Question 1

Among teenagers, the average demand for cigarettes is _________, ranging from 0.76 and 1.20.

Accepted Answer

A) highly inelastic 
B) approximately unit elastic 
C) highly elastic 
A) highly inelastic 
B) approximately unit elastic 
C) highly elastic

Question 2

The demand for Phillips gasoline is more _______ than the demand for gasoline in general because _________________________.

Accepted Answer

elastic; there are m

Question 3

Demand is inelastic when

Accepted Answer

A) the percentage change in quantity is greater than percentage change in price. 
B) the percentage change in price is greater than percentage change in quantity. 
C) the percentage change in price is equal to percentage change in quantity. 
A) the percentage change in quantity is greater than percentage change in price. 
B) the percentage change in price is greater than percentage change in quantity. 
C) the percentage change in price is equal to percentage change in quantity.

Question 4

Use the following figure to answer the question :  
-If demand is elastic and price is raised, total revenue will

Accepted Answer

A) rise. 
B) fall. 
C) stay the same. 
D) possibly rise or possibly fall. 
A) rise. 
B) fall. 
C) stay the same. 
D) possibly rise or possibly fall.

Question 5

Use the following figure to answer the question :  
-If the supply of steel is perfectly elastic, then an increase in the demand for steel will

Accepted Answer

A) increase the price of steel but have no effect on quantity supplied. 
B) increase the quantity of steel supplies but have no effect on the price. 
C) have no effect on the price or the quantity supplied. 
D) decrease total revenue taken in by steel producers. 
A) increase the price of steel but have no effect on quantity supplied. 
B) increase the quantity of steel supplies but have no effect on the price. 
C) have no effect on the price or the quantity supplied. 
D) decrease total revenue taken in by steel producers.

Question 6

If demand is elastic, then the elasticity of demand is

Accepted Answer

A) zero. 
B) between zero and 1. 
C) 1. 
D) more than 1. 
A) zero. 
B) between zero and 1. 
C) 1. 
D) more than 1.

Question 7

Along a downward-sloping straight-lined demand curve, the elasticity of demand is greater at ________ prices and more inelastic at _______ prices.

Accepted Answer

The answer of Along a downward-sloping straight-lined demand curve, the...

Question 8

A 15% decrease in the price of radios causes the quantity demanded to rise by 16%. The demand for radios is

Accepted Answer

A) very elastic. 
B) slightly elastic. 
C) unit elastic. 
D) slightly inelastic. 
E) very inelastic. 
A) very elastic. 
B) slightly elastic. 
C) unit elastic. 
D) slightly inelastic. 
E) very inelastic.

Question 9

When the inelasticities of demand and supply are equal, the tax burden will be borne

Accepted Answer

A) entirely by the seller. 
B) mostly by the seller. 
C) equally. 
D) mostly by the buyer. 
E) entirely by the buyer. 
A) entirely by the seller. 
B) mostly by the seller. 
C) equally. 
D) mostly by the buyer. 
E) entirely by the buyer.

Question 10

Use the following figure to answer the question :  
-If a 1% change in price leads to a 0.5% change in quantity demanded, then elasticity of demand is

Accepted Answer

A) 0.5. 
B) 1.0. 
C) 1.5. 
D) 5. 
A) 0.5. 
B) 1.0. 
C) 1.5. 
D) 5.

Question 11

An elasticity that would be considered only slightly 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

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

Accepted Answer

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

Question 13

Statement I: A tax increase on a product is usually borne by the buyer. Statement II: The supply curve is usually more elastic in the short run than the long run.

Accepted Answer

A) Statement I is true and statement II is false. 
B) Statement II is true and statement I is false. 
C) Both statements are true. 
D) Both statements are false. 
A) Statement I is true and statement II is false. 
B) Statement II is true and statement I is false. 
C) Both statements are true. 
D) Both statements are false.

Question 14

The demand for goods such as heart medicine, cigarettes, and gasoline tends to be

Accepted Answer

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

Question 15

When two goods are complementary goods, as the price of one of the goods goes _____, the quantity demanded of the other goes _____.

Accepted Answer

A) down; down 
B) up; up 
C) up; down 
D) down; neither up nor down 
A) down; down 
B) up; up 
C) up; down 
D) down; neither up nor down

Question 16

Use the following Figure to answer the question :  
-Which statement is true?

Accepted Answer

A) Over time the supply of a particular good or service tends to become more elastic. 
B) A perfectly elastic supply curve is a horizontal line. 
C) Supply is most elastic in the long run. 
D) All of the statements are true. 
A) Over time the supply of a particular good or service tends to become more elastic. 
B) A perfectly elastic supply curve is a horizontal line. 
C) Supply is most elastic in the long run. 
D) All of the statements are true.

Question 17

A.How much is the tax in the above graph?
B.How much of this tax is borne by the buyer and how much is borne by the seller?
C.As a result of the tax, by about how much does consumption fall?

Accepted Answer

(a) $2
(b) buyers pa

Question 18

Use the following Figure to answer the question :  
-How much is the tax?

Accepted Answer

A) $6.00 
B) $4.50 
C) $3.00 
D) $1.50 
E) $0 
A) $6.00 
B) $4.50 
C) $3.00 
D) $1.50 
E) $0

Question 19

If elasticity of demand is 5 and price is lowered from $100 to $98, by what percentage will quantity demanded rise?

Accepted Answer

The answer of If elasticity of demand is 5 and...

Question 20

The demand for hamburger buns is known to be elastic. This means that if the price of the product increases,

Accepted Answer

A) total revenue will rise. 
B) total revenue will stay the same. 
C) the quantity demanded will rise. 
D) total revenue will fall. 
A) total revenue will rise. 
B) total revenue will stay the same. 
C) the quantity demanded will rise. 
D) total revenue will fall.

Among teenagers, the average demand for cigarettes is _________, ranging from 0.76 and 1.20.

The demand for Phillips gasoline is more _ than the demand for gasoline in general because ___________________.

Demand is inelastic when

Use the following figure to answer the question : -If demand is elastic and price is raised, total revenue will

Use the following figure to answer the question : -If the supply of steel is perfectly elastic, then an increase in the demand for steel will

If demand is elastic, then the elasticity of demand is

Along a downward-sloping straight-lined demand curve, the elasticity of demand is greater at __ prices and more inelastic at _ prices.

A 15% decrease in the price of radios causes the quantity demanded to rise by 16%. The demand for radios is

When the inelasticities of demand and supply are equal, the tax burden will be borne

Use the following figure to answer the question : -If a 1% change in price leads to a 0.5% change in quantity demanded, then elasticity of demand is

An elasticity that would be considered only slightly inelastic would be

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

Statement I: A tax increase on a product is usually borne by the buyer. Statement II: The supply curve is usually more elastic in the short run than the long run.

The demand for goods such as heart medicine, cigarettes, and gasoline tends to be

When two goods are complementary goods, as the price of one of the goods goes _, the quantity demanded of the other goes _.

Use the following Figure to answer the question : -Which statement is true?

A.How much is the tax in the above graph? B.How much of this tax is borne by the buyer and how much is borne by the seller? C.As a result of the tax, by about how much does consumption fall?

Use the following Figure to answer the question : -How much is the tax?

If elasticity of demand is 5 and price is lowered from $100 to $98, by what percentage will quantity demanded rise?

The demand for hamburger buns is known to be elastic. This means that if the price of the product increases,

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

Among teenagers, the average demand for cigarettes is _________, ranging from 0.76 and 1.20.

The demand for Phillips gasoline is more _______ than the demand for gasoline in general because _________________________.

Demand is inelastic when

Use the following figure to answer the question : -If demand is elastic and price is raised, total revenue will

Use the following figure to answer the question : -If the supply of steel is perfectly elastic, then an increase in the demand for steel will

If demand is elastic, then the elasticity of demand is

Along a downward-sloping straight-lined demand curve, the elasticity of demand is greater at ________ prices and more inelastic at _______ prices.

A 15% decrease in the price of radios causes the quantity demanded to rise by 16%. The demand for radios is

When the inelasticities of demand and supply are equal, the tax burden will be borne

Use the following figure to answer the question : -If a 1% change in price leads to a 0.5% change in quantity demanded, then elasticity of demand is

An elasticity that would be considered only slightly inelastic would be

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

Statement I: A tax increase on a product is usually borne by the buyer. Statement II: The supply curve is usually more elastic in the short run than the long run.

The demand for goods such as heart medicine, cigarettes, and gasoline tends to be

When two goods are complementary goods, as the price of one of the goods goes _____, the quantity demanded of the other goes _____.

Use the following Figure to answer the question : -Which statement is true?

A.How much is the tax in the above graph? B.How much of this tax is borne by the buyer and how much is borne by the seller? C.As a result of the tax, by about how much does consumption fall?

Use the following Figure to answer the question : -How much is the tax?

If elasticity of demand is 5 and price is lowered from $100 to $98, by what percentage will quantity demanded rise?

The demand for hamburger buns is known to be elastic. This means that if the price of the product increases,

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

The demand for Phillips gasoline is more _ than the demand for gasoline in general because ___________________.

Along a downward-sloping straight-lined demand curve, the elasticity of demand is greater at __ prices and more inelastic at _ prices.

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

When two goods are complementary goods, as the price of one of the goods goes _, the quantity demanded of the other goes _.