econ 102

A perfectly inelastic demand curve graphs as a horizontal straight line.

false

If a five percent price increase leads to a twenty percent increase in the quantity supplied, the elasticity of supply would be 0.25.

false

If a product has a large number of good substitutes, the demand for that product is probably inelastic.

false

If the cross-price elasticity for products X and Y is found to be -1.8, the products are substitutes to each other.

false

Supply tends to be more elastic in the short run than in the long run.

false

A perfectly elastic demand curve graphs as a horizontal straight line.

true

If a ten percent price reduction causes the quantity demanded to expand by twenty-five percent, demand must be elastic.

true

If demand is perfectly inelastic, the elasticity of demand will be equal to zero.

true

If supply were perfectly inelastic, the supply curve would be a vertical straight line.

true

If the cross-price elasticity for between products X and Y is found to be -1.8, the products are complementary goods.

true

If the elasticity of demand for Gizmos is 2, a twenty percent price hike would lead to a forty percent decrease in the quantity demanded.

true

If the income elasticity for product X is found to be -1.8, the product is an inferior good.

true

If the supply elasticity for new residential housing is 2, then a ten percent increase in the price of new housing would lead to a twenty percent increase in the quantity of new homes.

true