A) when the percentage change in quantity is greater than the percentage change in price. 
B) when price increases lower total revenue. 
C) when price decreases raise total revenue. 
D) All of the choices are correct. 
A) when the percentage change in quantity is greater than the percentage change in price. 
B) when price increases lower total revenue. 
C) when price decreases raise total revenue. 
D) All of the choices are correct.

Question 7

A perfectly elastic demand curve is

Accepted Answer

A) horizontal. 
B) vertical. 
C) upward sloping. 
D) downward sloping. 
A) horizontal. 
B) vertical. 
C) upward sloping. 
D) downward sloping.

Question 8

Which of these elasticities is the least elastic?

Accepted Answer

A) 1 
B) 10 
C) 100 
D) 0.9 
E) 0.1 
A) 1 
B) 10 
C) 100 
D) 0.9 
E) 0.1

Question 9

Draw a perfectly inelastic demand curve and state its elasticity.

Accepted Answer

The answer of Draw a perfectly inelastic demand curve and...

Question 10

If the elasticity of demand for tongue depressors is 0.5,

Accepted Answer

A) a 10% rise in the price of tongue depressors will lower quantity demanded by 50%. 
B) an increase in the price of tongue depressors will lower total revenue for sellers. 
C) a 10% increase in the price of tongue depressors will not change its total revenue. 
D) a 10% fall in the price of tongue depressors will raise quantity demanded by 5%. 
A) a 10% rise in the price of tongue depressors will lower quantity demanded by 50%. 
B) an increase in the price of tongue depressors will lower total revenue for sellers. 
C) a 10% increase in the price of tongue depressors will not change its total revenue. 
D) a 10% fall in the price of tongue depressors will raise quantity demanded by 5%.

Question 11

An elasticity of demand that would be considered very inelastic would be

Accepted Answer

A) 0.1. 
B) 0.9. 
C) 1.0. 
D) 1.1. 
A) 0.1. 
B) 0.9. 
C) 1.0. 
D) 1.1.

Question 12

An elasticity of demand that is slightly elastic would be (write number) ____.

Accepted Answer

The answer of An elasticity of demand that is slightly...

Question 13

-How much is the tax?

Accepted Answer

A) $8 
B) $6 
C) $4 
D) $2 
A) $8 
B) $6 
C) $4 
D) $2

Question 14

Use the following figure to answer the question :  
-The lowest possible elasticity shown here is

Accepted Answer

A) 10. 
B) 1.0. 
C) 0.1. 
D) 0.01. 
E) 0.001. 
A) 10. 
B) 1.0. 
C) 0.1. 
D) 0.01. 
E) 0.001.

Question 15

When demand is inelastic

Accepted Answer

A) the percentage change in quantity demanded is less than the percentage change in price. 
B) the buyer is insensitive to price changes. 
C) the elasticity coefficient is greater than zero, but less than one. 
D) all of these statement statements are true. 
A) the percentage change in quantity demanded is less than the percentage change in price. 
B) the buyer is insensitive to price changes. 
C) the elasticity coefficient is greater than zero, but less than one. 
D) all of these statement statements are true.

Question 16

When demand is elastic, if we were to raise price, total revenue would _______; when demand is inelastic, if we were to raise price, total revenue would ______.

Accepted Answer

The answer of When demand is elastic, if we were...

Question 17

If consumers are insensitive to price changes for a particular good, their demand for the good is said to be _________.

Accepted Answer

The answer of If consumers are insensitive to price changes...

Question 18

If demand is more elastic than supply, the buyer will pay ________ of a tax.

Accepted Answer

The answer of If demand is more elastic than supply,...

Question 19

The elasticity of demand for fish is estimated to be 3. If this estimate is accurate, then a 3% rise in price will

Accepted Answer

A) increase quantity demanded by 1%. 
B) increase quantity demanded by 9%. 
C) decrease quantity demanded by 1%. 
D) decrease quantity demanded by 3%. 
E) decrease quantity demanded by 9%. 
A) increase quantity demanded by 1%. 
B) increase quantity demanded by 9%. 
C) decrease quantity demanded by 1%. 
D) decrease quantity demanded by 3%. 
E) decrease quantity demanded by 9%.

Question 20

Draw a supply curve, S1. Then draw a less elastic supply curve, S2.

Accepted Answer

The answer of Draw a supply curve, S1. Then draw...

The demand for items on which we spend a large percentage of our income

Use the following figure to answer the question : -Which statement is true about the demand curve in the graph?

Which statement is true?

Which statement is true?

The imposition of a tax on a good or service would be represented as

Use the following Figure to answer the question : -Demand is elastic

A perfectly elastic demand curve is

Which of these elasticities is the least elastic?

Draw a perfectly inelastic demand curve and state its elasticity.

If the elasticity of demand for tongue depressors is 0.5,

An elasticity of demand that would be considered very inelastic would be

An elasticity of demand that is slightly elastic would be (write number) ____.

-How much is the tax?

Use the following figure to answer the question : -The lowest possible elasticity shown here is

When demand is inelastic

When demand is elastic, if we were to raise price, total revenue would _; when demand is inelastic, if we were to raise price, total revenue would .

If consumers are insensitive to price changes for a particular good, their demand for the good is said to be _________.

If demand is more elastic than supply, the buyer will pay ________ of a tax.

The elasticity of demand for fish is estimated to be 3. If this estimate is accurate, then a 3% rise in price will

Draw a supply curve, S1. Then draw a less elastic supply curve, S2.

A Brief Economic History of the United States

Resource Utilization

The Mixed Economy

Supply and Demand

Demand, Supply, and Equilibrium

Theory of Consumer Behavior

Cost

Profit, Loss, and Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Corporate Mergers and Antitrust

Demand in the Factor Market

Labor Unions

Labor Markets and Wage Rates

Rent, Interest, and Profit

Income Distribution and Poverty

International Trade

International Finance

Filters

Exam 6: The Price Elasticities of Demand and Supply

The demand for items on which we spend a large percentage of our income

Use the following figure to answer the question : -Which statement is true about the demand curve in the graph?

Which statement is true?

Which statement is true?

The imposition of a tax on a good or service would be represented as

Use the following Figure to answer the question : -Demand is elastic

A perfectly elastic demand curve is

Which of these elasticities is the least elastic?

Draw a perfectly inelastic demand curve and state its elasticity.

If the elasticity of demand for tongue depressors is 0.5,

An elasticity of demand that would be considered very inelastic would be

An elasticity of demand that is slightly elastic would be (write number) ____.

-How much is the tax?

Use the following figure to answer the question : -The lowest possible elasticity shown here is

When demand is inelastic

When demand is elastic, if we were to raise price, total revenue would _______; when demand is inelastic, if we were to raise price, total revenue would ______.

If consumers are insensitive to price changes for a particular good, their demand for the good is said to be _________.

If demand is more elastic than supply, the buyer will pay ________ of a tax.

The elasticity of demand for fish is estimated to be 3. If this estimate is accurate, then a 3% rise in price will

Draw a supply curve, S1. Then draw a less elastic supply curve, S2.

A Brief Economic History of the United States

Resource Utilization

The Mixed Economy

Supply and Demand

Demand, Supply, and Equilibrium

Theory of Consumer Behavior

Cost

Profit, Loss, and Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Corporate Mergers and Antitrust

Demand in the Factor Market

Labor Unions

Labor Markets and Wage Rates

Rent, Interest, and Profit

Income Distribution and Poverty

International Trade

International Finance

Filters

When demand is elastic, if we were to raise price, total revenue would _; when demand is inelastic, if we were to raise price, total revenue would .