Question 1

Suppose at a price of $10 the quantity demanded is 100.When price falls to $8, the quantity demanded increases to 130.The price elasticity of demand between the prices of $10 and $8 is approximately:

Accepted Answer

A)   -1.17.
B)   -1.50.
C)   -0.85.
D)   -1.00.

Question 2

A linear demand curve will have absolute values of the coefficient of price elasticity that:

Accepted Answer

A)   exist only for a portion of the curve; on some portions elasticity cannot be measured.
B)   are all less than 1.
C)   are all equal to 1.
D)   range from less than 1 to greater than 1.

Question 3

Use the following for questions 108-115.
Exhibit: The Demand for Bungalow Bob's Bagels
 
-(Exhibit: The Demand for Bungalow Bob's Bagels)  Total revenue remains unchanged if the price ________ from ________.

Accepted Answer

A)   decreases; $0.50 to $0.40
B)   decreases; $0.60 to $0.50
C)   decreases; $0.70 to $0.60
D)   increases; $0.60 to $0.70

Question 4

Supply curves tend to be more ________ the greater the time period facing the producer.

Accepted Answer

A)   price inelastic
B)   price elastic
C)   steeply sloped
D)   inflexible

Question 5

The Case in Point on Child Labor in Pakistan indicated that the wage elasticity for girls was _____ indicating that the labor supply curve was _____.

Accepted Answer

A)   positive; upward sloping
B)   negative; downward sloping
C)   zero; horizontal
D)   zero; vertical

Question 6

To say that two goods are unrelated, their cross price elasticities of demand should be:

Accepted Answer

A)   less than zero.
B)   significantly negative.
C)   equal to zero.
D)   greater than zero.

Question 7

Use the following to answer question(s) : 
-(Exhibit: Demand and Price Elasticity 1)  What is the price elasticity of demand between $2.00 and $1.75?

Accepted Answer

A)   -2.33
B)   -3.00
C)   -4.00
D)   none of the above

Question 8

Use the following to answer question(s) : Demand and Price Elasticity 2
 
-(Exhibit: Demand and Price Elasticity 2)  The price elasticity of demand between points D and E is:

Accepted Answer

A)   -.14
B)   -.29
C)   -.33
D)   -.37

Question 9

Use the following for questions 128-130.
Exhibit: Nonlinear Demand Curve
 
-(Exhibit: Nonlinear Demand Curve)  The values for quantity demanded along this nonlinear demand curve are given by the formula Q = 24/P.For this curve:

Accepted Answer

A)   total revenue is constant at all prices.
B)   price elasticity falls as price rises.
C)   price elasticity rises as price rises.
D)   demand is price inelastic throughout.

Question 10

When price goes down, the quantity demanded goes up.Price elasticity measures:

Accepted Answer

A)   how much the price goes down.
B)   how much the quantity goes up.
C)   how responsive the price change is in relation to the quantity change.
D)   how responsive the quantity change is in relation to the price change.

Question 11

Use the following for questions 116-119.
Exhibit: The Demand for Macintosh Computers
 
-(Exhibit: Demand for Macintosh Computers)  The seller's total revenue at point S equals the:

Accepted Answer

A)   distance 0P.
B)   distance MS.
C)   area 0TUM.
D)   area 0PSM.

Question 12

If the president of a university decides to increase tuition in order to cover the increase in operating costs, do you think this policy would succeed? Why or why not? Explain in a short essay.

Accepted Answer

The success of the policy to increase tu...

Question 13

Price elasticity of demand is the responsiveness of quantity demanded to changes in price.

Accepted Answer

A) True 
 B)False

Question 14

Use the following for questions 108-115.
Exhibit: The Demand for Bungalow Bob's Bagels
 
-(Exhibit: The Demand for Bungalow Bob's Bagels)  Total revenue decreases if the price ________ from ________.

Accepted Answer

A)   decreases; $0.40 to $0.30
B)   decreases; $0.60 to $0.50
C)   increases; $0.30 to $0.40
D)   increases; $0.50 to $0.60

Question 15

Although in most cases the price elasticity of labor supply is ________ , for some individuals it may be ________ .

Accepted Answer

A)   negative; zero
B)   negative; positive
C)   positive; negative
D)   zero; negative

Question 16

The ratio of the percentage change in the quantity demanded to the percentage change in price, all other things unchanged, is:

Accepted Answer

A)   price elasticity of demand.
B)   quantity elasticity of demand.
C)   income elasticity of demand.
D)   cross price elasticity of demand.

Question 17

Use the following to answer question(s) : Demand for Shirts
 
-(Exhibit: Demand for Shirts)  The price elasticity of demand for the segment DE is:

Accepted Answer

A)   greater than 1 (absolute value) .
B)   -1.
C)   -0.7.
D)   -0.3.

Question 18

Price elasticity of demand is computed as the arc elasticity by:

Accepted Answer

A)   dividing the slope of the demand curve by the average value of each variable between two points.
B)   dividing the slope of the demand curve by the average value of each variable at one point.
C)   calculating percentage changes relative to the value of one variable at one point.
D)   calculating percentage changes relative to the average value of each variable between two points.

Question 19

Elasticity is:

Accepted Answer

A)   the change in a dependent variable divided by the change in an independent variable.
B)   the ratio of the percentage change in a dependent variable to the percentage change in an independent variable.
C)   the price of a good divided by its quantity.
D)   the quantity of a good divided by its price.

Question 20

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

Accepted Answer

A)   price inelastic.
B)   price elastic.
C)   unit price elastic.
D)   horizontal.

Exam 5: Elasticity: a Measure of Response

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

Correct AnswerverifiedShow Answer

Use the following to answer question(s) : -(Exhibit: Demand and Price Elasticity 1) What is the price elasticity of demand between $2.00 and $1.75?

Correct AnswerverifiedShow Answer

Use the following for questions 108-115. Exhibit: The Demand for Bungalow Bob's Bagels -(Exhibit: The Demand for Bungalow Bob's Bagels) Total revenue remains unchanged if the price ________ from ________.

Correct AnswerverifiedShow Answer

Use the following to answer question(s) : Demand and Price Elasticity 2 -(Exhibit: Demand and Price Elasticity 2) The price elasticity of demand between points D and E is:

Correct AnswerverifiedShow Answer

Use the following for questions 108-115. Exhibit: The Demand for Bungalow Bob's Bagels -(Exhibit: The Demand for Bungalow Bob's Bagels) Total revenue decreases if the price ________ from ________.

Correct AnswerverifiedShow Answer

Elasticity is:

Correct AnswerverifiedShow Answer

The Case in Point on Child Labor in Pakistan indicated that the wage elasticity for girls was _____ indicating that the labor supply curve was _____.

Correct AnswerverifiedShow Answer

To say that two goods are unrelated, their cross price elasticities of demand should be:

Correct AnswerverifiedShow Answer

Use the following to answer question(s) : Demand for Shirts -(Exhibit: Demand for Shirts) The price elasticity of demand for the segment DE is:

Correct AnswerverifiedShow Answer

Price elasticity of demand is computed as the arc elasticity by:

Correct AnswerverifiedShow Answer

When price goes down, the quantity demanded goes up.Price elasticity measures:

Correct AnswerverifiedShow Answer

If the president of a university decides to increase tuition in order to cover the increase in operating costs, do you think this policy would succeed? Why or why not? Explain in a short essay.

Correct AnswerAnswered by ExamLex AIThe success of the policy to increase tu...View AnswerShow Answer

The ratio of the percentage change in the quantity demanded to the percentage change in price, all other things unchanged, is:

Correct AnswerverifiedShow Answer

Supply curves tend to be more ________ the greater the time period facing the producer.

Correct AnswerverifiedShow Answer

Although in most cases the price elasticity of labor supply is ________ , for some individuals it may be ________ .

Correct AnswerverifiedShow Answer

Suppose at a price of $10 the quantity demanded is 100.When price falls to $8, the quantity demanded increases to 130.The price elasticity of demand between the prices of $10 and $8 is approximately:

Correct AnswerverifiedShow Answer

A linear demand curve will have absolute values of the coefficient of price elasticity that:

Correct AnswerverifiedShow Answer

Use the following for questions 128-130. Exhibit: Nonlinear Demand Curve -(Exhibit: Nonlinear Demand Curve) The values for quantity demanded along this nonlinear demand curve are given by the formula Q = 24/P.For this curve:

Correct AnswerverifiedShow Answer

Price elasticity of demand is the responsiveness of quantity demanded to changes in price.

Correct AnswerverifiedShow Answer

Use the following for questions 116-119. Exhibit: The Demand for Macintosh Computers -(Exhibit: Demand for Macintosh Computers) The seller's total revenue at point S equals the:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Use the following for questions 108-115. Exhibit: The Demand for Bungalow Bob's Bagels -(Exhibit: The Demand for Bungalow Bob's Bagels) Total revenue remains unchanged if the price from .

Correct Answer
verified

Correct Answer
verified

Use the following for questions 108-115. Exhibit: The Demand for Bungalow Bob's Bagels -(Exhibit: The Demand for Bungalow Bob's Bagels) Total revenue decreases if the price from .

Correct Answer
verified

Correct Answer
verified

The Case in Point on Child Labor in Pakistan indicated that the wage elasticity for girls was _ indicating that the labor supply curve was _.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
Answered by ExamLex AI
The success of the policy to increase tu...
View Answer

Correct Answer
verified

Correct Answer
verified

Although in most cases the price elasticity of labor supply is , for some individuals it may be .

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified