Home Library Explore SAT

Home Library Explore SAT

PRICE ANALYSIS CHAPTER practice 1 Flashcards | StudBud

Explore/PRICE ANALYSIS CHAPTER practice 1

PRICE ANALYSIS CHAPTER practice 1

11 terms·StudBud Administration·54 plays

Imported from external platform

Flashcards11 cardsFPractice quizPHost liveL

Questions 11

Answers

1
If the quantity demanded of bananas falls by 20% when the price increases by 5%, P.E.D. equals
-1/4
1/4
4
-4
2
The law of demand states as the price increases
The consumers are demanding
The quantity demanded decreases
The consumer demand remains the same
The consumer demand increases
3
The Law of Supply states that when the price increases:
The quantity stays the same
The quantity is a farce
The quantity supplied increases
The quantity demanded decreases
4
What is the definition of supply?
A change in a variable
Other stuff
The desire to purchase goods
The amount of goods available.
5
Goods that have an elastic demand or an elastic P.E.D. are the ones that..
are considered necessities
have lots of substitutes
are considered normal
are considered inferior
6
Surplus means..
low prices
high prices
prices stay the same
7
Elasticity of supply is a measure of the way quantity supplied reacts to a ___ in price.
None of the above
Change
Increase
Decrease
8
Goods that have an inelastic demand are those considered..
easy to substitute
necessities
fresh
cheap
9
Elasticity is:
only the changes in price on the market
how responsive one variable is to changes in another
how far I can stretch a rubber band
the flexibility in the markets people
10
If the P.E.D. of bananas is equal to -3 and the % change in price is -9 (or the price dropped by 9), the % change in Qd
-27
+1/3
27
+3
11
The price elasticity of demand measures how much
price responds to a change in demand.
demand responds to a change in supply
quantity demanded responds to a change in price.
quantity demanded responds to a change in income.