# Elasticity This question bank verified by Studydeets
All Questions
Filter by:
Question 1
Free
Multiple Choice

## The price elasticity of demand measures the responsiveness of

quantity demanded to changes in the price.

the price to changes in quantity demanded.

demand to supply changes.

supply to demand changes.

equilibrium changes.

Question 2
Free
Multiple Choice

## Consider two demand curves and the same price change for both.If the resulting percentage change in quantity demanded is greater for one (D1)than the other (D2),we can conclude

that D1 is inelastic and D2 is elastic.

that D1 is elastic and D2 is inelastic.

that D2 is more elastic than D1.

that D1 is more elastic than D2.

Question 3
Free
Multiple Choice

zero elastic.

unelastic.

inelastic.

unit elastic.

elastic.

Question 4
Free
Multiple Choice

zero elastic.

unelastic.

inelastic.

unit elastic.

elastic.

Question 5
Free
Multiple Choice

## The formula for the price elasticity of demand for a commodity can be written as which of the following?     Question 6
Multiple Choice

## If demand is unit elastic at all prices,then the demand curve is

a straight line.
a parabola.
a rectangular hyperbola.
upward sloping.
perfectly horizontal.
To unlock the question
Question 7
Multiple Choice

## A demand curve that is the shape of a rectangular hyperbola

is elastic over the whole curve.
is inelastic over the whole curve.
is unit elastic over the whole curve.
has the same elasticity as a straight-line demand curve.
has an elasticity of 100% over the whole curve.
To unlock the question
Question 8
Multiple Choice

## If household income increases by 50% and desired household expenditure on vacation travel increases by 15%,the price elasticity of demand for vacation travel is

elastic.
inelastic.
unity.
positive.
not determinable from the information given.
To unlock the question
Question 9
Multiple Choice

## If the price elasticity of demand is 0.5,then a 10% increase in price results in a

50% reduction in quantity demanded.
5% increase in quantity demanded.
5% decrease in total revenues.
5% decrease in quantity demanded.
0.5% decrease in quantity demanded.
To unlock the question
Question 10
Multiple Choice

## Suppose that the quantity of a good demanded rises from 90 units to 110 units when the price falls from \$1.20 to 80 cents per unit.The price elasticity of demand for this product is

0.5.
1.0.
1.5.
2.0.
4.0.
To unlock the question
Question 11
Multiple Choice

## Suppose the price elasticity of demand for some good is 1.4.A 10% increase in the price of the good results in

a 1.4% decrease in the quantity demanded.
a 1.4% increase in the quantity demanded.
a 14% increase in the quantity demanded.
a 14% decrease in the quantity demanded.
There is not enough information to answer this question.
To unlock the question
Question 12
Multiple Choice

## If the value of the price elasticity of demand is 0.6,demand is said to be

elastic.
partially elastic.
inelastic.
partially inelastic.
somewhat inelastic.
To unlock the question
Question 13
Multiple Choice

## Suppose that the quantity of lemonade demanded falls from 103 000 litres per week to 97 000 litres per week as a result of a 10% increase in its price.The price elasticity of demand for lemonade is therefore

0.6.
6.0.
1.97.
1.03.
impossible to compute unless we know the before and after prices.
To unlock the question
Question 14
Multiple Choice

## Suppose that the quantity demanded of skipping ropes rises from 1250 to 1750 units when the price falls from \$1.25 to \$0.75 per unit.The price elasticity of demand for this product is

1/3.
2/3.
1.
3/2.
2.
To unlock the question
Question 15
Multiple Choice

## The table below shows the demand schedule for museum admissions in a small city. TABLE 4-1-Refer to Table 4-1.The elasticity of demand for museum admissions is

greater at higher prices than at lower prices.
elastic at all points on the demand curve.
inelastic at all points on the demand curve.
greater at lower prices than at higher prices.
constant at all points on the demand curve.
To unlock the question
Question 16
Multiple Choice

## The table below shows the demand schedule for museum admissions in a small city. TABLE 4-1-Refer to Table 4-1.Between the prices of \$8 and \$10,the elasticity of demand is

1/3.
2/3.
1.
2.
3.
To unlock the question
Question 17
Multiple Choice

## The table below shows the demand schedule for museum admissions in a small city. TABLE 4-1-Refer to Table 4-1.Between the prices of \$4 and \$6 the price elasticity of demand is

0.50.
0.71.
1.00.
1.40.
0.40.
To unlock the question
Question 18
Multiple Choice

## The table below shows the demand schedule for museum admissions in a small city. TABLE 4-1-Refer to Table 4-1.Between the prices of \$2 and \$4 the price elasticity of demand is

1/3.
2/3.
1.
2.
3.
To unlock the question
Question 19
Multiple Choice

## The table below shows the demand schedule for museum admissions in a small city. TABLE 4-1-Refer to Table 4-1.Between the prices of \$8 and \$6 the price elasticity of demand is

0.5.
0.71.
1.00.
1.40.
0.40.
To unlock the question
Question 20
Multiple Choice