Enon 102 Quiz Chapter 4热门

1.

If the quantity supplied responds substantially to a relatively small change in price, supply would be:

A) price elastic.

B) price inelastic.

C) negatively sloped.

D) insensitive to changes in price.

Points Earned:

1.0/1.0

Correct Answer(s):

A

2.

Given a linear demand curve, we would expect that as we move down the curve from left to right that:

A) total revenue will fall throughout.

B) total revenue will rise throughout.

C) total revenue will change depending on the price elasticity, which changes along the curve.

D) total revenue will equal zero at the midpoint of the curve.

Points Earned:

1.0/1.0

Correct Answer(s):

C

3.

When the percentage change in quantity demanded is larger than the percentage change in price, demand is said to be:

A) price inelastic.

B) unit price elastic.

C) price elastic.

D) perfectly inelastic.

Points Earned:

1.0/1.0

Correct Answer(s):

C

4.

An important determinant of the price elasticity of demand is the:

A) price of related goods.

B) level of technology.

C) availability of substitutes.

D) quantity of the good supplied.

Points Earned:

1.0/1.0

Correct Answer(s):

C

Correct

5.

If the price elasticity of supply is greater than 1, then:

A) supply is price elastic.

B) supply is price inelastic.

C) supply is unit price elastic.

D) quantity supplied is relatively unresponsive to price changes.

Points Earned:

1.0/1.0

Correct Answer(s):

A

Correct

6.

The price elasticity of a good will tend to be greater:

A) the longer the relevant time period.

B) the fewer number of substitute goods available.

C) if it is a staple or necessity with few substitutes.

D) All of the above are true.

Points Earned:

1.0/1.0

Correct Answer(s):

A

Correct

7.

If a university decreases the price of tickets to football games in order to collect more revenue, it is assuming that the demand for tickets is:

A) unstable.

B) price inelastic.

C) price elastic.

D) unit price elastic.

Points Earned:

1.0/1.0

Correct Answer(s):

C

Correct

8.

If demand is unit price elastic, a change in price causes:

A) no change in total revenue.

B) a decrease in total revenue.

C) a change in total revenue in the opposite direction.

D) an increase in total revenue.

Points Earned:

1.0/1.0

Correct Answer(s):

A

Incorrect

9.

A linear demand curve will have a price elasticity of demand whose absolute value:

A) increases as price decreases.

B) decreases as price decreases.

C) is constant.

D) is -1 at all prices.

Points Earned:

0.0/1.0

Correct Answer(s):

B

Correct

10.

If the quantity demanded of agricultural output is very unresponsive to a fall in price, the demand for agricultural output is:

A) price elastic.

B) price inelastic.

C) positively sloped.

D) horizontal.

Points Earned:

1.0/1.0

Correct Answer(s):

B

Correct

11.

If demand is price elastic, a change in price in either direction (up or down) causes:

A) a change in total revenue in the opposite direction.

B) a change in total revenue in the same direction.

C) no change in total revenue.

D) an increase in total revenue.

Points Earned:

1.0/1.0

Correct Answer(s):

A

Correct

12.

A newspaper typically consumes a smaller fraction of a consumer's budget than a home entertainment system. Therefore, you would expect the demand for:

A) a home entertainment system to be more price elastic.

B) a home entertainment system to be more price inelastic.

C) newspapers to be more price elastic.

D) both to be equally price elastic.

Points Earned:

1.0/1.0

Correct Answer(s):

A

Correct

13.

Assuming a linear demand curve, lower prices would result in:

A) less price elastic demand.

B) more price elastic demand.

C) an increase in demand.

D) none of the above.

Points Earned:

1.0/1.0

Correct Answer(s):

A

Correct

14.

If the University of Michigan increases the price of football tickets, it will result in increasing revenues if the price elasticity of demand is

A) price inelastic.

B) price elastic.

C) equal to -1.

D) equal to -1.8.

Points Earned:

1.0/1.0

Correct Answer(s):

A

Correct 1.

When a public transit system (such as a subway or bus line) raises its fares, it may experience an increase in total revenue. This suggests that demand is:

A) unstable.

B) price inelastic.

C) price elastic.

D) unit price elastic.

Points Earned: 1.0/1.0 

Correct Answer(s): B

Correct 2.

If a good is a necessity with few substitutes, then the price elasticity of demand will tend to be:

A) more price elastic.

B) less price elastic.

C) equal to -1.

D) the same as that of a luxury good.

Points Earned: 1.0/1.0 

Correct Answer(s): B

Incorrect 3.

Along the lower half of a linear demand curve, the price elasticity of demand will be:

A) price inelastic.

B) price elastic.

C) unit price elastic.

D) positive.

Points Earned: 0.0/1.0 

Correct Answer(s): A

Correct 4.

The price elasticity of demand is measured by:

A) dividing the percentage change in price by the percentage change in quantity demanded.

B) dividing the percentage change in quantity demanded by the percentage change in price.

C) subtracting the percentage change in price from the percentage in quantity demanded.

D) adding the percentage change in price to the percentage change in quantity demanded.

Points Earned: 1.0/1.0 

Correct Answer(s): B

Correct 5.

A demand curve that is perfectly inelastic:

A) will be vertical.

B) will be horizontal.

C) will be upward sloping.

D) has an elasticity equal to 1 everywhere on the curve.

Points Earned: 1.0/1.0 

Correct Answer(s): A

Incorrect 6.

If total revenue goes down when price falls, the price elasticity of demand is said to be:

A) price inelastic.

B) unit price elastic.

C) price elastic.

D) positive.

Points Earned: 0.0/1.0 

Correct Answer(s): A

Correct 7.

If the total revenue received by a firm does not change when it raises its price, this indicates that the demand for the firm's product is:

A) unstable.

B) price inelastic.

C) price elastic.

D) unit price elastic.

Points Earned: 1.0/1.0 

Correct Answer(s): D

Correct 8.

If along a given segment of a demand curve price falls and total revenue ____________, then demand is price inelastic along that segment.

A) increases

B) decreases

C) stays the same

D) decreases at first and then increases

Points Earned: 1.0/1.0 

Correct Answer(s): B

Correct 9.

When the percentage change in quantity demanded is larger than the percentage change in price, demand is said to be:

A) price inelastic.

B) unit price elastic.

C) price elastic.

D) perfectly inelastic.

Points Earned: 1.0/1.0 

Correct Answer(s): C

Incorrect 10.

Assuming a linear demand curve, lower prices would result in:

A) less price elastic demand.

B) more price elastic demand.

C) an increase in demand.

D) none of the above.

Points Earned: 0.0/1.0 

Correct Answer(s): A

Incorrect 11.

The price elasticity of a good will tend to be greater:

A) the longer the relevant time period.

B) the fewer number of substitute goods available.

C) if it is a staple or necessity with few substitutes.

D) All of the above are true.

Points Earned: 0.0/1.0 

Correct Answer(s): A

Correct 12.

A price elastic demand exists if a 10 percent change in the price of a good results in a percentage change (in absolute value terms) in quantity demanded that is:

A) less than 0.

B) greater than 0 but less than 10.

C) equal to 10.

D) greater than 10.

Points Earned: 1.0/1.0 

Correct Answer(s): D

Correct 13.

Price elasticity of demand measures the responsiveness of the change in:

A) quantity demanded to a change in price.

B) price to a change in quantity demanded.

C) slope of the demand curve to a change in price.

D) slope of the demand curve to a change in quantity demanded.

Points Earned: 1.0/1.0 

Correct Answer(s): A

Correct 14.

The ratio of the percentage change in a dependent variable to the percentage change in an independent variable, all other things unchanged, is:

A) total revenue.

B) production possibilities.

C) elasticity.

D) slope.

Correct 1.

The price elasticity of supply measures:

A) the response of a supply shift to changes in technology.

B) how much supply changes when the prices of inputs change.

C) the responsiveness of quantity supplied to changes in prices.

D) all of the above.

Points Earned: 1.0/1.0 

Correct Answer(s): C

Correct 2.

Assuming a linear demand curve, lower prices would result in:

A) less price elastic demand.

B) more price elastic demand.

C) an increase in demand.

D) none of the above.

Points Earned: 1.0/1.0 

Correct Answer(s): A

Correct 3.

If the total revenue received by a firm decreases when it raises its price, this indicates that the demand for the firm's product is:

A) unstable.

B) price inelastic.

C) price elastic.

D) unit price elastic.

Points Earned: 1.0/1.0 

Correct Answer(s): C

Correct 4.

Along the lower half of a linear demand curve, the price elasticity of demand will be:

A) price inelastic.

B) price elastic.

C) unit price elastic.

D) positive.

Points Earned: 1.0/1.0 

Correct Answer(s): A

Correct 5.

If along a given segment of a demand curve price falls and total revenue ____________, then demand is price inelastic along that segment.

A) increases

B) decreases

C) stays the same

D) decreases at first and then increases

Points Earned: 1.0/1.0 

Correct Answer(s): B

Correct 6.

If total revenue goes up when price falls, the price elasticity of demand is said to be:

A) price inelastic.

B) unit price elastic.

C) price elastic.

D) positive.

Points Earned: 1.0/1.0 

Correct Answer(s): C

Correct 7.

If the price of a good is increased by 15 percent and the quantity demanded changes by 20 percent, then the price elasticity of demand is equal to:

A) 0.75.

B) approximately -0.33

C) approximately -1.33.

D) -1.

Points Earned: 1.0/1.0 

Correct Answer(s): C

Correct 8.

Along the upper half of a linear demand curve, the price elasticity of demand will be:

A) price inelastic.

B) price elastic.

C) unit price elastic.

D) positive.

Points Earned: 1.0/1.0 

Correct Answer(s): B

Correct 9.

Price elasticity of demand measures the responsiveness of the change in:

A) quantity demanded to a change in price.

B) price to a change in quantity demanded.

C) slope of the demand curve to a change in price.

D) slope of the demand curve to a change in quantity demanded.

Points Earned: 1.0/1.0 

Correct Answer(s): A

Correct 10.

If demand is price elastic, a change in price in either direction (up or down) causes:

A) a change in total revenue in the opposite direction.

B) a change in total revenue in the same direction.

C) no change in total revenue.

D) an increase in total revenue.

Points Earned: 1.0/1.0 

Correct Answer(s): A

Correct 11.

Demand is price inelastic when:

A) price falls and total revenue decreases.

B) price increases and total revenue decreases.

C) price decreases and total revenue stays the same.

D) price decreases and total revenue goes up.

Points Earned: 1.0/1.0 

Correct Answer(s): A

Correct 12.

A demand curve that is perfectly inelastic:

A) will be vertical.

B) will be horizontal.

C) will be upward sloping.

D) has an elasticity equal to 1 everywhere on the curve.

Points Earned: 1.0/1.0 

Correct Answer(s): A

Correct 13.

A linear demand curve will have which of the following properties?

A) a slope that is constant and price elasticity that varies

B) constant slope and constant price elasticity

C) constant price elasticity and varying slope

D) varying slope and varying elasticity

Points Earned: 1.0/1.0 

Correct Answer(s): A

Correct 14.

When the percentage change in quantity demanded is larger than the percentage change in price, demand is said to be:

A) price inelastic.

B) unit price elastic.

C) price elastic.

D) perfectly inelastic.

Points Earned: 1.0/1.0 

Correct Answer(s): C

Correct 1. If the quantity demanded of agricultural output is very unresponsive to a fall in price, the demand for agricultural output is:

 A) price elastic.

 B) price inelastic. 

C) positively sloped. 

D) horizontal. 

Points Earned: 1.0/1.0 Correct Answer(s): B 

Correct 2. There are several close substitutes for Bayer aspirin but fewer substitutes for a complete medical examination. Therefore, you would expect the demand for: 

A) medical exams to be more price elastic. 

B) Bayer aspirin to be more price elastic. 

C) Bayer aspirin to be more price inelastic. 

D) both to be equally price elastic. Points Earned: 1.0/1.0 

Correct Answer(s): B 

Correct 3. If the demand for a good is price elastic, then: 

A) a higher per-unit sales tax will generate more tax revenue. 

B) a higher per-unit sales tax will generate less tax revenue. 

C) changes in total per-unit sales tax revenue brought about by a price change go in the same direction as the price change. 

D) none of the above is true. Points Earned: 1.0/1.0 

Correct Answer(s): B 

Correct 4. When the percentage change in quantity demanded is larger than the percentage change in price, demand is said to be: 

A) price inelastic. 

B) unit price elastic. 

C) price elastic. 

D) perfectly inelastic. Points Earned: 1.0/1.0 

Correct Answer(s): C In

Correct 5. A linear demand curve will have which of the following properties? 

A) a slope that is constant and price elasticity that varies 

B) constant slope and constant price elasticity 

C) constant price elasticity and varying slope 

D) varying slope and varying elasticity Points Earned: 0.0/1.0 

Correct Answer(s): A 

Correct 6. Which factor is the most important in determining the price elasticity of supply? 

A) the number of close substitutes 

B) the time period the producer has to adjust inputs and outputs 

C) the intensity of the need on behalf of consumers 

D) the number of alternative uses of the good Points Earned: 1.0/1.0 

Correct Answer(s): B 

Correct 7. If the price elasticity of demand is found to be -3/4, then demand is: 

A) price inelastic. 

B) price elastic. 

C) unit price elastic. 

D) positively sloped. Points Earned: 1.0/1.0 

Correct Answer(s): A 

Correct 8. If someone did not regard health care as very important, often using home remedies and other substitutes, his or her demand curve for health care would most likely be ________ over the relevant range of prices for health care. 

A) more price elastic 

B) more price inelastic 

C) horizontal 

D) vertical Points Earned: 1.0/1.0 

Correct Answer(s): A 

Correct 9. If the price elasticity of supply is greater than 1, then: 

A) supply is price elastic. 

B) supply is price inelastic. 

C) supply is unit price elastic. 

D) quantity supplied is relatively unresponsive to price changes. Points Earned: 1.0/1.0 

Correct Answer(s): A 

Correct 10. If the price elasticity of demand is found to be -6, then demand is: 

A) price inelastic. 

B) price elastic. 

C) unit price elastic. 

D) horizontal. Points Earned: 1.0/1.0 

Correct Answer(s): B 

Correct 11. If the demand for golf is price inelastic and your local public golf course increases the greens fees for using the course, you would expect: 

A) a decrease in total revenue received by the course. 

B) an increase in total revenue received by the course. 

C) an increase in the amount of golf played on the course. 

D) no change in the amount of golf played on the course. Points Earned: 1.0/1.0 

Correct Answer(s): B 

Correct 12. The price elasticity of demand can be found by: 

A) examining only the slope of the demand curve. 

B) measuring absolute changes in price and quantity demanded. 

C) examining the relative percentage change in quantity demanded to the relative percentage change in price. 

D) knowing that when price changes, the quantity demanded goes in the opposite direction. Points Earned: 1.0/1.0 

Correct Answer(s): C 

Correct 13. If total revenue goes down when price falls, the price elasticity of demand is said to be: 

A) price inelastic. 

B) unit price elastic. 

C) price elastic. 

D) positive. Points Earned: 1.0/1.0 

Correct Answer(s): A 

Correct 14. If demand is price elastic, a change in price in either direction (up or down) causes: 

A) a change in total revenue in the opposite direction. 

B) a change in total revenue in the same direction. 

C) no change in total revenue. 

D) an increase in total revenue. Points Earned: 1.0/1.0 

Correct Answer(s): A 

Correct 1. If the quantity demanded of agricultural output is very unresponsive to a fall in price, the demand for agricultural output is: 

A) price elastic. 

B) price inelastic. 

C) positively sloped. 

D) horizontal. Points Earned: 1.0/1.0 

Correct Answer(s): B 

Correct 2. There are several close substitutes for Bayer aspirin but fewer substitutes for a complete medical examination. Therefore, you would expect the demand for: 

A) medical exams to be more price elastic. 

B) Bayer aspirin to be more price elastic. 

C) Bayer aspirin to be more price inelastic. 

D) both to be equally price elastic. Points Earned: 1.0/1.0 

Correct Answer(s): B 

Correct 3. If the demand for a good is price elastic, then: 

A) a higher per-unit sales tax will generate more tax revenue. 

B) a higher per-unit sales tax will generate less tax revenue. 

C) changes in total per-unit sales tax revenue brought about by a price change go in the same direction as the price change. 

D) none of the above is true. Points Earned: 1.0/1.0 

Correct Answer(s): B 

Correct 4. When the percentage change in quantity demanded is larger than the percentage change in price, demand is said to be: 

A) price inelastic. 

B) unit price elastic. 

C) price elastic. 

D) perfectly inelastic. Points Earned: 1.0/1.0 

Correct Answer(s): C In

Correct 5. A linear demand curve will have which of the following properties? 

A) a slope that is constant and price elasticity that varies 

B) constant slope and constant price elasticity 

C) constant price elasticity and varying slope 

D) varying slope and varying elasticity Points Earned: 0.0/1.0 

Correct Answer(s): A 

Correct 6. Which factor is the most important in determining the price elasticity of supply? 

A) the number of close substitutes 

B) the time period the producer has to adjust inputs and outputs 

C) the intensity of the need on behalf of consumers 

D) the number of alternative uses of the good Points Earned: 1.0/1.0 

Correct Answer(s): B 

Correct 7. If the price elasticity of demand is found to be -3/4, then demand is: 

A) price inelastic. 

B) price elastic. 

C) unit price elastic. 

D) positively sloped. Points Earned: 1.0/1.0 

Correct Answer(s): A 

Correct 8. If someone did not regard health care as very important, often using home remedies and other substitutes, his or her demand curve for health care would most likely be ________ over the relevant range of prices for health care. 

A) more price elastic 

B) more price inelastic 

C) horizontal 

D) vertical Points Earned: 1.0/1.0 

Correct Answer(s): A 

Correct 9. If the price elasticity of supply is greater than 1, then: 

A) supply is price elastic. 

B) supply is price inelastic. 

C) supply is unit price elastic. 

D) quantity supplied is relatively unresponsive to price changes. Points Earned: 1.0/1.0 

Correct Answer(s): A 

Correct 10. If the price elasticity of demand is found to be -6, then demand is: 

A) price inelastic. 

B) price elastic. 

C) unit price elastic. 

D) horizontal. Points Earned: 1.0/1.0 

Correct Answer(s): B 

Correct 11. If the demand for golf is price inelastic and your local public golf course increases the greens fees for using the course, you would expect: 

A) a decrease in total revenue received by the course. 

B) an increase in total revenue received by the course. 

C) an increase in the amount of golf played on the course. 

D) no change in the amount of golf played on the course. Points Earned: 1.0/1.0 

Correct Answer(s): B 

Correct 12. The price elasticity of demand can be found by: 

A) examining only the slope of the demand curve. 

B) measuring absolute changes in price and quantity demanded. 

C) examining the relative percentage change in quantity demanded to the relative percentage change in price. 

D) knowing that when price changes, the quantity demanded goes in the opposite direction. Points Earned: 1.0/1.0 

Correct Answer(s): C 

Correct 13. If total revenue goes down when price falls, the price elasticity of demand is said to be: 

A) price inelastic. 

B) unit price elastic. 

C) price elastic. 

D) positive. Points Earned: 1.0/1.0 

Correct Answer(s): A 

Correct 14. If demand is price elastic, a change in price in either direction (up or down) causes: 

A) a change in total revenue in the opposite direction. 

B) a change in total revenue in the same direction. 

C) no change in total revenue. 

D) an increase in total revenue. Points Earned: 1.0/1.0 

Correct Answer(s): A 

Correct 1. The price elasticity of demand is: 

A) always positive. 

B) always greater than 1. 

C) usually equal to 1. 

D) always negative. Points Earned: 1.0/1.0 

Correct Answer(s): D 

Correct 2. When the percentage change in quantity demanded is larger than the percentage change in price, demand is said to be: 

A) price inelastic. 

B) unit price elastic. 

C) price elastic. 

D) perfectly inelastic. Points Earned: 1.0/1.0 

Correct Answer(s): C 

Correct 3. If a good is a luxury item that looms large in the household budget, then the price elasticity of demand will tend to be: 

A) more price elastic. 

B) less price elastic. 

C) equal to -1. 

D) the same as that of a good that is a necessity. Points Earned: 1.0/1.0 

Correct Answer(s): A In

Correct 4. An upward movement along a linear demand curve from lower prices to higher prices will result in: 

A) constant price elasticity. 

B) lower price elasticity. 

C) increasing price elasticity. 

D) unit price elasticity along the entire curve. Points Earned: 0.0/1.0 

Correct Answer(s): C 

Correct 5. If demand is price elastic, a change in price in either direction (up or down) causes: 

A) a change in total revenue in the opposite direction. 

B) a change in total revenue in the same direction. 

C) no change in total revenue. 

D) an increase in total revenue. Points Earned: 1.0/1.0 

Correct Answer(s): A 

Correct 6. If the price elasticity of demand is found to be -6, then demand is: 

A) price inelastic. 

B) price elastic. 

C) unit price elastic. 

D) horizontal. Points Earned: 1.0/1.0 

Correct Answer(s): B 

Correct 7. The ratio of the percentage change in a dependent variable to the percentage change in an independent variable, all other things unchanged, is: 

A) total revenue. 

B) production possibilities. 

C) elasticity. 

D) slope. Points Earned: 1.0/1.0 

Correct Answer(s): C 

Correct 8. If the University of Michigan increases the price of football tickets, it will result in increasing revenues if the price elasticity of demand is 

A) price inelastic. 

B) price elastic. 

C) equal to -1. 

D) equal to -1.8. Points Earned: 1.0/1.0 

Correct Answer(s): A 

Correct 9. If the total revenue received by a firm decreases when it raises its price, this indicates that the demand for the firm's product is: 

A) unstable. 

B) price inelastic. 

C) price elastic. 

D) unit price elastic. Points Earned: 1.0/1.0 

Correct Answer(s): C In

Correct 10. If a good has a price inelastic demand, then which of the following is not likely to be characteristic of this good? 

A) The good is a necessity and is relatively unimportant in the household budget. 

B) There are many substitutes for the good. 

C) Consumers spend a small percentage of their income on the good. 

D) Consumers do not have much time to adjust to market changes. Points Earned: 0.0/1.0 

Correct Answer(s): B 

Correct 11. The demand for strawberry ice cream tends to be relatively price elastic because: 

A) for most people there are many close substitutes for strawberry ice cream. 

B) there are few substitutes for it. 

C) it has to be consumed very quickly. 

D) it costs so little. Points Earned: 1.0/1.0 

Correct Answer(s): A 

Correct 12. Demand is price inelastic when: 

A) price falls and total revenue decreases. 

B) price increases and total revenue decreases. 

C) price decreases and total revenue stays the same. 

D) price decreases and total revenue goes up. Points Earned: 1.0/1.0 

Correct Answer(s): A In

Correct 13. A price inelastic demand exists if a 10 percent change in the price of a good results in a percentage change (in absolute value terms) in quantity demanded that is: 

A) less than 0. 

B) greater than 0 but less than 10. 

C) equal to 10. 

D) greater than 10. Points Earned: 0.0/1.0 

Correct Answer(s): B 

Correct 14. The price elasticity of a good will tend to be greater: 

A) the longer the relevant time period. 

B) the fewer number of substitute goods available. 

C) if it is a staple or necessity with few substitutes. 

D) All of the above are true. Points Earned: 1.0/1.0 

Correct Answer(s): A

 

1. If the price elasticity of supply is greater than 1, then:

A) supply is price elastic.

B) supply is price inelastic.

C) supply is unit price elastic.

D) quantity supplied is relatively unresponsive to price changes.

Points Earned: 1.0/1.0

Correct Answer(s): A

CorrectIncorrect Ungraded

2.

If along a given segment of a demand curve price falls and total revenue ____________, then demand is price inelastic along that segment.

A) increases

B) decreases

C) stays the same

D) decreases at first and then increases

Points Earned: 1.0/1.0

Correct Answer(s): B

CorrectIncorrect Ungraded

3.

The price elasticity of demand is measured by:

A) dividing the percentage change in price by the percentage change in quantity demanded.

B) dividing the percentage change in quantity demanded by the percentage change in price.

C) subtracting the percentage change in price from the percentage in quantity demanded.

D) adding the percentage change in price to the percentage change in quantity demanded.

Points Earned: 1.0/1.0

Correct Answer(s): B

CorrectIncorrect Ungraded

4.

The price elasticity of supply measures:

A) the response of a supply shift to changes in technology.

B) how much supply changes when the prices of inputs change.

C) the responsiveness of quantity supplied to changes in prices.

D) all of the above.

Points Earned: 1.0/1.0

Correct Answer(s): C

Correct IncorrectUngraded

5.

Determining whether the price elasticity of demand is price elastic, unit price elastic, or price inelastic is done by:

A) comparing the percentage change in quantity demanded to the percentage change in price.

B) examining the ratio of the change in quantity to the change in price.

C) examining the slope of the demand curve.

D) examining the ratio of the change in price to the change in quantity

Points Earned: 0.0/1.0

Correct Answer(s): A

CorrectIncorrect Ungraded

6.

A price inelastic demand exists if a 10 percent change in the price of a good results in a percentage change (in absolute value terms) in quantity demanded that is:

A) less than 0.

B) greater than 0 but less than 10.

C) equal to 10.

D) greater than 10.

Points Earned: 1.0/1.0

Correct Answer(s): B

CorrectIncorrect Ungraded

7.

If a good has a price inelastic demand, then which of the following is not likely to be characteristic of this good?

A) The good is a necessity and is relatively unimportant in the household budget.

B) There are many substitutes for the good.

C) Consumers spend a small percentage of their income on the good.

D) Consumers do not have much time to adjust to market changes.

Points Earned: 1.0/1.0

Correct Answer(s): B

CorrectIncorrect Ungraded

8.

If the demand for golf is price inelastic and your local public golf course increases the greens fees for using the course, you would expect:

A) a decrease in total revenue received by the course.

B) an increase in total revenue received by the course.

C) an increase in the amount of golf played on the course.

D) no change in the amount of golf played on the course.

Points Earned: 1.0/1.0

Correct Answer(s): B

CorrectIncorrect Ungraded

9.

If total revenue goes up when price falls, the price elasticity of demand is said to be:

A) price inelastic.

B) unit price elastic.

C) price elastic.

D) positive.

Points Earned: 1.0/1.0

Correct Answer(s): C

CorrectIncorrect Ungraded

10.

If the total revenue received by a firm increases when it raises its price, this indicates that the demand for the firm's product is:

A) unstable.

B) price inelastic.

C) price elastic.

D) unit price elastic.

Points Earned: 1.0/1.0

Correct Answer(s): B

CorrectIncorrect Ungraded

11.

A newspaper typically consumes a smaller fraction of a consumer's budget than a home entertainment system. Therefore, you would expect the demand for:

A) a home entertainment system to be more price elastic.

B) a home entertainment system to be more price inelastic.

C) newspapers to be more price elastic.

D) both to be equally price elastic.

Points Earned: 1.0/1.0

Correct Answer(s): A

CorrectIncorrect Ungraded

12.

If demand is unit price elastic, a change in price causes:

A) no change in total revenue.

B) a decrease in total revenue.

C) a change in total revenue in the opposite direction.

D) an increase in total revenue.

Points Earned: 1.0/1.0

Correct Answer(s): A

Correct IncorrectUngraded

13.

A linear demand curve:

A) has a constant price elasticity of demand.

B) has price elasticity of demand equal to one.

C) has price elasticity of demand that is positive.

D) can have both elastic and inelastic price elasticity of demand.

Points Earned: 0.0/1.0

Correct Answer(s): D

CorrectIncorrect Ungraded

14.

The price elasticity of demand is:

A) always positive.

B) always greater than 1.

C) usually equal to 1.

D) always negative.

Points Earned: 1.0/1.0

Correct Answer(s): D

Correct IncorrectUngraded

1.

If a university decreases the price of tickets to football games in order to collect more revenue, it is assuming that the demand for tickets is:

A) unstable.

B) price inelastic.

C) price elastic.

D) unit price elastic.

Points Earned: 0.0/1.0

Correct Answer(s): C

Correct IncorrectUngraded

2.

If the price of a good is increased by 15 percent and the quantity demanded falls by 20 percent, the price elasticity of demand is:

A) price elastic.

B) price inelastic.

C) unit price elastic.

D) normal.

Points Earned: 0.0/1.0

Correct Answer(s): A

Correct IncorrectUngraded

3.

If the demand for golf is unit price elastic and your local public golf course increases the greens fees for using the course, you would expect:

A) a decrease in total revenue received by the course.

B) an increase in total revenue received by the course.

C) a decrease in the amount of golf played on the course.

D) no change in the amount of golf played on the course.

Points Earned: 0.0/1.0

Correct Answer(s): C

Correct IncorrectUngraded

4.

Given a linear demand curve, we would expect that as we move down the curve from left to right that:

A) total revenue will fall throughout.

B) total revenue will rise throughout.

C) total revenue will change depending on the price elasticity, which changes along the curve.

D) total revenue will equal zero at the midpoint of the curve.

Points Earned: 0.0/1.0

Correct Answer(s): C

Correct IncorrectUngraded

5.

Determining whether the price elasticity of demand is price elastic, unit price elastic, or price inelastic is done by:

A) comparing the percentage change in quantity demanded to the percentage change in price.

B) examining the ratio of the change in quantity to the change in price.

C) examining the slope of the demand curve.

D) examining the ratio of the change in price to the change in quantity

Points Earned: 0.0/1.0

Correct Answer(s): A

Correct IncorrectUngraded

6.

Assuming a linear demand curve, lower prices would result in:

A) less price elastic demand.

B) more price elastic demand.

C) an increase in demand.

D) none of the above.

Points Earned: 0.0/1.0

Correct Answer(s): A

Correct IncorrectUngraded

7.

A constant price elasticity of demand curve is one whose:

A) slope is the same at every point on the curve.

B) price elasticity of demand is the same at every point on the curve.

C) quantity is the same at every point on the curve.

D) price elasticity of demand and slope are the same at every point on the curve.

Points Earned: 0.0/1.0

Correct Answer(s): B

Correct IncorrectUngraded

8.

If a change in price causes total revenue to change in the same direction, we can conclude that the demand is:

A) price inelastic.

B) price elastic.

C) unit price elastic.

D) normal.

Points Earned: 0.0/1.0

Correct Answer(s): A

Correct IncorrectUngraded

9.

A price elastic demand exists if a 10 percent change in the price of a good results in a percentage change (in absolute value terms) in quantity demanded that is:

A) less than 0.

B) greater than 0 but less than 10.

C) equal to 10.

D) greater than 10.

Points Earned: 0.0/1.0

Correct Answer(s): D

Correct IncorrectUngraded

10.

If a good is a luxury item that looms large in the household budget, then the price elasticity of demand will tend to be:

A) more price elastic.

B) less price elastic.

C) equal to -1.

D) the same as that of a good that is a necessity.

Points Earned: 0.0/1.0

Correct Answer(s): A

Correct IncorrectUngraded

11.

Which factor is the most important in determining the price elasticity of supply?

A) the number of close substitutes

B) the time period the producer has to adjust inputs and outputs

C) the intensity of the need on behalf of consumers

D) the number of alternative uses of the good

Points Earned: 0.0/1.0

Correct Answer(s): B

Correct IncorrectUngraded

12.

If the quantity supplied responds substantially to a relatively small change in price, supply would be:

A) price elastic.

B) price inelastic.

C) negatively sloped.

D) insensitive to changes in price.

Points Earned: 0.0/1.0

Correct Answer(s): A

Correct IncorrectUngraded

13.

If demand is price elastic, it is certain that:

A) any change in price will decrease total revenue.

B) a decrease in price will lower total revenue.

C) an increase in price will lower total revenue.

D) total revenue is at a maximum.

Points Earned: 0.0/1.0

Correct Answer(s): C

Correct IncorrectUngraded

14.

When a public transit system (such as a subway or bus line) raises its fares, it may experience an increase in total revenue. This suggests that demand is:

A) unstable.

B) price inelastic.

C) price elastic.

D) unit price elastic.

Points Earned: 0.0/1.0

Correct Answer(s): B

 

 

 

1.

A linear demand curve will have which of the following properties?

A) a slope that is constant and price elasticity that varies

B) constant slope and constant price elasticity

C) constant price elasticity and varying slope

D) varying slope and varying elasticity

Points Earned: 1.0/1.0

Correct Answer(s): A

Correct

2.

The price elasticity of demand is measured by:

A) dividing the percentage change in price by the percentage change in quantity demanded.

B) dividing the percentage change in quantity demanded by the percentage change in price.

C) subtracting the percentage change in price from the percentage in quantity demanded.

D) adding the percentage change in price to the percentage change in quantity demanded.

Points Earned: 1.0/1.0

Correct Answer(s): B

Correct

3.

If a good is a luxury item that looms large in the household budget, then the price elasticity of demand will tend to be:

A) more price elastic.

B) less price elastic.

C) equal to -1.

D) the same as that of a good that is a necessity.

Points Earned: 1.0/1.0

Correct Answer(s): A

Correct

4.

If total revenue goes down when price falls, the price elasticity of demand is said to be:

A) price inelastic.

B) unit price elastic.

C) price elastic.

D) positive.

Points Earned: 1.0/1.0

Correct Answer(s): A

Correct

5.

A demand curve that is perfectly inelastic:

A) will be vertical.

B) will be horizontal.

C) will be upward sloping.

D) has an elasticity equal to 1 everywhere on the curve.

Points Earned: 1.0/1.0

Correct Answer(s): A

Correct

6.

If demand is price inelastic, a change in price in either direction (up or down) causes:

A) a change in total revenue in the opposite direction.

B) a change in total revenue in the same direction.

C) an increase in total revenue.

D) a decrease in total revenue.

Points Earned: 1.0/1.0

Correct Answer(s): B

Correct

7.

If the absolute value of price elasticity is greater than 1, this means the demand curve in that region is:

A) price elastic.

B) price inelastic.

C) unit price elastic.

D) upward sloping.

Points Earned: 1.0/1.0

Correct Answer(s): A

Correct

8.

If the price elasticity of supply is greater than 1, then:

A) supply is price elastic.

B) supply is price inelastic.

C) supply is unit price elastic.

D) quantity supplied is relatively unresponsive to price changes.

Points Earned: 1.0/1.0

Correct Answer(s): A

Correct

9.

An upward movement along a linear demand curve from lower prices to higher prices will result in:

A) constant price elasticity.

B) lower price elasticity.

C) increasing price elasticity.

D) unit price elasticity along the entire curve.

Points Earned: 1.0/1.0

Correct Answer(s): C

Incorrect

10.

If the demand for golf is price elastic and your local public golf course increases the greens fees for using the course, you would expect:

A) a decrease in total revenue received by the course.

B) an increase in total revenue received by the course.

C) no change in total revenue received by the course.

D) an increase in the amount of golf played on the course.

Points Earned: 0.0/1.0

Correct Answer(s): A

Correct

11.

If the price elasticity of demand is found to be -6, then demand is:

A) price inelastic.

B) price elastic.

C) unit price elastic.

D) horizontal.

Points Earned: 1.0/1.0

Correct Answer(s): B

Correct

12.

The concept of price elasticity of supply can be applied to labor:

A) to show the amount of income earned at different wage rates.

B) to show how the quantity of labor supplied responds to changes in wages and salaries.

C) to determine how responsive the demand for labor is to changes in wages and salaries.

D) to do all of the above.

Points Earned: 1.0/1.0

Correct Answer(s): B

Correct

13.

The price elasticity of demand is:

A) always positive.

B) always greater than 1.

C) usually equal to 1.

D) always negative.

Points Earned: 1.0/1.0

Correct Answer(s): D

Correct

14.

If the price elasticity of supply is less than 1, then supply is:

A) price elastic.

B) price inelastic.

C) unit price elastic.

D) very responsive to price changes.

Points Earned: 1.0/1.0

Correct Answer(s): B

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