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- 1. Multiple ChoiceDemand is unit elastic if it is less than 1.0TrueFalse
- 2. Multiple ChoiceDemand is almost always more elastic at higher prices and less elastic at lower prices.TrueFalse
- 3. Multiple ChoiceSuppose that elasticity of demand of socks is 0.7. If the price of socks is reduced by 10%, how will sales be effected?sales will grow by more than 10%Sales will grow by 10%Sales will grow by less than 10%Sales will decrease by 10%
- 4. Multiple ChoiceThe formula for calculating elasticity of demand is:The % change in price over the % change in quantity demandedThe % change in quantity demanded over the % change in priceThe change in price over the change in quantity demanedThe change in quantity demanded over the change in price
- 5. Multiple ChoiceThe elasticity of demand for tissues is 0.66. This means the demand for tissues iselasticunit elasticinelasticreally expensive
- 6. Multiple Choice
The desire to have some good or service and the ability to pay for it
supply
equilibrium
demand
quantity demanded
- 7. Multiple Choice
Which of these best describes the law of demand?
if prices go up, quantity demanded will fall and if prices go down, quantity demanded will go up
if prices go up, quantity demanded will also go up and if prices go down, quantity demanded will also go down
there is no law of demand, each situation is unique and demand and prices cannot be predicted
prices will go up for certain goods when quantity demanded goes up and vice versa
- 8. Multiple Choice
A change in the price of a good causes people to buy more or less of an item. This best describes the concept of
the demand curve
change in quantity demanded
change in demand
elasticity
- 9. Multiple Choice
Elasticity refers to
how producers of goods and services react to price changes
how consumers of goods and services react to price changes
how far a supply of scarce goods can be stretched
how often the price of a good or service changes when quantity demanded changes
- 10. Multiple Choice
Water has seen an increase in demand 8% this summer, while the price has decreased 12%
1.5 inelastic
1.5 elastic
.67 inelastic
.67 elastic
- 11. Multiple Choice
Wheat has seen a decrease in demand of 5%, while the price has increased 7%
1.4 inelastic
1.4 elastic
.71 inelastic
.71 elastic
- 12. Multiple ChoiceDemand is almost always more elastic at higher prices and less elastic at lower prices.TrueFalse
- Answer choicesTagsAnswer choicesTags