A good with a horizontal demand curve has a demand

B) with a price elasticity of demand of infinity.

Producers' total revenue will increase if

B) the price rises and demand is inelastic.

The more substitutes available for a product,

D) the larger is its the price elasticity of demand.

If the demand for a good is unit elastic,

A) 5 %increase in price results in a 5% increase in TR.

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ELASTICITY

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This quiz will assess the understanding of students on the concepts of elasticity of #demand,#supply,#cross elasticity and income elasticity.

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Questions 12

Answers

1
For which product is the income elasticity of demand most likely to be negative?
B) used clothing
D) bread
C) basketballs
A) computer software
2
The demand for a good is elastic if the coefficient is?
less than 0
less than 1
more than 0
more than 1
3
A good with a horizontal demand curve has a demand
C) for which there are no substitute.
D) with a price elasticity of demand of 0.
B) with a price elasticity of demand of infinity.
A) with an income elasticity of demand of 0.
4
If the price elasticity of demand for a good is .75, the demand is
B) elastic.
A) normal
D) inelastic.
C) inferior.
5
Producers' total revenue will increase if
B) the price rises and demand is inelastic.
C) the price rises and demand is elastic.
D) income increases and the good is an inferior good.
A)income falls and the good is a normal good.
6
The more substitutes available for a product,
C) the smaller is its price elasticity of demand
D) the larger is its the price elasticity of demand.
B) the smaller is its income elasticity of demand
a)the larger is its income elasticity of demand.
7
Total revenue falls as the price of a good increases if price elasticity of demand is:
B) inelastic.
D) perfectly elastic.
A) elastic.
C) unitary elastic.
8
Which of the factors, can influence the elasticity of supply?
B) technology
A) Income
C) Substitutes
D) marketing
9
If the demand for a good is unit elastic,
D) a 5 percent increase in price does not change TR.
C) a 5 % increase in price results in a 5 % decrease in TR.
B) the demand curve is a straight line with slope of -1.
A) 5 %increase in price results in a 5% increase in TR.
10
Which Of the following goods , demand is likely to be the least elastic . D) diamonds.
C) insulin for diabetics.
A) pink grapefruit.
D) diamonds.
B) iceberg lettuce.
11
Which of the factors make elasticity of supply elastic
undetermined
none of the above
short run
long run
12
A 3 % increase in the $ of tea causes a 6% increase in the demand for coffee. The Exy is
D) +2.0.
A) -0.5.
C) -2.0.
B) +0.5.

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