Elasticity
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- Economic Issues and ConceptsEconomic Theories,Data,and GraphsDemand,Supply,and PriceElasticityPrice Controls and Market EfficiencyConsumer BehaviourProducers in the Short RunProducers in the Long RunCompetitive MarketsMonopoly,cartels,and Price DiscriminationImperfect Competition and Strategic BehaviourEconomic Efficiency and Public PolicyHow Factor Markets WorkLabour Markets and Income InequalityInterest Rates and the Capital MarketMarket Failures and Government InterventionThe Economics of Environmental ProtectionTaxation and Public ExpenditureWhat Macroeconomics Is All AboutThe Measurement of National IncomeThe Simplest Short-Run Macro ModelAdding Government and Trade to the Simple Macro ModelOutput and Prices in the Short RunFrom the Short Run to the Long Run: The Adjustment of Factor PricesLong-Run Economic GrowthMoney and BankingMoney,Interest Rates,and Economic ActivityMonetary Policy in CanadaInflation and DisinflationUnemployment Fluctuations and the NairuGovernment Debt and DeficitsThe Gains From International TradeTrade PolicyExchange Rates and the Balance of Payments
Question 1
Free
Multiple Choice
The price elasticity of demand measures the responsiveness of
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quantity demanded to changes in the price.
the price to changes in quantity demanded.
demand to supply changes.
supply to demand changes.
equilibrium changes.
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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
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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.
nothing about their relative elasticities.
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Question 3
Free
Multiple Choice
When the percentage change in quantity demanded is greater than the percentage change in price that brought it about,demand is said to be
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zero elastic.
unelastic.
inelastic.
unit elastic.
elastic.
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Question 4
Free
Multiple Choice
When the percentage change in quantity demanded is less than the percentage change in price that brought it about,demand is said to be
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zero elastic.
unelastic.
inelastic.
unit elastic.
elastic.
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Question 5
Free
Multiple Choice
The formula for the price elasticity of demand for a commodity can be written as which of the following?
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Question 6
Multiple Choice
If demand is unit elastic at all prices,then the demand curve is
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a straight line.
a parabola.
a rectangular hyperbola.
upward sloping.
perfectly horizontal.
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Question 7
Multiple Choice
A demand curve that is the shape of a rectangular hyperbola
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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.
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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
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elastic.
inelastic.
unity.
positive.
not determinable from the information given.
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Question 9
Multiple Choice
If the price elasticity of demand is 0.5,then a 10% increase in price results in a
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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.
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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
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0.5.
1.0.
1.5.
2.0.
4.0.
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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
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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.
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Question 12
Multiple Choice
If the value of the price elasticity of demand is 0.6,demand is said to be
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elastic.
partially elastic.
inelastic.
partially inelastic.
somewhat inelastic.
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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
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0.6.
6.0.
1.97.
1.03.
impossible to compute unless we know the before and after prices.
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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
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1/3.
2/3.
1.
3/2.
2.
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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
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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.
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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
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1/3.
2/3.
1.
2.
3.
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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
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0.50.
0.71.
1.00.
1.40.
0.40.
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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
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1/3.
2/3.
1.
2.
3.
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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
Choose correct answer/s
0.5.
0.71.
1.00.
1.40.
0.40.
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Question 20
Multiple Choice
If the price elasticity of demand for some good is 2.7,a 10% increase in the price results in
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a 2.7% decrease in the quantity demanded.
a 2.7% increase in the quantity demanded.
a 27% increase in the quantity demanded.
a 27% decrease in the quantity demanded.
There is not enough information to answer this question.
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