宏观经济学试题

MicroeconomicsflOe(Parkin)

Chapter4Elasticity

1PriceElasticityofDemand

1)Supposethepriceofburgersincreasesfrom$2to$3each.Thedegreetowhichquantity

demandedrespondstothispriceincreasedependsonthe

A)priceelasticityofdemand.

B)thepriceelasticityofsupply.

C)incomeelasticityofdemand.

D)crosselasticityofdemand.

Answer:A

Topic:PriceElasticityofDemand

Skill:Recognition

Questionhistory:Previousedition,Chapter4

AACSB:ReflectiveThinking

2)Thepriceelasticityofdemandmeasures

A)howoftenthepriceofagoodchanges.

B)theslopeofabudgetcurve.

C)howsensitivethequantitydemandedistochangesindemand.

D)theresponsivenessofthequantitydemandedtochangesinprice.

Answer:D

Topic:PriceElasticityofDemand

Skill:Recognition

Questionhistory:Previousedition,Chapter4

AACSB:ReflectiveThinking

3)Elasticitymeasuresthe

A)percentagechangeinavariable.

B)slopeofacurve.

C)changeinavariable.

D)responsivenessofavariabletoachangeinanothervariable.

Answer:D

Topic:PriceElasticityofDemand

Skill:Recognition

Questionhistory:Previousedition,Chapter4

AACSB:ReflectiveThinking

4)Thepriceelasticityofdemandforpursesismeasuredin

A)dollars.

B)purses.

C)dollarsperpurse.

D)Noneoftheaboveanswersiscorrectbecausetherearenounitsforanelasticityofdemand.

Answer:D

Topic:PriceElasticityofDemand

Skill:Recognition

Questionhistory:Modified10thedition

AACSB:ReflectiveThinking

5)Thepriceelasticityofdemandisdefinedasthemagnitudeofthe

A)changeinquantitydemandeddividedbythechangeinprice.

B)changeinpricedividedbythechangeinquantitydemanded.

C)percentagechangeinquantitydemandeddividedbythepercentagechangeinprice.

D)percentagechangeinpricedividedbythepercentagechangeinquantitydemanded.

Answer:C

Topic:PriceElasticityofDemand

Skill:Recognition

Questionhistory:Previousedition,Chapter4

AACSB:ReflectiveThinking

6)Thepriceelasticityofdemandiscalculatedastheabsolutevalueofthe

A)percentagechangeinquantitydemandeddividedbythepercentagechangeinprice.

B)percentagechangeinpricedividedbythepercentagechangeinquantitydemanded.

C)changeinquantitydemandeddividedbythechangeinprice.

D)changeinpricedividedbythechangeinquantitydemanded.

Answer:A

Topic:PriceElasticityofDemand

Skill:Recognition

Questionhistory:Previousedition,Chapter4

AACSB:ReflectiveThinking

7)Thepriceelasticityofdemandequalsmagnitudeofthe

A)changeinthepricedividedbythechangeinquantitydemanded.

B)changeinthequantitydemandeddividedbythechangeinprice.

C)percentagechangeinthepricedividedbythepercentagechangeinthequantitydemanded.

D)percentagechangeinthequantitydemandeddividedbythepercentagechangeintheprice.

Answer:D

Topic:CalculatingElasticity

Skill:Recognition

Questionhistory:Previousedition,Chapter4

AACSB:ReflectiveThinking

8)Thepriceelasticityofdemandisequaltotheinthedividedbythe

inthe.

A)percentagechange;price;percentagechange;quantitydemanded

B)change;price;change;quantitydemanded

C)percentagechange;quantitydemanded;percentagechange;price

D)change;quantitydemanded;change;price

Answer:C

Topic:PriceElasticityofDemand

Skill:Recognition

Questionhistory:Previousedition,Chapter4

AACSB:ReflectiveThinking

9)Theslopeofademandcurvedependson

A)theunitsusedtomeasurepriceandtheunitsusedtomeasurequantity.

B)theunitsusedtomeasurepricebutnottheunitsusedtomeasurequantity.

C)theunitsusedtomeasurequantitybutnottheunitsusedtomeasureprice.

D)neithertheunitsusedtomeasurepricenortheunitsusedtomeasurequantity.

Answer:A

Topic:PriceElasticityofDemand

Skill:Conceptual

Questionhistory:Previousedition,Chapter4

AACSB:ReflectiveThinking

10)Thepriceelasticityofdemanddependson

A)theunitsusedtomeasurepriceandtheunitsusedtomeasurequantity.

B)theunitsusedtomeasurepricebutnottheunitsusedtomeasurequantity.

C)theunitsusedtomeasurequantitybutnottheunitsusedtomeasureprice.

D)neithertheunitsusedtomeasurepricenortheunitsusedtomeasurequantity.

Answer:D

Topic:PriceElasticityofDemand

Skill:Conceptual

Questionhistory:Previousedition,Chapter4

AACSB:ReflectiveThinking

11)Whenthequantityofcoalismeasuredinkilogramsinsteadofpounds,thedemandforcoal

becomes

A)moreelastic.

B)lesselastic.

C)neithermorenorlesselastic.

D)undefined.

Answer:C

Topic:CalculatingElasticity

Skill:Conceptual

Questionhistory:Previousedition,Chapter4

AACSB:ReflectiveThinking

12)Thepriceelasticityofdemandfororangeschangeiftheunitsofthequantitywas

changedfrompoundstokilogramsandchangeiftheunitsofthepricewaschanged

fromdollarstocents.

A)would;would

B)would;wouldnot

C)wouldnot;would

D)wouldnot;wouldnot

Answer:D

Topic:PriceElasticityofDemand

Skill:Conceptual

Questionhistory:Previousedition,Chapter4

AACSB:ReflectiveThinking

13)Supposethequantityofgasolineismeasuredingallonsandthepriceofgasolineismeasured

indollars.Thepriceelasticityofdemandis0.67.Ifthepriceofgasolinewasnowmeasuredin

centsratherthandollars,thepriceelasticityofdemandwouldnowbe

A)0.0067.

B)0.67.

C)6.7.

D)67.0.

Answer:B

Topic:PriceElasticityofDemand

Skill:Conceptual

Questionhistory:Previousedition,Chapter4

AACSB:ReflectiveThinking

14)Adecreaseinthepriceofeggsfrom$1.50to$1.30perdozenresultedinanincreaseinegg

purchasesintwocities.InPhiladelphia,dailyeggpurchasesincreasedfrom6000to8000dozens;

innearbyDover,Delaware,dailyeggpurchasesincreasedfrom30()to400dozens.Theprice

elasticityofdemandistherefore

A)lowerinthesmallercityaswouldbeexpected.

B)greaterinthesmallercityaswouldbeexpected.

C)certainlyaffectedbypopulationdifferencesindifferentmarkets.

D)thesameinPhiladelphiaasinDover.

Answer:D

Topic:CalculatingElasticity

Skill:Analytical

Questionhistory:Previousedition,Chapter4

AACSB:AnalyticalSkills

15)Dansellsnewspapers.Dansaysthata4percentincreaseinthepriceofanewspaperwill

decreasethequantityofnewspapersdemandedby8percent.AccordingtoDan,thedemandfor

newspapersis.

A)inelastic

B)unitelastic

C)perfectlyelastic

D)elastic

Answer:D

Topic:CalculatingElasticity

Skill:Conceptual

Questionhistory:Previousedition,Chapter4

AACSB:ReflectiveThinking

16)Thepriceelasticityofdemandforfurnitureisestimatedat1.3.Thisvaluemeansaone

percentincreaseinthe

A)priceoffurniturewillincreasethequantityoffurnituredemandedby1.3percent.

B)priceoffurniturewilldecreasethequantityoffurnituredemandedby1.3percent.

C)quantityoffurnituredemandedwilldecreasethepriceoffurnitureby1.3percent.

D)quantityoffurnituredemandedwillincreasethepriceoffurnitureby1.3percent.

Answer:B

Topic:CalculatingElasticity

Skill:Conceptual

Questionhistory:Previousedition,Chapter4

AACSB:AnalyticalSkills

17)Thepriceelasticityofdemandforoilisestimatedat0.05.Thisvaluemeansa1()percent

increaseinthe

A)quantityofoildemandedwillresultfroma0.5percentincreaseinthepriceofoil.

B)quantityofoildemandedwillresultfroma0.5percentdecreaseinthepriceofoil.

C)priceofoilwillincreasethequantityofoildemandedby0.5percent.

D)priceofoilwilldecreasethequantityofoildemandedby0.5percent.

Answer:D

Topic:CalculatingElasticity

Skill:Conceptual

Questionhistory:Previousedition,Chapter4

AACSB:AnalyticalSkills

18)Ifa6percentdecreaseinthepriceleadstoa5percentincreaseinthequantitydemanded,the

priceelasticityofdemandis

A)0.30.

B)0.60.

C)0.83.

D)1.20.

Answer:C

Topic:CalculatingElasticity

Skill:Analytical

Questionhistory:Modified10thedition

AACSB:AnalyticalSkills

19)A10percentincreaseinthequantityofspinachdemandedresultsfroma20percentdecline

initsprice.Thepriceelasticityofdemandforspinachis

A)0.5.

B)2.0.

C)10.0.

D)20.0.

Answer:A

Topic:CalculatingElasticity

Skill:Analytical

Questionhistory:Previousedition,Chapter4

AACSB:AnalyticalSkills

20)A20percentincreaseinthequantityofpizzademandedresultsfroma1()percentdeclinein

itsprice.Thepriceelasticityofdemandforpizzais

A)0.5.

B)2.0.

C)10.0.

D)20.0.

Answer:B

Topic:CalculatingElasticity

Skill:Analytical

Questionhistory:Previousedition,Chapter4

AACSB:AnalyticalSkills

21)Ifa20percentincreaseinthepriceofausedcarresultsina10percentdecreaseinthe

quantityofusedcarsdemanded,thenthepriceelasticityofdemandequals

A)0.5.

B)1.().

C)2.0.

D)10.0.

Answer:A

Topic:CalculatingElasticity

Skill:Analytical

Questionhistory:Previousedition,Chapter4

AACSB:AnalyticalSkills

22)Ifthepriceofamovieticketincreasesby4percentandthequantityofmoviesdemanded

fallsby2percent,thepriceelasticityofdemandis

A)2.0.

B)4.0.

C)0.5.

D)someamountthatcannotbedeterminedwithoutmoreinformation.

Answer:C

Topic:CalculatingElasticity

Skill:Analytical

Questionhistory:Previousedition,Chapter4

AACSB:AnalyticalSkills

23)Ifthepriceofaburgerdecreasesby5percentandasaresultthequantityofburgers

demandedincreasesby8percent,thepriceelasticityofdemandequals

A)0.60.

B)0.40.

C)1.60.

D)0.625.

Answer:C

Topic:CalculatingElasticity

Skill:Analytical

Questionhistory:Previousedition,Chapter4

AACSB:AnalyticalSkills

24)Ifthequantitydemandedofhamburgersincreasesby20percentwhenthepricedecreasesby

5percent,thenthepriceelasticityofdemandis

A)0.25.

B)4.0.

C)20.0.

D)5.().

Answer:B

Topic:CalculatingElasticity

Skill:Analytical

Questionhistory:Previousedition,Chapter4

AACSB:AnalyticalSkills

25)Supposethatthequantityofpizzademandeddecreasedby15percentafteranincreasein

priceof10percent.Whatisthepriceelasticityofdemandforpizza?

A)1.5().

B)0.67.

C)-1.50.

D)-0.67.

Answer:A

Topic:CalculatingElasticity

Skill:Analytical

Questionhistory:Previousedition,Chapter4

AACSB:AnalyticalSkills

26)Whenthepriceofamovieticketincreasesfrom$5to$7,thequantityofticketsdemanded

decreasesfrom600to400aday.Whatisthepriceelasticityofdemandformovietickets?

A)0.83

B)1.20

C)1.00

D)2.32

Answer:B

Topic:CalculatingElasticity

Skill:Analytical

Questionhistory:Previousedition,Chapter4

AACSB:AnalyticalSkills

27)Supposeariseinthepriceofpeachesfrom$5.5()to$6.50perbusheldecreasesthequantity

demandedfrom12,500to11,500bushels.Thepriceelasticityofdemandis

A)0.5.

B)1.0.

C)2.0.

D)1000.().

Answer:A

Topic:CalculatingElasticity

Skill:Analytical

Questionhistory:Previousedition,Chapter4

AACSB:AnalyticalSkills

28)TacoBelFseconomistsdeterminethatthepriceelasticityofdemandfortheirtacosis2.0.So,

ifTacoBellraisesthepriceofitstacosby6.0percent,thequantitydemandedwilldecreaseby

percent.

A)2.0

B)3.()

C)6.0

D)12.0

Answer:D

Topic:CalculatingElasticity

Skill:Analytical

Questionhistory:Previousedition,Chapter4

AACSB:AnalyticalSkills

29)Usingaveragepriceandaveragequantity,calculatethepriceelasticityofdemandifaprice

risefrom$8to$10anddecreasesthequantitydemandedfrom20unitsto15units.Theprice

elasticityofdemandequals

A)2.5.

B)1.29.

C)0.78.

D)0.06

Answer:B

Topic:CalculatingElasticity

Skill:Analytical

Questionhistory:Previousedition,Chapter4

AACSB:AnalyticalSkills

30)Alocalpizzeriaraiseditspricefrom$9to$11foreachpizzaandthesalesofitspizza

decreasedfrom150to100perday.Whatisthepriceelasticityofdemandinthiscase?

A)1/2

B)-2

C)-1/2

D)2

Answer:D

Topic:CalculatingElasticity

Skill:Analytical

Questionhistory:Previousedition,Chapter4

AACSB:AnalyticalSkills

31)Usingtheaveragepriceandaveragequantity,whatistheelasticityofdemandfororanges

whenthepriceoforangeschangesfrom$200to$160perbushelandsothequantitydemanded

changesfrom1000to1400bushels?

A)1.5

B)0.1

C)10.0

D)0.67

Answer:A

Topic:CalculatingElasticity

Skill:Analytical

Questionhistory:Previousedition,Chapter4

AACSB:AnalyticalSkills

32)Ifthepriceofasodaincreasesfrom75,to$1.00andasaresultthequantitydemandedof

sodasdecreasesfrom10to9perweek,theelasticityofdemandforsodasequals

A)2.72.

B)0.37.

C)0.83.

D)1.20.

Answer:B

Topic:CalculatingElasticity

Skill:Analytical

Questionhistory:Previousedition,Chapter4

AACSB:AnalyticalSkills

33)Whenthepriceoforangesincreasesfrom$4to$6perbag,thequantitydemandedof

orangesdecreasesfrom800bagsto700bags.Thepriceelasticityofdemandoverthisprice

rangeisequalto

A)3.

B)3/7or0.4286.

C)1/3or().3333.

D)1/4or0.25.

Answer:C

Topic:CalculatingElasticity

Skill:Analytical

Questionhistory:Previousedition,Chapter4

AACSB:AnalyticalSkills

34)FloridaStateUniversityhasjustloweredthepriceofitsseasonfootballticketsfrom$350.00

to$300.0().Asaresult,therewasanincreaseinthenumberofseasonticketspurchasedfrom

43,000to47,000.Thepriceelasticityofdemandforseasonticketsequals

A)1.71.

B)1.58.

C)0.71.

D)0.58.

Answer:D

Topic:CalculatingElasticity

Skill:Analytical

Questionhistory:Previousedition,Chapter4

AACSB:AnalyticalSkills

35)Supposethequantitydemandedis5unitswhenthepriceis$1.00.Ifthepricerisesto$2.00,

thequantitydemandedfallsto3units.Thepriceelasticityofdemandis

A)0.5.

B)0.75.

C)1.33.

D)2.00.

Answer:B

Topic:CalculatingElasticity

Skill:Analytical

Questionhistory:Previousedition,Chapter4

AACSB:AnalyticalSkills

36)Afallinthepriceoflemonsfrom$10.50to$9.50perbushelincreasesthequantity

demandedfrom19,200to20,800bushels.Thepriceelasticityofdemandis

A)0.80.

B)1.20.

C)1.25.

D)8.00.

Answer:A

Topic:CalculatingElasticity

Skill:Analytical

Questionhistory:Previousedition,Chapter4

AACSB:AnalyticalSkills

37)Lastyearthepriceofcomwas$3perbushelandthequantityofcorndemandedwas8

millionbushels.Thisyearthepriceofcornis$4perbushelandthequantityofcorndemandedis

7millionbushels.Assumingthatthedemandcurvehasnotshifted,whatisthepriceelasticity

ofdemandforcorn?(Usethemidpointformula)

A)1

B)0.47

C)2.14

D)0.29

Answer:B

Topic:CalculatingElasticity

Skill:Analytical

Questionhistory:Previousedition,Chapter4

AACSB:AnalyticalSkills

38)Afallinthepriceofcabbagefrom$10.50to$9.50perbushelincreasesthequantity

demandedfrom18,800to21,200bushels.Thepriceelasticityofdemandis

A)0.80.

B)1.20.

C)1.25.

D)8.00.

Answer:B

Topic:CalculatingElasticity

Skill:Analytical

Questionhistory:Previousedition,Chapter4

AACSB:AnalyticalSkills

39)Supposethatthequantityofrootbeerdemandeddeclinesfrom103,000gallonsperweekto

97,000gallonsperweekasaconsequenceofa10percentincreaseinthepriceofrootbeer.The

priceelasticityofdemandis

A)0.60.

B)1.40.

C)1.66.

D)6.00.

Answer:A

Topic:CalculatingElasticity

Skill:Analytical

Questionhistory:Previousedition,Chapter4

AACSB:AnalyticalSkills

40)Thepriceelasticityofdemandis5.0ifa10percentincreaseinthepriceresultsina

decreaseinthequantitydemanded.

A)2percent

B)5percent

C)10percent

D)50percent

Answer:D

Topic:CalculatingElasticity

Skill:Analytical

Questionhistory:Previousedition,Chapter4

AACSB:AnalyticalSkills

41)AshiftofthesupplycurveofDVDsraisesthepriceofaDVDfrom$9.50to$10.50aDVD

andreducesthequantitydemandedfrom41millionto39millionDVDsamonth.Theprice

elasticityofdemandforDVDsis

A)2millionDVDsamonthperdollar.

B)$1per2millionbarrelsaday.

C)0.5.

D)2.0.

Answer:C

Topic:CalculatingElasticity

Skill:Analytical

Questionhistory:Previousedition,Chapter4

AACSB:AnalyticalSkills

42)Adecreaseinthesupplyofsugarincreasesthepriceofsugarfrom$1.0()apacketto$1.25a

packet.Thequantitydecreasesfrom100packetsadayto8()packetsaday.Thepriceelasticity

ofdemandofsugaris.

A)0.75

B)0.5

C)1.0

D)1.25

Answer:C

Topic:CalculatingElasticity

Skill:Analytical

Questionhistory:Previousedition,Chapter4

AACSB:AnalyticalSkills

43)Supposethepriceelasticityofdemandforoilis0.1.Inordertolowerthepriceofoilby20

percent,thequantityofoilsuppliedmustbeincreasedby

A)200percent.

B)20percent.

C)2percent.

D)0.2percent.

Answer:C

Topic:CalculatingElasticity

Skill:Analytical

Questionhistory:Previousedition,Chapter4

AACSB:AnalyticalSkills

44)Thepriceelasticityofdemandforcigarettesis0.4.Ifgovernmentwantstoreducesmoking

by10percent,byhowmuchshoulditraisethepriceofcigarettesbyimposingatax?

A)by10percent

B)by20percent

C)by25percent

D)by5()percent

Answer:C

Topic:CalculatingElasticity

Skill:Analytical

Questionhistory:Previousedition,Chapter4

AACSB:AnalyticalSkills

45)ThepriceelasticityofdemandforDVDsis2.IfthepriceofaDVDincreasedby2percent,

thequantitydemandedwill.

A)decreaseby2percent

B)notchange

C)decreaseby4percent

D)decreaseby1percent

Answer:C

Topic:CalculatingElasticity

Skill:Analytical

Questionhistory:Previousedition,Chapter4

AACSB:AnalyticalSkills

46)Supposethepriceelasticityofteenager'sdemandforcigarettesis2.0.Ifthegovernment

imposesataxoncigarettesthatraisesthepriceby10percent,byhowmuchwillitreduce

teenagesmoking?

A)by5percent

B)by1()percent

C)by15percent

D)by20percent

Answer:D

Topic:CalculatingElasticity

Skill:Analytical

Questionhistory:Previousedition,Chapter4

AACSB:AnalyticalSkills

47)Accordingtoonestudy,thepriceelasticityofdemandforcigarettesis0.25.Todecreasethe

consumptionofcigarettesby8percent,ataxoncigarettesmustraisethepriceofcigarettesby

A)32percent.

B)25percent.

C)2percent.

D)3.1percent.

Answer:A

Topic:CalculatingElasticity

Skill:Analytical

Questionhistory:Previousedition,Chapter4

AACSB:AnalyticalSkills

48)Becauseofanincreaseinthepriceofleather,thepriceofapairofwomen'sdressshoes

increased12percent.Ifthepriceelasticityofdemandforwomen'sdressshoesis0.85,whichof

thefollowingwillhappen?

A)Totalexpenditureonwomen'sdressshoesdecreases.

B)Thenumberofpairsofwomen'sdressshoesdemandeddecreasesby10.2percent.

C)Totalrevenuefromthesaleofwomen'sdressshoesdecreases.

D)noneoftheabove

Answer:B

Topic:CalculatingElasticity

Skill:Analytical

Questionhistory:Modified10thedition

AACSB:AnalyticalSkills

49)Thepriceelasticityofdemandfornewcarsis1.2.Hence,a1()percentpriceincreasewill

A)decreasethequantityofnewcarsdemandedby1.2percent.

B)increaseconsumerexpenditureonnewcarsby1.2percent.

C)decreasethequantityofnewcarsdemandedby12percent.

D)increaseconsumerexpenditureonnewcarsby12percent.

Answer:C

Topic:CalculatingElasticity

Skill:Analytical

Questionhistory:Previousedition,Chapter4

AACSB:AnalyticalSkills

50)Thepriceofagoodrisesby12percentandthepriceelasticityofdemandforthegoodis

().85.Whichofthefollowingisacorrectinterpretationofthesefacts?

A)Whenthepricerisesby12percent,thequantitydemandeddecreasedby0.85percent.

B)Foreach1percentthatthepricerose,thequantitydemandeddecreasedby10.2percent.

C)Foreach().85percentthatthepricerose,thequantitydemandeddecreasedby1percent.

D)Foreach1percentthatthepricerose,thequantitydemandeddecreasedby0.85percent.

Answer:D

Topic:CalculatingElasticity

Skill:Analytical

Questionhistory:Previousedition,Chapter4

AACSB:AnalyticalSkills

51)Ifthepriceelasticityofdemandforclothingis0.64,thisimpliesthat

A)a6.4percentincreaseinpricethepriceofclothingleadstoa10percentdecreaseinthe

quantitydemanded.

B)a10percentincreaseinthepriceofclothingleadstoa6.4percentdecreaseinthequantity

demanded.

C)ifthereisanincreaseinthepriceofclothingthetotalexpendituresonclothingdecreases.

D)BothanswersAandCarecorrect.

Answer:B

Topic:CalculatingElasticity

Skill:Analytical

Questionhistory:Previousedition,Chapter4

AACSB:AnalyticalSkills

52)Ifthepriceelasticityofdemandforagoodis0.8,thena

A)1percentriseinthepriceleadstoa0.8percentdecreaseinthequantitydemanded.

B)onedollarriseinthepriceleadstoa0.8percentdecreaseinthequantitydemanded.

C)1percentriseinthepriceleadstoan80percentdecreaseinthequantitydemanded.

D)1percentriseinthepriceleadstoan8percentdecreaseinthequantitydemanded.

Answer:A

Topic:CalculatingElasticity

Skill:Analytical

Questionhistory:Previousedition,Chapter4

AACSB:AnalyticalSkills

PriceQuantitydemanded

(dollarsperbushel)(bushels)

82,000

74,000

66,000

58,000

410,000

312,000

53)Thetableabovegivesthedemandscheduleforsnowpeas.Thepriceelasticityofdemand

between$6.00and$7.00perbushelis

A)1.0.

B)2.0.

C)2.6.

D)5.().

Answer:C

Topic:CalculatingElasticity

Skill:Analytical

Questionhistory:Previousedition,Chapter4

AACSB:AnalyticalSkills

54)Thetableabovegivesthedemandscheduleforsnowpeas.Ifthepriceofsnowpeasfalls

from$4.00to$3.00abushel,totalrevenuewill

A)increasebecausedemandiselasticinthisrange.

B)decreasebecausedemandiselasticinthisrange.

C)increasebecausedemandisinelasticinthisrange.

D)decreasebecausedemandisinelasticinthisrange.

Answer:D

Topic:TotalRevenueandElasticity

Skill:Analytical

Questionhistory:Previousedition,Chapter4

AACSB:AnalyticalSkills

55)Thetableabovegivesthedemandscheduleforsnowpeas.Thedemandcurveforsnowpeas

isastraightlineandsotheelasticityofdemandis

A)1atallprices.

B)thesameatallpricesbutnot1.

C)higherathigherprices.

D)lowerathigherprices.

Answer:C

Topic:ElasticityAlongaStraight-LineDemandCurve

Skill:Analytical

Questionhistory:Previousedition,Chapter4

AACSB:AnalyticalSkills

PriceQuantitydemanded

(dollarsperbushel)(bushels)

A100

B84

C68

D412

E216

56)Thetableabovegivesthedemandscheduleforpeas.BetweenpointAandpointB,theprice

elasticityofdemandequals

A)0.11.

B)0.50.

C)0.22.

D)9.09.

Answer:D

Topic:CalculatingElasticity

Skill:Analytical

Questionhistory:Modified10thedition

AACSB:AnalyticalSkills

57)Thetableabovegivesthedemandscheduleforpeas.BetweenpointCandpointD,theprice

elasticityofdemandis

A)elastic.

B)unitelastic.

C)0.75.

D)3.00.

Answer:B

Topic:CalculatingElasticity

Skill:Analytical

Questionhistory:Modified10thedition

AACSB:AnalyticalSkills

58)Thetableabovegivesthedemandscheduleforpeas.Whichofthefollowingstatements

correctlydescribesthepriceelasticityofdemand?

A)ThepriceelasticityofdemandislargeratpointAthanatpointB.

B)ThepriceelasticityofdemandislargeratpointDthanatpointA.

C)Thepriceelasticityofdemandisconstantbecausetheslopeisconstant.

D)ThepriceelasticityofdemandincreasesmovingfrompointAtopointBtopointCtopointD

topointE.

Answer:A

Topic:CalculatingElasticity

Skill:Conceptual

Questionhistory:Previousedition,Chapter4

AACSB:AnalyticalSkills

Quantity(popsiclesperday)

59)Thefigureshowsthedemandcurveforpopsicles.Thepriceelasticityofdemandwhenthe

priceofapopsicleincreasesfrom$0.30to$0.5()is.

A)0

B)1

C)1/2

D)2

Answer:B

Topic:CalculatingElasticity

Skill:Analytical

Questionhistory:Previousedition,Chapter4

AACSB:AnalyticalSkills

60)Thefigureillustratesthedemandforhamburgers.Whenthepriceis$1.00ahamburger,the

elasticityofdemandisanda1percentincreaseinthepricewillthequantity

ofhamburgersdemandedbypercent.

A)1.00;decrease;0.40

B)0.40;decrease;0.40

C)2.50;increase;2.50

D)5.0();decrease;5.00

Answer:B

Topic:CalculatingElasticity

Skill:Analytical

Questionhistory:Previousedition,Chapter4

AACSB:AnalyticalSkills

61)Thepriceelasticityofdemandcanrangebetween

A)zeroandone.

B)negativeinfinityandinfinity.

C)zeroandinfinity.

D)negativeoneandone.

Answer:C

Topic:InelasticandElasticDemand

Skill:Conceptual

Questionhistory:Previousedition,Chapter4

AACSB:ReflectiveThinking

62)Ifthequantitydemandedchangesbyarelativelysmallamountforagivenchangeinprice,

thendemandis

A)perfectlyinelastic.

B)perfectlyelastic.

C)elastic.

D)inelastic.

Answer:D

Topic:InelasticandElasticDemand

Skill:Recognition

Questionhistory:Previousedition,Chapter4

AACSB:ReflectiveThinking

63)Ifthepriceelasticityisbetween0and1,demandis

A)elastic.

B)inelastic.

C)unitelastic.

D)perfectlyelastic.

Answer:B

Topic:InelasticandElasticDemand

Skill:Recognition

Questionhistory:Previousedition,Chapter4

AACSB:ReflectiveThinking

64)Demandisinelasticif

A)alargechangeinquantitydemandedresultsinasm