Chapter 5

In perfectly competitive markets, if you raise your price by even a small amount, the quantity demanded of your products _____. Please choose the correct answer from the following choices, and then select the submit answer button. Answer choicesdecreases slightlyremains relatively constantgoes to zeroincreases slightly

goes to zero (L)

The income elasticity of demand measures: Please choose the correct answer from the following choices, and then select the submit answer button. Answer choiceshow responsive your demand for a good is to changes in your income.how responsive the demand for one good is to price changes of another.the ratio of percent change in the quantity supplied to the percent change in the price.the total amount you receive from buyers, which equals price times quantity.

how responsive your demand for a good is to changes in your income.

When buyers are not very responsive to price changes, economists describe their demand as _____. Please choose the correct answer from the following choices, and then select the submit answer button. Answer choicesstaticelasticinelasticflexible

inelastic

The price elasticity of supply may be _____ in the short run, but it is typically _____ over the long run. Please choose the correct answer from the following choices, and then select the submit answer button. Answer choicesquite small; much smallerquite large; much smallerquite small; much largerquite large; much larger

quite small, much larger

If cutting the price of frozen pizza by 30% leads to an increase in the quantity demanded by 6%, what is the absolute value of the price elasticity of demand for frozen pizza? Please choose the correct answer from the following choices, and then select the submit answer button. Answer choices−0.20.2−55

.2

Calculate the absolute value of the price elasticity of demand if the percentage change in price is 67% and the percentage change in quantity is −55%. Please choose the correct answer from the following choices, and then select the submit answer button. Answer choices1.22−0.8−1.220.8

.8

If the price of tacos rises by 30%, and the quantity supplied rises by 3%, what is the price elasticity of supply of tacos? Please choose the correct answer from the following choices, and then select the submit answer button. Answer choices0.1900.00110

0.1

If increasing the price of eggs by 10% leads to a decrease in the quantity demanded by 10%, what is the absolute value of the price elasticity of demand for eggs? Please choose the correct answer from the following choices, and then select the submit answer button. Answer choices1.0−0.50.5−1.0

1.0

When Uber increased prices by 80% for a certain place and specific time it led to a 100% increase in Uber drivers supplying rides. Using the percent change in the price and the percent change in the quantity supplied, what is the price elasticity of supply for Uber rides? Please choose the correct answer from the following choices, and then select the submit answer button. Answer choices801.250.80.008

1.25

When the government increased the minimum wage by 50%, it led to a 75% increase in workers providing labor. Based on the information given, what is the price elasticity of supply for labor? Please choose the correct answer from the following choices, and then select the submit answer button. Answer choices0.670.0071.500.375

1.50

If increasing the price of watches by 6% leads to a decrease in the quantity demanded by 15%, what is the absolute value of the price elasticity of demand for watches? Please choose the correct answer from the following choices, and then select the submit answer button. Answer choices2.5−2.5−0.40.4

2.5

E-books are highly price-elastic. For every 1 copy of an e-book sold at $16.00, 1.75 copies would have been purchased if the price had been $10.00. If customers would buy 10,000 copies of a particular e-book when priced at $16.00, which price point produces lower revenue? Please choose the correct answer from the following choices, and then select the submit answer button. Answer choicesThe $16.00 price point yields $15,000 less in revenue than at $10.00.The $10.00 price point yields $175,000 in revenue.The $10.00 price point yields $15,000 less in revenue than at $16.00.The revenue from both price points would be the same.

The $16.00 price point yields $15,000 less in revenue than at $10.00.

When the price elasticity of supply is a positive number, changes in price lead to: Please choose the correct answer from the following choices, and then select the submit answer button. Answer choiceschanges in quantity in any direction along a supply curve.changes in quantity in the opposite direction along a supply curve.changes in quantity in the same direction along a supply curve.no changes in quantity along a supply curve.

changes in quantity in the same direction along a supply curve.

The price elasticity of _____ measures how responsive buyers are to _____. Please choose the correct answer from the following choices, and then select the submit answer button. Answer choicessupply; qualitydemand; qualitysupply; price changesdemand; price changes

demand; price changes