OLE MISS ECON 202 LATEST
MIDTERM HAYES
EXAM
the consumers are largely unresponsive - ANSWERS-The demand for a
product is inelastic with respect to price if _________________.
True - ANSWERS-T/F: The greater the ease of shifting resources from
product X to product Y in the production process, the greater is the
elasticity of supply of product Y.
False - ANSWERS-T/F: If the elasticity coefficient of supply is 0.7,
supply is elastic.
False - ANSWERS-T/F: The smaller the number of good substitutes for
a product, the greater will be the price elasticity of demand for it.
total revenue increases if price is increased - ANSWERS-Which of the
following is not characteristic of the demand for a commodity that is
elastic?
perfectly elastic - ANSWERS-A firm can sell as much as it wants at a
constant price. Demand is thus _____________.
END OF
PAGE
1
, OLE MISS ECON 202 LATEST
MIDTERM HAYES
EXAM
an increase in price will increase total revenue - ANSWERS-When the
percentage change in price is greater than the resulting percentage
change in quantity demanded, what happens?
automobiles - ANSWERS-Which product is most likely to be the most
price elastic?
used clothing - ANSWERS-For which product is the income elasticity of
demand most likely to be negative?
False - ANSWERS-T/F: If the percentage change in quantity demanded
is less than the percentage change in price, then demand is said to be
elastic.
False - ANSWERS-T/F: In the price range where demand is elastic, if
the seller of the good raises its price, then total revenues will increase.
graphs parellel to the vertical axis - ANSWERS-A perfectly inelastic
demand curve does what?
END OF
PAGE
2
MIDTERM HAYES
EXAM
the consumers are largely unresponsive - ANSWERS-The demand for a
product is inelastic with respect to price if _________________.
True - ANSWERS-T/F: The greater the ease of shifting resources from
product X to product Y in the production process, the greater is the
elasticity of supply of product Y.
False - ANSWERS-T/F: If the elasticity coefficient of supply is 0.7,
supply is elastic.
False - ANSWERS-T/F: The smaller the number of good substitutes for
a product, the greater will be the price elasticity of demand for it.
total revenue increases if price is increased - ANSWERS-Which of the
following is not characteristic of the demand for a commodity that is
elastic?
perfectly elastic - ANSWERS-A firm can sell as much as it wants at a
constant price. Demand is thus _____________.
END OF
PAGE
1
, OLE MISS ECON 202 LATEST
MIDTERM HAYES
EXAM
an increase in price will increase total revenue - ANSWERS-When the
percentage change in price is greater than the resulting percentage
change in quantity demanded, what happens?
automobiles - ANSWERS-Which product is most likely to be the most
price elastic?
used clothing - ANSWERS-For which product is the income elasticity of
demand most likely to be negative?
False - ANSWERS-T/F: If the percentage change in quantity demanded
is less than the percentage change in price, then demand is said to be
elastic.
False - ANSWERS-T/F: In the price range where demand is elastic, if
the seller of the good raises its price, then total revenues will increase.
graphs parellel to the vertical axis - ANSWERS-A perfectly inelastic
demand curve does what?
END OF
PAGE
2
