Question 1

The price elasticity of demand measures the:

Accepted Answer

A) responsiveness of the change in quantity demanded to a change in price. 
B) change in price versus a change in quantity demanded. 
C) responsiveness of the change in the slope of the demand curve to a change in price. 
D) change in the slope of the demand curve versus a change in the quantity demanded. 
A) responsiveness of the change in quantity demanded to a change in price. 
B) change in price versus a change in quantity demanded. 
C) responsiveness of the change in the slope of the demand curve to a change in price. 
D) change in the slope of the demand curve versus a change in the quantity demanded.

Question 2

Which factor does NOT determine the price elasticity of demand?

Accepted Answer

A) the number of available substitutes 
B) the time available to adjust to price changes 
C) the proportion of the budget spent on the item 
D) the slope of the supply curve 
A) the number of available substitutes 
B) the time available to adjust to price changes 
C) the proportion of the budget spent on the item 
D) the slope of the supply curve

Question 3

If the price elasticity of demand between two points on a demand curve is 0.75,then the demand between those two points is:

Accepted Answer

A) price unit-elastic. 
B) price-inelastic. 
C) price-elastic. 
D) unknown. 
A) price unit-elastic. 
B) price-inelastic. 
C) price-elastic. 
D) unknown.

Question 4

The pair of items that is MOST likely to have a negative cross-price elasticity of demand is:

Accepted Answer

A) aspirin and hamburgers. 
B) hot dogs and mustard. 
C) margarine and butter. 
D) ketchup and coffee. 
A) aspirin and hamburgers. 
B) hot dogs and mustard. 
C) margarine and butter. 
D) ketchup and coffee.

Question 5

If the cross-price elasticity of demand between rice and beans is -0.25,rice and beans are complements.

Accepted Answer

A) True 
 B)False

Question 6

Use the following to answer question:  
-(Table: Price Elasticity)Use Table: Price Elasticity.What is the price elasticity of demand (using the midpoint formula)between $2.00 and $1.75?

Accepted Answer

A) 2.33 
B) 3.00 
C) 4.00 
D) 0.125 
A) 2.33 
B) 3.00 
C) 4.00 
D) 0.125

The price elasticity of demand measures the:

Which factor does NOT determine the price elasticity of demand?

If the price elasticity of demand between two points on a demand curve is 0.75,then the demand between those two points is:

The pair of items that is MOST likely to have a negative cross-price elasticity of demand is:

If the cross-price elasticity of demand between rice and beans is -0.25,rice and beans are complements.

Use the following to answer question: -(Table: Price Elasticity)Use Table: Price Elasticity.What is the price elasticity of demand (using the midpoint formula)between $2.00 and $1.75?

First Principles

Economic Models: Trade-Offs and Trade

Consumer and Producer Surplus

Supply and Demand

Price Controls and Quotas: Meddling With Markets

Taxes

International Trade

Decision Making by Individuals and Firms

The Rational Consumer

Behind the Supply Curve: Inputs and Costs

Perfect Competition and the Supply Curve

Monopoly

Oligopoly

Monopolistic Competition and Product Differentiation

Externalities

Public Goods and Common Resources

The Economics of the Welfare State

Factor Markets and the Distribution of Income

Uncertainty, Risk, and Private Information

Graphs in Economics

Consumer Preferences and Consumer Choice

Filters

Exam 6: Elasticity

The price elasticity of demand measures the:

Which factor does NOT determine the price elasticity of demand?

If the price elasticity of demand between two points on a demand curve is 0.75,then the demand between those two points is:

The pair of items that is MOST likely to have a negative cross-price elasticity of demand is:

If the cross-price elasticity of demand between rice and beans is -0.25,rice and beans are complements.

Use the following to answer question: -(Table: Price Elasticity)Use Table: Price Elasticity.What is the price elasticity of demand (using the midpoint formula)between $2.00 and $1.75?

First Principles

Economic Models: Trade-Offs and Trade

Consumer and Producer Surplus

Supply and Demand

Price Controls and Quotas: Meddling With Markets

Taxes

International Trade

Decision Making by Individuals and Firms

The Rational Consumer

Behind the Supply Curve: Inputs and Costs

Perfect Competition and the Supply Curve

Monopoly

Oligopoly

Monopolistic Competition and Product Differentiation

Externalities

Public Goods and Common Resources

The Economics of the Welfare State

Factor Markets and the Distribution of Income

Uncertainty, Risk, and Private Information

Graphs in Economics

Consumer Preferences and Consumer Choice

Filters