Econ 1: Chapter 6 (Part two)
D
A leftward shift in the supply curve of product X will increase equilibrium price to a greater extent the: A. More elastic the supply curve B. Larger the elasticity of demand coefficient C. More elastic the demand for the product D. More inelastic the demand for the product
D
A perfectly inelastic demand curve: A. Has a price elasticity coefficient greater than unity B. Has a price elasticity ceoffifient of unity throughout C. Graphs as a line parallel to the vertical axis D. Graphs as a line parallel to the horizontal axis
B
If the demand for bacon is relatively elastic, a 10 percent decline in the price of bacon will: A. Decrease the amount demanded by more than 10 percent B. Increase the amount demanded by more than 10 percent C. Decrease the amount demanded by less than 10 percent D. Increase the amount demanded by less than 10 percent
B
If the demand for product X is inelastic, a 4 percent increase in the price of X will: A. Decrease the quantity of X demanded by more than 4 percent B. Decrease the quantity of X demanded by less than 4 percent C. Increase the quantity of X demanded by more than 4 percent D. Increase the quantity of X demanded by less than 4 percent
C
If the price elasticity of demand for gasoline is 0.20: A. The demand for gasoline is linear B. A rise in the price of gasoline will reduce total revenue C. A 10 percent rise in the price of gasoline will decrease the amount purchased by 2 percent D. A 10 percent fall in the price of gasoline will increase the amount purchased by 20 percent
A
If the price of hand calculators falls from $10 to $9 and, as a result, the quantity demanded increases from 100 to 125, then: A. Demand is elastic B. Demand is inelastic C. Demand is of unit elasticity D. Not enough info is given
A
In which price range of the accompanying demand schedule is demand elastic? A. $4-$3 B. $3-$2 C. $2-$1 D. Below $1
C
Suppose that as the price of Y falls from $2.00 to $1.90 the quantity of Y demanded increases from 110 to 118. Then the price elasticity of demand is: A. 4.00 B. 2.09 C. 1.37 D. 3.94
B
The basic formula for the price elasticity of demand coefficient is: A. Absolute decline in quantity demanded/absolute increase in price B. Percentage change in quantity demanded/percentage change in price C. Absolute decline in price/absolute increase in quantity demanded D. Percentage change in price/percentage change in quantity demanded.
C
The price elasticity of demand: A. Is infinitely large for a perfectly inelastic demand curve B. Tends to be inelastic in high-price ranges and elastic in low-price ranges C. Tends to be elastic in high-price ranges and inelastic in low-price ranges D. Is the same at each price-quantity combo on a stable demand curve
