keywords:
Bookmark and Share



Front Back
If the number of ice cream bars demanded increases from 19 to 21 when the price decreases from 1.5 ro .5, the price elasticity of demand is:
A)-5
B)-.2
C)-.1
C
If quantity demanded increases 20% when the price drops 2%, this good exhibits:
A)elastic, but not perfectly elastic demand
B)inelastic, but not perfectly inelastic demand
C)perfectly inelastic demand
A
The primary factors that influence the price elasticity of demand for a product are:
A)changes in consumers' incomes, the time since the price change occurred, and availabity of substitute goods
B)the proportions of consumers' budgets spent on the product, the size of the shift in the demand curve for a product, and changes in consumers' price expectations
C)the availability of substutute goods, the time that has elapsed since the price of the good changed, and the proportions of consumers' budgets spent on the product
C
If a good has elastic demand, a small percentage price increase will cause:
A) a smaller percentage increase in the quantity demanded
B)a larger pertentage decrease in the quantity demanded
C)a larger percentage increase in quantity demanded
B
The cross elasticity of demand for a substitute good and the income elasticity for an inferior good are:
A)   <0     >0
B)   <0     <0 
C)   >0     <0
C
Income elasticity is defined as the percentage change in:
A) quantity demanded divided by the percentage change in income
B) income divided by the percentage change in quantity demanded
C) quanityt demanded divided by percentage change in the price of the product
A
If quantity demanded for a good rises 20% when incomes rise 2%, the good is a(n):
A) necessity
B) luxury good
C) inferior good
B
When household incomes go up and the quantity of a product demanded goes down, the product is a(n):
A) necessity
B) luxury good
C) inferior good
C
If the price elasticity of demand is -2 and the price of the product decreases by 5%, the quantity demanded will:
A) decrease 2%
B) increase 5%
C) increase 10%
C
Which of the following is most likely a factor that influences the elasticity of supply for a good?
A) The price of the productive resources used to produce it
B) The proportion of consumers' budgets spend on the good.
C) The availability of substitute productive resources
C
If the price elasticity of a linear demand curve is -1 at the current price, an increase in price will lead to:
A) a decrease in total revenue
B) no change in total revenue
C) an increase in total revenue
A
x of y cards