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j  Question 1 (5 points)

Refer to the above table. For which prices is demand inelastic?Question 1 options: A)  in a range of prices below \$6.00 B)  in a range of prices above \$6.00 C)  in a range of prices above \$9.00 D)  in a range of prices between \$5 and \$1
Save Question 2 (5 points)
If the value of the cross elasticity of demand is negative, the two goods areQuestion 2 options: A)  complementary goods. B)  normal goods. C)  substitute goods. D)  inferior goods.
Save Question 3 (5 points)
Which of the following statements about demand and price elasticity of demand is TRUE?Question 3 options: A)  As the demand curve has a negative slope, the price elasticity of demand is negative. B)  As the demand curve has a positive slope, the price elasticity of demand is positive. C)  As the demand curve has a positive slope, the price elasticity of demand is negative. D)  As the demand curve has a negative slope, the price elasticity of demand is positive.
Save Question 4 (5 points)
A consumer is willing and able to buy 1,000 units of a good at \$10, but the consumer’s quantity demanded falls to zero if the price rises even a fraction of a cent. The consumer’s demand curve isQuestion 4 options: A)  downward sloping from higher prices down to \$10 and then horizontal. B)  horizontal and is perfectly elastic. C)  vertical and is perfectly elastic. D)  horizontal and is perfectly inelastic.
Save Question 5 (5 points)
A perfectly inelastic supply curve isQuestion 5 options: A)  downward sloping. B)  vertical. C)  horizontal. D)  an upward sloping straight line that intersects the origin.
Save Question 6 (5 points)
When price is \$5 per unit, quantity demanded is 12 units. When price is \$6 per unit, quantity demanded is 8 units. The value of the absolute price elasticity of demand is approximatelyQuestion 6 options: A)  0.36. B)  4.00. C)  2.20. D)  1.82.
Save Question 7 (5 points)
Which of the following is NOT a determinant of the price elasticity of demand?Question 7 options: A)  existence of substitutes B)  expenditures on the good as a share of a consumer’s budget C)  the amount of time allowed for adjustment to changes in the price of the commodity D)  the price level in a country
Save Question 8 (5 points)
Consider the following data:

The absolute value of the price elasticity of demand for product A isQuestion 8 options: A)  2.25. B)  0.56. C)  0.44. D)  1.80.
Save Question 9 (5 points)
When the absolute price elasticity of demand equals 2.5, demand isQuestion 9 options: A)  undetermined without more information. B)  unit-elastic. C)  elastic. D)  inelastic.
Save Question 10 (5 points)
Suppose 1000 units of a good are sold at \$10 a unit. If price increases to \$15 and total revenue increases to \$15,000 and increases by \$1000 for every dollar increase in price after that, we know thatQuestion 10 options: A)  the demand curve is downward sloping and the firm is on the inelastic portion of the demand curve. B)  the demand curve is a rectangular hyperbola. C)  the demand curve is vertical. D)  demand is perfectly elastic.
Save Question 11 (5 points)
Other things being equal, the longer a price change persistsQuestion 11 options: A)  the less chance a consumer will be able to adjust. B)  the more the consumer will be willing to pay. C)  the greater is the elasticity of demand. D)  the less is the elasticity of demand.
Save Question 12 (5 points)
If the calculated price elasticity of demand between two points is -4, demand isQuestion 12 options: A)  elastic. B)  unit-elastic. C)  inelastic. D)  unresponsive to price.
Save Question 13 (5 points)
The cross price elasticity of demand between two goods is 50. We may conclude thatQuestion 13 options: A)  the demand for one of the goods is likely to be fairly elastic and the demand for the other good is likely to be fairly inelastic. B)  the two goods are poor substitutes for each other. C)  the two goods are very complementary and probably are sold together. D)  the demand for each of the goods is likely to be very elastic.
Save Question 14 (5 points)
If the demand curve for a product is vertical, thenQuestion 14 options: A)  consumers are highly responsive to price changes. B)  consumers may purchase all they want to at the established market price. C)  its price elasticity of demand is equal to zero. D)  the demand for the good is perfectly elastic.
Save Question 15 (5 points)
The responsiveness of demand to changes in income holding the good’s relative price constant isQuestion 15 options: A)  cross price elasticity of demand. B)  income elasticity of demand. C)  price elasticity of demand. D)  elasticity of supply.
Save Question 16 (5 points)
If demand is inelastic and the price of a product decreases by 10 percent, thenQuestion 16 options: A)  the decrease in quantity demanded is greater than 0 percent. B)  the change in quantity demanded is less than 10 percent. C)  the change in quantity demanded is equal to 10 percent. D)  the change in quantity demanded is greater than 10 percent.
Save Question 17 (5 points)
If the absolute price elasticity of demand for concert tickets is 0.75, an increase in ticket prices willQuestion 17 options: A)  not change the elasticity of demand. B)  increase total revenue. C)  not change total revenue. D)  decrease total revenue.
Save Question 18 (5 points)
When John earned \$65,000 he purchased 10 DVDs a year. His income has just increased to \$68,000 and he plans to purchase 15 DVDs this year. John’s income elasticity of demand equalsQuestion 18 options: A)  0. B)  8.87. C)  0.11. D)  1.67.
Save Question 19 (5 points)
Other things being equal, demand is less elasticQuestion 19 options: A)  the more substitutes a good has. B)  the longer is the time period for adjustment. C)  the more expensive the good is. D)  the smaller the percentage of a total budget that a family spends on a good.
Save Question 20 (5 points)
When the consumer spends less than 3% of his income on a good, demand will beQuestion 20 options: A)  elastic. B)  unit-elastic. C)  inelastic. D)  elastic, unit-elastic or inelastic depending upon supply.
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