front 1 Price elasticity of demand is defined a
| back 1 Answer: B |
front 2 If an increase in the price of a product from $1 to $2 per unit leads to a decrease in the quantity demanded from 100 to 80 units, then the value of price elasticity of demand is
| back 2 Answer: B |
front 3 If the value of the price elasticity of demand is -0.2, this means that a
| back 3 Answer: C |
front 4
| back 4 Answer: D |
front 5 Based on the information in Exhibit 5-2, the demand for the good is __________ and an increase in price from $40 to $60 per unit will __________ total revenue.
| back 5 Answer: B |
front 6 If a 5% increase in price leads to an 8% decrease in quantity demanded, demand is
| back 6 Answer: B |
front 7 If an increase in the price of a product from $100 to $200 per unit leads to a decrease in the quantity demanded from 10 to 8 units, then demand is
| back 7 Answer: B |
front 8 Demand is inelastic only if
| back 8 Answer: C |
front 9 Demand is inelastic if
| back 9 Answer: A |
front 10 Demand is unit elastic whenever
| back 10 Answer: A |
front 11 Demand is elastic whenever
| back 11 Answer: B |
front 12 A perfectly elastic demand curve is
| back 12 Answer: B |
front 13 If a firm facing a perfectly elastic demand curve raises its price
| back 13 Answer: C |
front 14 A perfectly inelastic demand curve is
| back 14 Answer: A |
front 15 If a firm raises the price of its product, its total revenue will
| back 15 Answer: B |
front 16 If a price reduction leads to larger total revenue, demand is
| back 16 Answer: D |
front 17 John spends exactly the same dollar amount on candy bars each week, regardless of their price. John's demand curve for candy bars is
| back 17 Answer: E |
front 18 If the administration raises tuition on our campus in order to increase revenue, it will
| back 18 Answer: C |
front 19 If the demand for a good is elastic, then total revenue
| back 19 Answer: C |
front 20 If demand is unit elastic, a price reduction will
| back 20 Answer: D |
front 21 If the demand for swordfish is price elastic and the price of swordfish increases, then
| back 21 Answer: B |
front 22 Which of the following describes a situation in which demand must be elastic?
| back 22 Answer: E |
front 23 Along a linear demand curve,
| back 23 Answer: D |
front 24 Along a downward-sloping linear demand curve, total revenue is greatest if demand is
| back 24 Answer: E |
front 25 If the managers of a theater plan to raise ticket prices to increase ticket revenues, then they must believe that demand is
| back 25 Answer: B |
front 26 Along a linear demand curve, as the price rises, demand becomes more
| back 26 Answer: B |
front 27 Between points a and b on the demand curve in Exhibit 5-9, demand is
| back 27 Answer: D |
front 28 Given the availability of California oranges, demand for Florida oranges will
| back 28 Answer: B |
front 29 The more broadly a good is defined,
| back 29 Answer: D |
front 30 Demand is more elastic
| back 30 Answer: D |
front 31 A good that takes up a very large percentage of the consumer's budget will tend to have
| back 31 Answer: A |
front 32 Which of the following tends to make demand for a good more elastic?
| back 32 Answer: B |
front 33 Inferior goods have an income elasticity of demand that is
| back 33 Answer: B |
front 34 For which of the following goods is the value of income elasticity most likely to be negative?
| back 34 Answer: A |
front 35 Economists distinguish between normal and inferior goods using
| back 35 Answer: C |
front 36 The cross-price elasticity of demand between rifles and bullets is likely to be
| back 36 Answer: A |
front 37 If the cross-price elasticity of demand is -3, then
| back 37 Answer: E |
front 38 If an increase in the price of peanut butter causes a decline in the demand for jelly, then
| back 38 Answer: C |
front 39 If the cross-price elasticity of demand between two goods is positive, then
| back 39 Answer: C |