Ch 4
If quantity demanded goes down by 3 percent when price rises by 6 percent, then the price elasticity of demand is: Multiple choice question. 3 0.5 2 9
.5
In the figure to the right, the price elasticity of supply is Multiple choice question. infinite. one. zero.
0
If quantity demanded goes up by 10 percent when price falls by 2 percent, then the price elasticity of demand is: Multiple choice question. 5 12 8 2
5
Total expenditure equals: Multiple select question. P×Q. buyer's surplus. total revenue.
PQ; Total Revenue
If the owners of a nearby restaurant decrease the price of their food, then their total revenue Multiple choice question. could increase since more people may be willing to eat there. will decrease since the restaurant is charging less.
could increase since more people may be willing to eat there.
Which of the following goods has the lowest price elasticity of demand? Multiple choice question. beer public transportation furniture food
food
If the price elasticity of demand for beer is 1.19, and the price of beer goes up by 1 percent, then the quantity of beer demanded will _____. Multiple choice question. go up by 119 percent go down by 1.19 percent go up by 1.19 percent go down by 119 percent
go down by 1.19%
If the price elasticity of demand for coffee is 0.25, and the price of coffee goes down by 1 percent, then the quantity of coffee demanded will Multiple choice question. go down by 25 percent. go up by 25 percent. go up by 0.25 percent. go down by 0.25 percent.
go up by 25 percent
Answer Mode Multiple Choice QuestionYour Answer incorrect Which of the following goods has the highest price elasticity of demand? Multiple choice question. green peas medical care tobacco coffee
green peas
Given that there are many different kinds of cereal that people can buy, the price elasticity of demand for any particular brand of cereal is likely to be relatively _____. Multiple choice question. high low
high
If the demand for first-class airline tickets is inelastic with respect to price, then if the price of first-class airline tickets increases, then total expenditure will _____. Multiple choice question. decrease increase stay the same
increase
If the demand for first-class airline tickets is inelastic with respect to price, then if the price of first-class airline tickets increases, then total expenditure will _____. Multiple choice question. stay the same decrease increase
increase
If the price elasticity of demand is greater than 1 and price decreases, then total expenditure will Multiple choice question. decrease. stay the same. increase.
increase
If demand is perfectly elastic with respect to price, then the price elasticity of demand is _____. Multiple choice question. infinite one zero
infinite
If demand is perfectly elastic with respect to price, then the price elasticity of demand is _____. Multiple choice question. zero one infinite
infinite
Given that most people spend a relatively small share of their budget on pencils, we would expect the elasticity of demand for pencils to be relatively _____. Multiple choice question. low high
low
Suppose a local politician proposes that the price of lottery tickets be cut in half in order to reduce the total amount that people spend on lottery tickets. This plan will Multiple choice question. surely be effective since total expenditure obviously will fall if lottery tickets are cheaper. only be effective if the demand for lottery tickets is elastic with respect to price. only be effective if the demand for lottery tickets is inelastic with respect to price.
only be effective if the demand for lottery tickets is inelastic with respect to price.
The price elasticity of demand is Multiple choice question. the change in quantity demanded divided by the change in price. the change in quantity demanded that results from a 1 percent change in price. the percentage change in quantity demanded that results from a one dollar change in price. the percentage change in quantity demanded that results from a 1 percent change in price.
the percentage change in quantity demanded that results from a 1 percent change in price.
The cross-price elasticity of demand for snowboards with respect to the price of skis is Multiple choice question. the change in the quantity of snowboards demanded in response to a 1 dollar change in the price of skis. the change in the quantity of snowboards demanded in response to a 1 percent change in the price of skis. the percentage change in the quantity of snowboards demanded in response to a 1 percent change in the price of skis.
the percentage change in the quantity of snowboards demanded in response to a 1 percent change in the price of skis.
If the price elasticity of demand is infinite, then demand is Multiple choice question. perfectly inelastic. unit elastic. perfectly elastic.
perfectly elastic
Suppose your cousin makes cutting boards that he sells on Etsy.com. Can he increase his total revenue by increasing the price of his cutting boards? Multiple choice question. Yes, but only if the price elasticity of demand is less than one. Yes, but only if the price elasticity of demand is greater than one. Yes, if he charges more his revenue obviously will increase.
Yes, but only if the price elasticity of demand is less than one.
Suppose your cousin makes cutting boards that he sells on Etsy.com. Can he increase his total revenue by increasing the price of his cutting boards? Multiple choice question. Yes, if he charges more his revenue obviously will increase. Yes, but only if the price elasticity of demand is less than one. Yes, but only if the price elasticity of demand is greater than one.
Yes, but only if the price elasticity of demand is less than one.
Low-income families spend a greater share of their budget on electricity than do high-income families. Thus, we would expect the price elasticity of demand for electricity to be _____ for low-income families than for high-income families. Multiple choice question. higher lower
higher
If a store has a 10% off everything sale, then the store's total revenue will fall Multiple choice question. if the demand for the store's products is elastic with respect to price. if the demand for the store's products is inelastic with respect to price. no matter what because everything in the store is cheaper.
if the demand for the store's products is inelastic with respect to price.
If a store has a 10% off everything sale, then the store's total revenue will fall Multiple choice question. if the demand for the store's products is inelastic with respect to price. no matter what because everything in the store is cheaper. if the demand for the store's products is elastic with respect to price.
if the demand for the store's products is inelastic with respect to price.
If the price of lawnmowers goes up by 9 percent and the quantity of lawnmowers demanded falls by 5 percent, then the total expenditure on lawnmowers will Multiple choice question. remain unchanged. decrease. increase.
increase
The elasticity of demand for a good that has very few substitutes is usually relatively _____. Multiple choice question. low high
low
When the price elasticity of demand is greater than 1, changes in price and changes in total expenditure Multiple choice question. move in the same direction. move in opposite directions. cannot be determined.
move in opposite directions
The percentage change in quantity demanded that results from a 1 percent change in price is the Multiple choice question. price elasticity of demand. cross-price elasticity of demand. slope of the demand curve.
price elasticity of demand
The income elasticity of demand for guitars is Multiple choice question. the change in the quantity of guitars demanded in response to a 1 percent change in income. the percentage by which the quantity of guitars demanded changes in response to a 1 dollar change in income. the percentage by which the quantity of guitars demanded changes in response to a 1 percent change in income.
the percentage by which the quantity of guitars demanded changes in response to a 1 percent change in income.
The income elasticity of demand for potatoes is Multiple choice question. the percentage by which the quantity of potatoes demanded changes in response to a 1 percent change in income. the percentage by which the quantity of potatoes demanded changes in response to a 1 dollar change in income. the change in the quantity of potatoes demanded in response to a 1 percent change in income.
the percentage by which the quantity of potatoes demanded changes in response to a 1 percent change in income.
Given that there are only so many operations the world's top brain surgeon can perform every year, the price elasticity of supply for his or her services is likely to be Multiple choice question. very high. equal to one. very low.
very low
