Question 1

As the price elasticity of supply approaches infinity,very small changes in price lead to

Accepted Answer

A)   very large changes in quantity supplied.
B)   very small changes in quantity supplied.
C)   no change in quantity supplied.
D)   None of the above is correct.

Question 2

Which of the following is likely to have the most price elastic demand?

Accepted Answer

A)   clothing
B)   blue jeans
C)   Tommy Hilfiger jeans
D)   All three would have the same elasticity of demand because they are all related.

Question 3

When the price of an eBook is $15.00,the quantity demanded is 400 eBooks per day.When the price falls to $10.00,the quantity demanded increases to 700.Given this information and using the midpoint method,we know that the demand for eBooks is

Accepted Answer

A)   inelastic.
B)   elastic.
C)   unit elastic.
D)   perfectly inelastic.

Question 4

If the price elasticity of supply is 1.5,and a price increase led to a 1.8% increase in quantity supplied,then the price increase is about

Accepted Answer

A)   0.67%.
B)   0.83%.
C)   1.20%.
D)   2.70%.

Exam 5: Elasticity and Its Application

If the price elasticity of supply is 1.5,and a price increase led to a 1.8% increase in quantity supplied,then the price increase is about

Correct Answer
verified

When the price of an eBook is $15.00,the quantity demanded is 400 eBooks per day.When the price falls to $10.00,the quantity demanded increases to 700.Given this information and using the midpoint method,we know that the demand for eBooks is

Correct Answer
verified

As the price elasticity of supply approaches infinity,very small changes in price lead to

Correct Answer
verified

Which of the following is likely to have the most price elastic demand?

Correct Answer
verified

Exam 5: Elasticity and Its Application

If the price elasticity of supply is 1.5,and a price increase led to a 1.8% increase in quantity supplied,then the price increase is about

Correct AnswerverifiedShow Answer

When the price of an eBook is $15.00,the quantity demanded is 400 eBooks per day.When the price falls to $10.00,the quantity demanded increases to 700.Given this information and using the midpoint method,we know that the demand for eBooks is

Correct AnswerverifiedShow Answer

As the price elasticity of supply approaches infinity,very small changes in price lead to

Correct AnswerverifiedShow Answer

Which of the following is likely to have the most price elastic demand?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified