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- 1. Multiple ChoiceAn increase in the number of consumers can causethe demand curve to shift leftthe demand curve to shift rightthe demand curve to shift updiminishing returns
- 2. Multiple Choicewhen consumers have a need for a product that is urgentthe demand curve is inelasticthe demand curve is elasticthe demand curve is complementarythe demand curve is unit demand
- 3. Multiple ChoiceWhen replacing a certain item with with a less costly item is an example ofthe substitution effectthe income effectdemand elasticitycomplements
- 4. Multiple ChoiceA city's transit authority increases the price of subway and bus tickets from $1.25 to $1.50. If the demand for these tickets is price inelastic, 1) the # of people riding buses & subways AND 2) the city's revenues will change in which way (respectively)?1) Increase; 2)Increase1) Decrease; 2) Increase1) Decrease; 2) Decrease1) No Change; 2) Increase
- 5. Multiple ChoiceDemand is unit elastic if it is less than 1.0TrueFalse
- 6. Multiple ChoiceIf the price on a product goes up the quantity demanded will go down. This follows the economic theory of:Law of Demandelasticityincome effectNone of the above
- 7. 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
- 8. Multiple ChoiceThe elasticity of demand for tissues is 0.66. This means the demand for tissues iselasticunit elasticinelasticreally expensive
- 9. Multiple ChoiceThe following is a factor that will not cause the demand curve to shift:AdvertisingPopulationPriceConsumer expectations
- 10. Multiple ChoiceConsuming more of one good because of a change in price of another good is known as theincome effectsubstitution effectelasticity effectdemand effect
- 11. Multiple ChoiceWhich factor causes the demand curve to shift in the following situation: Bobby graduated from college and got a good job, so he decided to buy a new 2016 Passat.incomepopulationconsumer tastes & advertisingprices of related goods
- 12. Multiple Choice
What does it mean?
Ed = 0
Perfectly inelastic demand
Inelastic demand
Unitarily elastic demand
Elastic demand
Perfectly elastic demand
- 13. Multiple Choice
What does it mean?
Ed = 1
Perfectly inelastic demand
Inelastic demand
Unitarily elastic demand
Elastic demand
Perfectly elastic demand
- 14. Multiple Choice
What does it mean?
Ed = ∞
Perfectly inelastic demand
Inelastic demand
Unitarily elastic demand
Elastic demand
Perfectly elastic demand
- 15. Multiple Choice
What does it mean?
Ed > 1
Perfectly inelastic demand
Inelastic demand
Unitarily elastic demand
Elastic demand
Perfectly elastic demand
- 16. Multiple Choice
What does it mean?
Ed < 1
Perfectly inelastic demand
Inelastic demand
Unitarily elastic demand
Elastic demand
Perfectly elastic demand
- 17. 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
- 18. 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
- 19. Multiple Choice
Which of these demonstrates elastic demand?
a sharp increase in the price of milk causes a large drop in the quantity demanded for milk
the price of homes steadily increase but the quantity demanded for homes does not change
car dealerships cut prices to clear out previous year models and consumers rush to dealerships to take advantage of the sales
gas prices increase in the summer as more people want to go on road trips but the increases do not deter people from buying less gas
- 20. Multiple Choice
Which of these demonstrates inelastic demand? (multiple answers)
a cold snap destroys an apple crop causing prices to jump, however, people still buy apples and quantity demanded does not change
Super Bowl tickets hit record high prices but are still sold out in a matter of minutes and starting going for even higher prices on resale sites
concert tickets are not selling well, so the venue drops prices by 80%; the tickets sell out shortly thereafter
a restaurant starts charging a $10 delivery fee, delivery orders drop by 50% in the first month
- 21. Multiple Choice
Which of these shows a decrease in the quantity demanded?
- 22. Multiple Choice
Which of these shows an increase in the quantity demanded?
- 23. Multiple Choice
Which of these demonstrates inelastic demand?
- 24. Multiple ChoiceIf the price on a product goes up the quantity demanded will go down. This follows the economic theory of:Law of Demandelasticityincome effectNone of the above
- 25. Multiple ChoiceWhich factor causes the demand curve to shift in the following situation: Bobby graduated from college and got a good job, so he decided to buy a new 2016 Passat.incomepopulationconsumer tastes & advertisingprices of related goods
- Answer choicesTagsAnswer choicesTags