An increase in demand will increase equilibrium price to a greater extent

the less elastic the supply curve.

If the price elasticity of demand for a product is unity, a decrease in price will:

increase the quantity demanded,total revenue unchanged

If supply is perfectly inelastic and demand decreases then

Price will fall and quantity remain the same

Price elasticity of supply is calculated by dividing the percentage change in

Quantity supplied by the percentage change in price

We would expect the cross elasticity of demand between dress shirts and ties to be:

negative, indicating complementary goods.

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Elasticity- AP Econ

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#Econ quiz to test knowledge of #elasticity.

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Questions 10

Answers

1
An increase in demand will increase equilibrium price to a greater extent
if the product is a normal good.
the less elastic the supply curve.
the more elastic the supply curve.
if the product is an inferior good.
2
If the price elasticity of demand for a product is unity, a decrease in price will:
increase the quantity demanded and increase total revenue.
increase the quantity demanded but decrease total revenue.
increase the quantity demanded,total revenue unchanged
have no effect upon the amount purchased.
3
Suppose tangerines are an inferior good. If your income decreases, you will buy ___ tangerines.
Fewer
More
4
If profit equals revenue, then cost must equal zero
True
False
5
If supply is perfectly inelastic and demand decreases then
Price will rise and quantity will decrease
Price will rise and quantity remain the same
Price will fall and quantity will increase
Price will fall and quantity remain the same
6
If demand is inelastic and price decreases then total revenue will:
fall
remain constant
equal one
rise
7
Price elasticity of supply is calculated by dividing the percentage change in
Quantity supplied by the percentage change in income
Quantity supplied by the % change in quantity demanded
Quantity demanded by the percentage change in price
Quantity supplied by the percentage change in price
8
The demand for a necessity whose cost is a small portion of one's total income is:
perfectly price inelastic.
perfectly price elastic.
relatively price elastic.
relatively price inelastic.
9
when quantity demanded does not respond at all to price, demand is perfectly
inelastic
elastic
10
We would expect the cross elasticity of demand between dress shirts and ties to be:
positive, indicating complementary goods.
negative, indicating complementary goods.
negative, indicating substitute goods.
positive, indicating normal goods.

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