Question 1

Use Figure 1 to answer questions 
Figure SEQ Figure  1: Elasticities of Demand 
-Which of the graphs illustrate a good whose percentage change in quantity demanded is greater than the percentage change in price?

Accepted Answer

A) Graph A 
B) Graph B 
C) Graph C 
D) Graph D

Question 2

You have exclusive rights for the sale of liquid beverages at the college games.Outside beverages are not allowed inside the stadium.Your friend, currently enrolled in an economics class, suggests that you decrease the price of your beverages to increase the quantity sold.Explain why, or why not, your friend is correct.

Accepted Answer

The answer of You have exclusive rights for the sale...

Question 3

Use Figure 1 to answer questions 
Figure SEQ Figure  1: Elasticities of Demand 
-Which of the graphs illustrate a good whose percentage change in quantity demanded is less than the percentage change in price?

Accepted Answer

A) Graph A 
B) Graph B 
C) Graph C 
D) Graph D

Question 4

The amount of money earned when a supplier sells a given quantity of a good is

Accepted Answer

A) Total revenue 
B) Marginal revenue 
C) Total product 
D) Marginal product

Question 5

If the elasticity of demand is greater than one, the price elasticity of demand is

Accepted Answer

A) Elastic 
B) Inelastic 
C) Unit elastic 
D) Unitary elastic

Question 6

Reference: Use Figure 2 to answer questions 
Figure SEQ Figure 2: Demand for Widgets 
-If the price of a widget increases from $10 to $20 the absolute value of the price elasticity of demand is

Accepted Answer

A) .25 
B) .67 
C) 1.5 
D) 4

Question 7

The measurement of responsiveness between two variables is known as

Accepted Answer

A) Marginality 
B) Elasticity 
C) Demand 
D) Total Revenue

Question 8

Use Figure 1 to answer questions 
Figure SEQ Figure  1: Elasticities of Demand 
-Which of the graphs illustrate a relatively elastic demand curve?

Accepted Answer

A) Graph A 
B) Graph B 
C) Graph C 
D) Graph D

Question 9

A policy that focuses on a tax increases typically are on

Accepted Answer

A) Products that have price elasticity of demand that is elastic 
B) Products that have price elasticity of demand that is inelastic 
C) Products that have unit price elasticity of demand 
D) Products that have many substitutes

Question 10

If the price of a widget increases from $10 to $20 which of the following would be the expected result

Accepted Answer

A) Total revenue will increase 
B) Total revenue will decrease 
C) Total revenue will initially increase but return to previous level 
D) Total revenue will not be affected

Question 11

All of the following would result in a higher price elasticity of demand except

Accepted Answer

A) A longer time period 
B) Many substitutes 
C) Fewer substitutes 
D) A good that is considered a luxury

Question 12

Use Figure 1 to answer questions 
Figure SEQ Figure  1: Elasticities of Demand 
-Which of the graphs illustrate a perfectly inelastic demand curve?

Accepted Answer

A) Graph A 
B) Graph B 
C) Graph C 
D) Graph D

Question 13

Use the following information to answer questions 
 $$\begin{array} { | c | c | } 
\hline & \begin{array} { c } 
\text { Price Elasticity of } \
\text { Dernard }
\end{array} \
\hline \text { Good A } & 4.5 \
\hline \text { Good B } & .45 \
\hline \text { Good C } & .45 \
\hline \text { Good D } & 45 \
\hline
\end{array}$$
-If the price elasticity of demand for a product is equal to 0.7, then a 5 percent increase in price will

Accepted Answer

A) Increase quantity demand by .035% 
B) Increase quantity demanded by 3.5% 
C) Decrease quantity demanded by .035% 
D) Decrease quantity demanded by 3.5%

Question 14

When a given percent change in the price of a good causes a larger percent change in the quantity demanded of the good the good is considered

Accepted Answer

A) Elastic 
B) Inelastic 
C) Unit elastic 
D) Nonresponsive

Exam 5: Elasticity

Use Figure 1 to answer questions Figure SEQ Figure 1: Elasticities of Demand -Which of the graphs illustrate a good whose percentage change in quantity demanded is greater than the percentage change in price?

Use Figure 1 to answer questions Figure SEQ Figure 1: Elasticities of Demand -Which of the graphs illustrate a good whose percentage change in quantity demanded is less than the percentage change in price?

The amount of money earned when a supplier sells a given quantity of a good is

If the elasticity of demand is greater than one, the price elasticity of demand is

Reference: Use Figure 2 to answer questions Figure SEQ Figure 2: Demand for Widgets -If the price of a widget increases from $10 to $20 the absolute value of the price elasticity of demand is

The measurement of responsiveness between two variables is known as

Use Figure 1 to answer questions Figure SEQ Figure 1: Elasticities of Demand -Which of the graphs illustrate a relatively elastic demand curve?

A policy that focuses on a tax increases typically are on

If the price of a widget increases from $10 to $20 which of the following would be the expected result

All of the following would result in a higher price elasticity of demand except

Use Figure 1 to answer questions Figure SEQ Figure 1: Elasticities of Demand -Which of the graphs illustrate a perfectly inelastic demand curve?

When a given percent change in the price of a good causes a larger percent change in the quantity demanded of the good the good is considered