Multiple Choice Questions

the price elasticity of demand coefficient measures:
  • responsive the quantity supplied of x is to changes in the price of x.
  • negative, but the minus sign is ignored.
  • buyer responsiveness to price changes.
  • decrease by approximately 12 percent
a leftward shift in the supply curve of product x will increase equilibrium price to a greater extent the:
  • an increase in price will increase total revenue
  • the elasticity coefficient is less than one.
  • negative, indicating complementary goods.
  • more inelastic the demand for the product.
moving upward on a downward-sloping straight-line demand curve, we find that price elasticity:
  • increase the quantity demanded by about 25 percent
  • increase the amount demanded by more than 10 percent.
  • increases continuously.
  • greater than on
if a demand for a product is elastic, the value of the price elasticity coefficient is:
  • decrease the quantity of x demanded by less than 4 percent.
  • greater their substitutability.
  • increase the amount demanded by more than 10 percent.
  • greater than on
a perfectly inelastic demand schedule:
  • can be represented by a line parallel to the vertical axis.
  • responsive the quantity supplied of x is to changes in the price of x.
  • the demand for the product is inelastic in this price range.
  • quantity demanded of x/percentage change in price of y.
if the income elasticity of demand for lard is 3.00, this means that:
  • lard is an inferior good.
  • demand is elastic
  • price rises and demand is elastic
  • relatively price inelastic.
in which of the following instances will total revenue decline?
  • price rises and demand is elastic
  • lard is an inferior good.
  • buyer responsiveness to price changes.
  • the elasticity coefficient is less than one.
if the price of hand calculators falls from $10 to $9 and, as a result, the quantity demanded increases from 100 to 125, then:
  • decrease by approximately 12 percent
  • increase the quantity demanded by about 25 percent
  • demand is elastic
  • lard is an inferior good.
the basic formula for the price elasticity of demand coefficient is:
  • responsive the quantity supplied of x is to changes in the price of x.
  • elastic in high-price ranges and inelastic on low-price ranges.
  • percentage change in quantity demanded/percentage change in price.
  • quantity demanded of x/percentage change in price of y.
the price elasticity of supply measures how:
  • responsive the quantity supplied of x is to changes in the price of x.
  • elastic in high-price ranges and inelastic on low-price ranges.
  • buyer responsiveness to price changes.
  • negative, but the minus sign is ignored.
the supply of known monet paintings is:
  • relatively price inelastic.
  • negative, but the minus sign is ignored.
  • perfectly inelastic.
  • lard is an inferior good.
suppose the supply of product x is perfectly inelastic. if there is an increase in the demand for this product, equilibrium price:
  • an increase in price will increase total revenue
  • will increase but equilibrium quantity will be unchanged.
  • increase the quantity demanded by about 25 percent
  • increase the amount demanded by more than 10 percent.
the larger the positive cross elasticity coefficient of demand between products x and y, the:
  • relatively price inelastic.
  • greater than on
  • increase the quantity demanded by about 25 percent
  • greater their substitutability.
if the price elasticity of demand for gasoline is 0.20:
  • responsive the quantity supplied of x is to changes in the price of x.
  • the demand for the product is inelastic in this price range.
  • increase the quantity demanded by about 25 percent
  • a 10 percent rise in the price of gasoline will decrease the amount purchased by 2 percent.
the price elasticity of demand for beef is about 0.other things equal, this means that a 20 percent increase in the price of beef will cause the quantity of beef demanded to:
  • negative, but the minus sign is ignored.
  • increase the quantity demanded by about 25 percent
  • buyer responsiveness to price changes.
  • decrease by approximately 12 percent
we would expect the cross elasticity of demand between dress shirts and ties to be:
  • negative, indicating complementary goods.
  • relatively price inelastic.
  • negative, but the minus sign is ignored.
  • buyer responsiveness to price changes.
when the percentage change in price is greater than the resulting percentage change in quantity demanded:
  • an increase in price will increase total revenue
  • increase the quantity demanded by about 25 percent
  • will increase but equilibrium quantity will be unchanged.
  • increase the amount demanded by more than 10 percent.
the demands for such products as salt, bread, and electricity tend to be:
  • greater their substitutability.
  • relatively price inelastic.
  • negative, indicating complementary goods.
  • greater than on
the main determinant of elasticity of supply is the:
  • responsive the quantity supplied of x is to changes in the price of x.
  • elastic in high-price ranges and inelastic on low-price ranges.
  • amount of time the producer has to adjust inputs in response to a price change.
  • percentage change in quantity demanded/percentage change in price.
which of the following is not characteristic of the demand for a commodity that is elastic?
  • price rises and demand is elastic
  • more inelastic the demand for the product.
  • the elasticity coefficient is less than one.
  • increase the quantity demanded by about 25 percent
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Multiple Choice Questions
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