Question 1

Demand tends to be more elastic:

Accepted Answer

A)  when price is high and more inelastic when price is low.
B)  when price is low and more inelastic when price is high.
C)  when the demand is perfectly inelastic.
D)  the higher the quantity demanded.

Question 2

A good whose demand is unitary elastic refers to:

Accepted Answer

A)  one in which the absolute value of the percentage change in the quantity demanded exactly equals the absolute value of the corresponding percentage change in price.
B)  one in which the absolute value of the percentage change in quantity exactly equals one.
C)  one in which the absolute value of the percentage change in price exactly equals one.
D)  one in which both the absolute value of the percentage change in quantity demanded and the absolute value of the corresponding percentage change in price equals one.

Question 3

A rare coin dealer is likely to have a _______________ price elasticity of supply than a coffee shop due to ____________________.

Accepted Answer

A)  more elastic;the availability of inputs
B)  less elastic;the availability of inputs
C)  more elastic;a longer adjustment time
D)  more elastic;a shorter adjustment time

Question 4

A perfectly elastic demand is one in which:

Accepted Answer

A)  the demand curve is perfectly vertical.
B)  the demand curve is perfectly horizontal.
C)  measured elasticity is exactly 1.
D)  the response to a change in price is immediate.

Question 5

How much the demand for one good changes in response to a change in the price of a different good is measured by:

Accepted Answer

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

Question 6

A tavern is likely to have a ______________________ price elasticity of supply than an antiques dealer due to ______________________.

Accepted Answer

A)  more elastic;availability of inputs
B)  less elastic;availability of inputs
C)  less elastic;a longer adjustment time
D)  less elastic;a shorter adjustment time

Question 7

Many say that there is no substitute for a real diamond.This would imply that diamonds:

Accepted Answer

A)  are price elastic.
B)  are price inelastic.
C)  are unit elastic.
D)  are not a sustainable market.

Question 8

Elasticity along a demand curve:

Accepted Answer

A)  is constant if the demand curve is linear.
B)  changes only when the demand curve is bowed out.
C)  changes along any demand curve.
D)  changes only when the demand curve is bowed in.

Question 9

The resulting change in the quantity of gas demanded of increasing prices over the last decade:

Accepted Answer

A)  has been more elastic than it has been in the last six months.
B)  has been less elastic than it has been in the last six months.
C)  has been relatively the same over that time period.
D)  has become a non-issue for people now that they are used to high gas prices.

Question 10

Ray just got a raise,and decided to splurge on a fancy dinner to celebrate.The change to Ray's demand for fancy dinners could be captured by the:

Accepted Answer

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

Question 11

Assuming elasticity is reported in absolute value,a unit elastic good:

Accepted Answer

A)  has a measured elasticity of greater than zero.
B)  has a measured elasticity of greater than one.
C)  has a measured elasticity of less than one.
D)  has a measured elasticity of exactly one.

Question 12

A good that has an income elasticity of 2.3 is:

Accepted Answer

A)  a luxury good.
B)  an inferior good.
C)  a necessity good.
D)  a complement good.

Question 13

Income elasticity will be positive for:

Accepted Answer

A)  all normal goods.
B)  all inferior goods.
C)  only necessities.
D)  only luxury goods with substitutes.

Question 14

If a good has an income elasticity of 1.83,which of the following can be said about it?

Accepted Answer

A)  It is a normal good,and a necessity.
B)  It is an inferior good,and a necessity.
C)  The good probably has a lot of close substitutes available.
D)  None of these statements is true.

Question 15

Markers are _______________________ than Sharpies because ____________________.

Accepted Answer

A)  less price elastic;it is a smaller portion of one's income
B)  more price elastic;it is a smaller portion of one's income
C)  less price elastic;the scope of the market is more broadly defined
D)  more price elastic;the scope of the market is more broadly defined

Question 16

Dolls are __________________ than Barbie dolls because ___________________.

Accepted Answer

A)  less price elastic;the scope of the market is more broadly defined
B)  more price elastic;the scope of the market is more broadly defined
C)  less price elastic;they have more available substitutes
D)  more price elastic;they have more available substitutes

Question 17

When a small percentage change in price causes a large percentage change in the quantity demanded,we say that they have a:

Accepted Answer

A)  highly elastic demand.
B)  highly inelastic demand.
C)  low magnitude of response.
D)  high magnitude of response.

Question 18

A pack of gum is ______________ than a steak because _______________.

Accepted Answer

A)  less price elastic;it is a smaller portion of one's income
B)  more price elastic;it is a smaller portion of one's income
C)  less price elastic;they are more of a luxury good
D)  more price elastic;they are more of a luxury good

Question 19

Different measurements of elasticity include:

Accepted Answer

A)  income elasticity of demand,income elasticity of supply.
B)  price elasticity of demand,price elasticity of supply.
C)  cross-price elasticity of demand,income elasticity of supply.
D)  preference elasticity of demand,cross-price elasticity of supply.

Question 20

If total revenue increases as a result of a price increase:

Accepted Answer

A)  the good is price elastic.
B)  the good is price inelastic.
C)  the good is price unit elastic.
D)  Any of these could be true.

Exam 4: Elasticity

A good whose demand is unitary elastic refers to:

Correct AnswerverifiedShow Answer

A rare coin dealer is likely to have a _______________ price elasticity of supply than a coffee shop due to ____________________.

Correct AnswerverifiedShow Answer

If a good has an income elasticity of 1.83,which of the following can be said about it?

Correct AnswerverifiedShow Answer

When a small percentage change in price causes a large percentage change in the quantity demanded,we say that they have a:

Correct AnswerverifiedShow Answer

If total revenue increases as a result of a price increase:

Correct AnswerverifiedShow Answer

A perfectly elastic demand is one in which:

Correct AnswerverifiedShow Answer

A pack of gum is ______________ than a steak because _______________.

Correct AnswerverifiedShow Answer

Assuming elasticity is reported in absolute value,a unit elastic good:

Correct AnswerverifiedShow Answer

Demand tends to be more elastic:

Correct AnswerverifiedShow Answer

Elasticity along a demand curve:

Correct AnswerverifiedShow Answer

A good that has an income elasticity of 2.3 is:

Correct AnswerverifiedShow Answer

Income elasticity will be positive for:

Correct AnswerverifiedShow Answer

Many say that there is no substitute for a real diamond.This would imply that diamonds:

Correct AnswerverifiedShow Answer

Different measurements of elasticity include:

Correct AnswerverifiedShow Answer

Dolls are __________________ than Barbie dolls because ___________________.

Correct AnswerverifiedShow Answer

Markers are _______________________ than Sharpies because ____________________.

Correct AnswerverifiedShow Answer

How much the demand for one good changes in response to a change in the price of a different good is measured by:

Correct AnswerverifiedShow Answer

A tavern is likely to have a ______________________ price elasticity of supply than an antiques dealer due to ______________________.

Correct AnswerverifiedShow Answer

Ray just got a raise,and decided to splurge on a fancy dinner to celebrate.The change to Ray's demand for fancy dinners could be captured by the:

Correct AnswerverifiedShow Answer

The resulting change in the quantity of gas demanded of increasing prices over the last decade:

Correct AnswerverifiedShow Answer

Correct Answer
verified

A rare coin dealer is likely to have a _ price elasticity of supply than a coffee shop due to ______.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

A pack of gum is than a steak because _.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Dolls are than Barbie dolls because _.

Correct Answer
verified

Markers are ___ than Sharpies because .

Correct Answer
verified

Correct Answer
verified

A tavern is likely to have a price elasticity of supply than an antiques dealer due to .

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified