A) A wide variety of substitutes are available for the good.
B) The time period under consideration is short.
C) The good is a necessity.
D) The expenditure on the good is small relative to one's budget.
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A) infinity.
B) zero.
C) more than one.
D) equal to the absolute value of the slope of the demand curve.
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A) the demand for bottled water is inelastic in the price range considered.
B) the demand for bottled water is elastic in the price range considered.
C) the supply of bottled water is inelastic in the price range considered.
D) the supply of bottled water is elastic in the price range considered.
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A) the responsiveness of quantity demanded to changes in income.
B) how a consumer's purchasing power is affected by a change in the price of a product.
C) the percentage change in the price of a product divided by the percentage change in consumer income.
D) the income effect of a change in price.
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A) inelastic.
B) elastic.
C) unit-elastic.
D) perfectly inelastic.
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A) unit-elastic.
B) perfectly elastic.
C) relatively inelastic.
D) elastic.
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A) -0.66
B) 0.5
C) 1.5
D) 2
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A) cross-price elasticity; positive number
B) cross-price elasticity; negative number
C) price elasticity of demand; number greater than 1 (in absolute value)
D) price elasticity of demand; number less than 1 (in absolute value)
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A) port and chocolate cake as luxury items.
B) port and chocolate cake as necessities.
C) port and chocolate cake as complementary goods.
D) port and chocolate cake as substitutes to other desserts.
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A) 0.11
B) 0.37
C) 2.69
D) 9.33
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A) A 1 per cent decrease in the price of grapefruit juice leads to a 6 per cent increase in orange juice consumption.
B) A 6 per cent increase in the price of grapefruit juice leads to a 1 per cent increase in orange juice consumption.
C) If the price of grapefruit juice rises by $1, 6 more cartons of orange juice will be purchased.
D) The demand for orange juice is 6 times more than the demand for grapefruit juice.
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A) the supply of oil is very elastic and the demand for oil is very elastic over short periods of time.
B) the supply of oil is very inelastic and the demand for petrol is inelastic over short periods of time.
C) the supply of oil and the demand for oil shift to the right over short periods of time.
D) the supply of oil and the demand for oil are both perfectly elastic over short periods of time.
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A) Sales revenue falls.
B) Sales revenue rises.
C) Sales revenue remains unchanged.
D) It cannot be determined without information on prices.
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A) consumers will respond significantly to an increase in the quantity supplied of bicycles.
B) suppliers will increase the quantity supplied of bicycles, but not immediately.
C) suppliers face many substitutes for bicycles.
D) suppliers will respond significantly to changes in the price of bicycles.
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A) how a good's quantity demanded responds to change in the good's price.
B) how a good's quantity demanded responds to change in the price of another good.
C) how a good's quantity demanded responds to change in buyers' incomes.
D) how a good's quantity demanded responds to producers' incomes.
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A) If the price of a good is lowered and total revenue decreases, demand is elastic.
B) If the price of a good is raised and total revenue does not change, demand is perfectly elastic.
C) If the price of a good is raised and total revenue increases, demand is inelastic.
D) If the price of a good is lowered and total revenue increases, demand is inelastic.
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A) is perfectly elastic.
B) is perfectly inelastic.
C) is impossible.
D) has an elasticity equal to 1.
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