Question 1

Along a straight-line supply curve:
A) elasticity rises as price rises.
B) elasticity declines as price declines.
C) elasticity is equal to slope.
D) the change in elasticity depends on the supply curve in question.

Accepted Answer

The answer of Along a straight-line supply curve:
A) elasticity rises...

Question 2

Refer to the table shown to answer the question. Between $2 and $2.20, demand is: $$\begin{array} { | c | c | } 
\hline \text { Price } & \text { Quantity Demanded } \
\hline \$ 1.60 & 130 \
\hline \$ 1.80 & 120 \
\hline \$ 2.00 & 110 \
\hline \$ 2.20 & 100 \
\hline \$ 2.40 & 90 \
\hline \$ 2.60 & 80 \
\hline
\end{array}$$
A) elastic.
B) unit elastic.
C) inelastic.
D) perfectly elastic.

Accepted Answer

The answer of Refer to the table shown to answer...

Question 3

Refer to the graph shown. At which point is elasticity 1? 
A) A
B) B
C) C
D) D

Accepted Answer

The answer of Refer to the graph shown. At which...

Question 4

Refer to the table shown to answer the question. Between $2.20 and $2.40, demand is: $$\begin{array} { | c | c | } 
\hline \text { Price } & \text { Qu.ntity Demanded } \
\hline \$ 1.60 & 130 \
\hline \$ 1.80 & 120 \
\hline \$ 2.00 & 110 \
\hline \$ 2.20 & 100 \
\hline \$ 2.40 & 90 \
\hline \$ 2.60 & 80 \
\hline
\end{array}$$
A) elastic.
B) unit elastic.
C) inelastic.
D) perfectly elastic.

Accepted Answer

The answer of Refer to the table shown to answer...

Question 5

Refer to the following graph.  Elasticity is greatest at point:
A) A.
B) B.
C) C.
D) It is the same everywhere along this supply curve.

Accepted Answer

The answer of Refer to the following graph.  Elasticity...

Question 6

Refer to the following table to answer the question. Demand is inelastic between: $$\begin{array} { | c | c | } 
\hline \text { Price } & \text { Quantity Demanded } \
\hline \$ 6.00 & 18 \
\hline \$ 8.00 & 14 \
\hline \$ 10.00 & 10 \
\hline \$ 12.00 & 6 \
\hline \$ 14.00 & 2 \
\hline
\end{array}$$
A) $6 and $8.
B) $8 and $10.
C) $10 and $12.
D) $12 and $14.

Accepted Answer

The answer of Refer to the following table to answer...

Question 7

Refer to the following graph.  Elasticity is greatest at point:
A) A.
B) B.
C) C.
D) It is the same everywhere along this supply curve.

Accepted Answer

The answer of Refer to the following graph.  Elasticity...

Question 8

Refer to the following graph.  Elasticity is greatest at point:
A) A.
B) B.
C) C.
D) It is the same everywhere along this supply curve.

Accepted Answer

The answer of Refer to the following graph.  Elasticity...

Question 9

Refer to the table shown to answer the question. Between $1.60 and $1.80, demand is: $$\begin{array} { | c | c | } 
\hline \text { Price } & \text { Quantity Demanded } \
\hline \$ 1.60 & 130 \
\hline \$ 1.80 & 120 \
\hline \$ 2.00 & 110 \
\hline \$ 2.20 & 100 \
\hline \$ 2.40 & 90 \
\hline \$ 2.60 & 80 \
\hline
\end{array}$$
A) elastic.
B) unit elastic.
C) inelastic.
D) perfectly elastic.

Accepted Answer

Demand is inelastic between $1.60 and $1.80 because the percentage change in quantity demanded is less than the percentage change in price.

Question 10

Refer to the following table to answer the question. Supply shown by the table is: $$\begin{array} { | c | c | } 
\hline \text { Price } & \text { Quantity Demanded } \
\hline \$ 6.00 & \mathbf { 8 0 } \
\hline \$ 8.00 & 90 \
\hline \$ 10.00 & 100 \
\hline \$ 12.00 & 110 \
\hline \$ 14.00 & 120 \
\hline
\end{array}$$
A) elastic.
B) unit elastic.
C) inelastic.
D) changing as price changes.

Accepted Answer

The answer of Refer to the following table to answer...

Question 11

Elizabeth Savoca estimated that for every 1 percent increase in tuition costs at a college, 2.4 percent fewer students applied to that college. This indicates that the elasticity of applying to college is:
A) inelastic.
B) elastic.
C) perfectly inelastic.
D) unit elastic.

Accepted Answer

The elasticity of applying to college is elastic because the percentage change in the quantity of students applying (2.4%) is greater than the percentage change in tuition costs (1%).

Question 12

George Davis and Michael Wohlgenant estimate that for every 1 percent increase in the price of Christmas trees, quantity demanded falls by 0.6 percent. The demand for Christmas trees is:
A) inelastic.
B) elastic.
C) perfectly inelastic.
D) unit elastic.

Accepted Answer

The demand is inelastic because the percentage change in quantity demanded (0.6%) is less than the percentage change in price (1%).

Question 13

Refer to the graph shown. Which of the following curves demonstrates a perfectly elastic demand curve? 
A) A
B) B
C) C
D) None of the curves

Accepted Answer

The answer of Refer to the graph shown. Which of...

Question 14

Refer to the graph shown. Which of the following curves demonstrates a perfectly inelastic demand curve? 
A) A
B) B
C) C
D) None of the curves

Accepted Answer

The answer of Refer to the graph shown. Which of...

Question 15

Refer to the following table to answer the question. Demand is most elastic between: $$\begin{array} { | c | c | } 
\hline \text { Price } & \text { Quantity Demanded } \
\hline \$ 2.00 & 26 \
\hline \$ 4.00 & 22 \
\hline \$ 6.00 & 18 \
\hline \$ 8.00 & 14 \
\hline \$ 10.00 & 10 \
\hline
\end{array}$$
A) $2 and $4.
B) $4 and $6.
C) $6 and $8.
D) $8 and $10.

Accepted Answer

The answer of Refer to the following table to answer...

Question 16

If consumers won't pay more than $1.50 for a pack of gum and at $1.50 they will buy an almost infinite amount, price elasticity of demand at $1.50 is:
A) inelastic.
B) elastic.
C) perfectly elastic.
D) perfectly inelastic.

Accepted Answer

Price elasticity of demand is perfectly elastic when consumers are willing to buy an infinite amount at a specific price but none at any higher price.

Question 17

Along a straight-line demand curve, elasticity:
A) rises as price rises.
B) declines as price rises.
C) is equal to slope.
D) is always zero.

Accepted Answer

Elasticity along a straight-line demand curve increases as price rises because the percentage change in quantity demanded becomes larger relative to the percentage change in price as you move up the curve.

Question 18

If the elasticity of demand for electricity is 0.13, the demand for electricity is:
A) inelastic.
B) elastic.
C) perfectly inelastic.
D) unit elastic.

Accepted Answer

The elasticity of demand for electricity is 0.13, which is less than 1, indicating that the demand is inelastic.

Question 19

Which of the following statements is true about a downward-sloping demand curve that is a straight line?
A) The slope and the elasticity are the same at all points.
B) The slope remains the same, but elasticity rises as you move down the demand curve.
C) The slope remains the same, but elasticity falls as you move down the demand curve.
D) The slope and the elasticity fall as you move down the demand curve.

Accepted Answer

The slope of a straight-line demand curve is constant, but elasticity decreases as you move down the curve because the percentage change in quantity demanded becomes smaller relative to the percentage change in price.

Question 20

Refer to the graph shown. At which point is elasticity zero? 
A) A
B) B
C) C
D) D

Accepted Answer

The answer of Refer to the graph shown. At which...

Quiz 6: Describing Supply and Demand: Elasticities

Along a straight-line supply curve:

Refer to the graph shown. At which point is elasticity 1?

Refer to the following graph. Elasticity is greatest at point:

Refer to the following table to answer the question. Demand is inelastic between: $\begin{array} { | c | c | } \hline \text { Price } & \text { Quantity Demanded } \\\hline \$ 6.00 & 18 \\\hline \$ 8.00 & 14 \\\hline \$ 10.00 & 10 \\\hline \$ 12.00 & 6 \\\hline \$ 14.00 & 2 \\\hline\end{array}$

Refer to the following graph. Elasticity is greatest at point:

Refer to the following graph. Elasticity is greatest at point:

Elizabeth Savoca estimated that for every 1 percent increase in tuition costs at a college, 2.4 percent fewer students applied to that college. This indicates that the elasticity of applying to college is:

George Davis and Michael Wohlgenant estimate that for every 1 percent increase in the price of Christmas trees, quantity demanded falls by 0.6 percent. The demand for Christmas trees is:

Refer to the graph shown. Which of the following curves demonstrates a perfectly elastic demand curve?

Refer to the graph shown. Which of the following curves demonstrates a perfectly inelastic demand curve?

Refer to the following table to answer the question. Demand is most elastic between: $\begin{array} { | c | c | } \hline \text { Price } & \text { Quantity Demanded } \\\hline \$ 2.00 & 26 \\\hline \$ 4.00 & 22 \\\hline \$ 6.00 & 18 \\\hline \$ 8.00 & 14 \\\hline \$ 10.00 & 10 \\\hline\end{array}$

If consumers won't pay more than $1.50 for a pack of gum and at $1.50 they will buy an almost infinite amount, price elasticity of demand at $1.50 is:

Along a straight-line demand curve, elasticity:

If the elasticity of demand for electricity is 0.13, the demand for electricity is:

Which of the following statements is true about a downward-sloping demand curve that is a straight line?

Refer to the graph shown. At which point is elasticity zero?