answer all the questions
Question 1
1 pts
The formula for calculating the Price Elasticity of Demand is
(% change in quantity demanded)/(% change in price)
O % change in price)/(% change in quantity demanded)
Question 2
1 pts
The Price Elasticity of Demand tells us
How much more people will buy when the price increases
How sensitive the price is to a change in the quantity demanded
How sensitive buyers are to a change in price
How much less people will buy when the price decreases
Question 3
1 pts
If the Price Elasticity of Demand is greater than one (in absolute value) it means that
buyers are not sensitive to a change in price so will not buy a lot less when the price increases
buyers are sensitive to a change in price so will buy a lot less when the price increases
buyers don’t respond at all to a change in price
O buyers will not buy any if the price increases even a little
D
Question 4
1 pts
If the Price Elasticity of Demand is less than one (in absolute value) it means that
buyers are not sensitive to a change in price so will not buy a lot less when the price increases
buyers are sensitive to a change in price so will buy a lot less when the price increases
buyers don’t respond at all to a change in price
buyers will not buy any if the price increases even a little
Question 5
2 pts
a
a
Question 5
2 pts
What can you tell about the Price Elasticity of Demand if the slope of the demand curve is
somewhat flat? Select)
Indicating that buyers are [Select]
to a change in price.
Question 6
2 pts
What can you tell about the Price Elasticity of Demand if the slope of the demand curve is
somewhat steep (looks more like an “1”)? [Select)
Indicating that buyers are [Select]
to a change in price.
Question 7
4 pts
What will happen to Total Revenue if
Demand is elastic and the price increases
[ Choose
Demand is elastic and the price decreases
[ Choose
Demand is inelastic and the price increases
[Choose
Demand is inelastic and the price decreases
[Choose
Question 8
1 pts
The formula for calculating the Price Elasticity of Supply is
O % change in quantity supplied)/(% change in price)
O % change in price)/(% change in quantity supplied)
Question 9
1 pts
The Price Elasticity of Supply tells us
How much more sellers will sell when the price decreases
How sensitive the price is to a change in the quantity supplied
How sensitive sellers are to a change in price
How much less sellers will be willing to sell when the price increases
D
Question 10
1 pts
If the Price Elasticity of Supply is greater than one it means that
sellers are not sensitive to a change in price so will not be willing to sell a lot more when the price increases
sellers are sensitive to a change in price so will be willing to sell a lot more when the price increases
sellers don’t respond at all to a change in price
sellers will not sell any if the price decreases even a little
Question 11
1 pts
If the Price Elasticity of Supply is less than one it means that
sellers are not sensitive to a change in price so will not be willing to sell a lot more when the price increases
sellers are sensitive to a change in price so will be willing to sell a lot more when the price increases
0
sellers don’t respond at all to a change in price
sellers will not sell any if the price decreases even a little
Question 12
2 pts
What can you tell about the Price Elasticity of Supply if the slope of the supply curve is somewhat
flat? Select)
Indicating that sellers are
[E
[ Select)
to a change in price.
3
cu
Question 13
2 pts
What can you tell about the Price Elasticity of Supply if the slope of the supply curve is somewhat
steep (looks more like an “1”)? (Select]
Indicating that sellers are (Select)
to a change in price.
D
Question 14
1 pts
What is he formula for calculating the Income Elasticity of Demand?
O % change in income)/(% change in quantity demanded)
(% change in quantity demanded)/(% change in income)
Question 15
1 pts
The Income Elasticity of Demand tells us how responsive people are to a change in their income.
True
O False
ܝܘ
a
Question 16
2 pts
If the Income Elasticity of Demand is a positive number it means that the product is a(n)
Select)
good
because income and the quantity demanded move in the same direction. For example, people buy
more when their income (Select)
D
Question 17
2 pts
If the Income Elasticity of Demand is a negative number it means that the product is aln)
Select)
good
because income and the quantity demanded move in opposite directions. For example, people buy
more when their income Select)
D
Question 18
1 pts
a
Question 18
1 pts
What is the formula for calculating the Cross-Price Elasticity of Demand?
(% change in quantity demanded of Good Ay/(% change in price of Good B)
(% change in price of Good A/% change in quantity demanded of Good B)
Question 19
1 pts
The Cross-Price Elasticity of Demand tells us how much the quantity demanded of one good
responds to changes in the price of another good.
True
False
Question 20
2 pts
If the Cross-Price Elasticity of Demand is a positive number it means that the product is a(n)
Select)
good because the price of Good A and the quantity demanded of
Good B move in the same direction. For example, people buy more of Good A when the price of
Good B Select
w
a
Select
good because the price of Good A and the quantity demanded of
Good B move in the same direction. For example, people buy more of Good A when the price of
Good B (Select)
D
Question 21
2 pts
If the Cross-Price Elasticity of Demand is a negative number it means that the product is an)
Select)
good because the price of Good A and the quantity demanded of
Good B move in opposite directions. For example, people buy more of Good A when the price of
Good B Select
Question 22
1 pts
For all four of the elasticites that are discussed in the chapter, the % change in quantity will always
be in the numerator of the formula.
True
False
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