Demand is said to be inelastic when:

A reduction in price results in a decrease in total revenue

Cross elasticity of demand measures how sensitive purchases of a certain product are to changes

The price of some other product

In which of the following instances will total revenue decline?

Price rises and demand is elastic

When the percentage change in price is greater than the resulting percentage change in quantity

An increase in price will increase total revenue

The main determinant of elasticity of supply is the:

Amount of time the producer has to adjust inputs in response

Price elasticity of supply is:

Greater in the long run than in the short run

A perfectly inelastic demand schedule:

Can be represented by a line parallel to the vertical axis

The supply of product X is elastic if the price of X rises by:

5 percent and quantity supplied rises by 7 percent

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Elasticity

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#The Elasticity quiz.

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Questions 10

Answers

1
A remote island nation is discovered, and on this island the cross elasticity of demand for coc
Substitutes
Complements
Inferior
Normal
2
Block's sells 500 bottles of perfume a month when the price is $7. A huge increase in resource
3.0 and elastic
.33 and elastic
.33 and inelastic
3.0 and inelastic
3
Demand is said to be inelastic when:
An increase in price results in a reduction in total revenue
The elasticity coefficient exceeds one
A reduction in price results in an increase in total revenue
A reduction in price results in a decrease in total revenue
4
Cross elasticity of demand measures how sensitive purchases of a certain product are to changes
The price of some other product
The general price level
Income
The price of that same product
5
In which of the following instances will total revenue decline?
Price rises and demand is elastic
Price rises and demand is inelastic
Price falls and demand is elastic
Price rises and supply is elastic
6
When the percentage change in price is greater than the resulting percentage change in quantity
Demand is elastic
An increase in price will increase total revenue
Demand may be either elastic or inelastic
A decrease in price will increase total revenue
7
The main determinant of elasticity of supply is the:
Number of close substitutes for the product available to con
Number of uses for the product
Amount of time the producer has to adjust inputs in response
Urgency of consumer wants for the product
8
Price elasticity of supply is:
Independent of time
Greater in the short run than in the long run
Positive in the short run but negative in the long run
Greater in the long run than in the short run
9
A perfectly inelastic demand schedule:
Rises upward and to the right, but has a constant slope
Can be represented by a line parallel to the vertical axis
Cannot be shown on a two-dimensional graph
Can be represented by a line parallel to the horizontal axis
10
The supply of product X is elastic if the price of X rises by:
10 percent and quantity supplied remains the same
8 percent and quantity supplied rises by 8 percent
5 percent and quantity supplied rises by 7 percent
7 percent and quantity supplied rises by 5 percent

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