ECON101 Week 3 Quiz Latest 2017

Question 1 of 10 Demand is price inelastic if: A. the price of the good responds slightly to a quantity change. B. the demand curve shifts very little when a demand shifter changes. C. the percentage change in quantity demanded is relatively small in response to a relatively large percentage change in price. D. all of the above are true. Question 2 of 10 If the absolute value of price elasticity is greater than 1, this means the demand curve in that region is: A. price elastic. B. price inelastic. C. unit price elastic. D. upward sloping. Question 3 of 10 Which of the following will lead to a decrease in total revenue? A. price goes up and demand is perfectly inelastic B. price goes up and demand is price inelastic C. price declines and demand is price elastic D. price increases and demand is price elastic Question 4 of 10 If total revenue goes up when price falls, the price elasticity of demand is said to be: A. price inelastic. B. unit price elastic. C. price elastic. D. positive. Question 5 of 10 Price elasticity of demand measures the responsiveness of the change in: A. quantity demanded to a change in price. B. price to a change in quantity demanded. C. slope of the demand curve to a change in price. D. slope of the demand curve to a change in quantity demanded. Question 6 of 10 The price elasticity of demand is: A. always positive. B. always greater than 1. C. usually equal to 1. D. always negative. Question 7 of 10 A men's tie store sold an average of 30 ties per day when the price was $5 per tie but sold 50 of the same ties per day when the price was $3 per tie. Hence, the absolute value of the price elasticity of demand is: A. greater than zero but less than 1. B. equal to 1. C. greater than 1 but less than 3. D. greater than 3. Question 8 of 10 If the total revenue received by a firm does not change when it raises its price, this indicates that the demand for the firm's product is: A. unstable. B. price inelastic. C. price elastic. D. unit price elastic. Question 9 of 10 The ratio of the percentage change in a dependent variable to the percentage change in an independent variable, all other things unchanged, is: A. total revenue. B. production possibilities. C. elasticity. D. slope. Question 10 of 10 The price elasticity of a good will tend to be greater: A. the longer the relevant time period. B. the fewer number of substitute goods available. C. if it is a staple or necessity with few substitutes. D. All of the above are true.