ECU ECON 2113 Exam 2 Practice Questions | Economics Study Guide, Review &
Exam Prep
As elasticity rises, the supply curve is - correct answer ✔✔flatter
If a 15 percent increase in price causes a 30 percent decrease in quantity demanded, this
product might be a - correct answer ✔✔luxury
The greater the price of elasticity of demand the - correct answer ✔✔greater the
responsiveness of quantity demanded to price
If two supply curves pass through the same point and one is steep and the other is flat, which of
the following would be correct? - correct answer ✔✔the steeper supply curve is more inelastic
Which of the following would be true as the elasticity of supply approaches infinity? - correct
answer ✔✔Very small changes in price will lead to very large changes in quantity supplied
If the price elasticity of demand for a good is 4.0, then a 10 percent increase in price would
result in a - correct answer ✔✔40 percent decrease in the quantity demanded.
The difference between slope and elasticity is that - correct answer ✔✔slope measures actual
changes and elasticity measures percentage changes.
In general, elasticity is - correct answer ✔✔a measure of how much buyers and sellers respond
to changes in market conditions.
If the quantity supplied is the same regardless of price, then the supply curve would be - correct
answer ✔✔perfectly inelastic.
, Chocolate Chip Cookie Dough ice cream would tend to have very elastic demand because -
correct answer ✔✔other flavors of ice cream are almost perfect substitutes.
The price elasticity of demand measures - correct answer ✔✔a buyer's responsiveness to a
change in the price of a good.
If the quantity supplied responds only slightly to changes in price, then - correct answer
✔✔supply is said to be inelastic.
A decrease in supply will cause the largest increase in price when - correct answer ✔✔both
supply and demand are inelastic.
Demand for a good would tend to be more inelastic the - correct answer ✔✔fewer the available
substitutes.
For a horizontal demand curve, slope - correct answer ✔✔equals 0 and elasticity is undefined.
Alice says that she would buy one banana split a day regardless of the price. If she is telling the
truth, - correct answer ✔✔Alice's demand for banana splits is perfectly inelastic.
The main determinant of the price elasticity of supply is - correct answer ✔✔time.
The price elasticity of supply measures how much - correct answer ✔✔the quantity supplied
responds to changes in the price of the good.
Which of the following is true concerning a vertical supply curve? - correct answer ✔✔Suppliers
will not respond to a change in price.
Exam Prep
As elasticity rises, the supply curve is - correct answer ✔✔flatter
If a 15 percent increase in price causes a 30 percent decrease in quantity demanded, this
product might be a - correct answer ✔✔luxury
The greater the price of elasticity of demand the - correct answer ✔✔greater the
responsiveness of quantity demanded to price
If two supply curves pass through the same point and one is steep and the other is flat, which of
the following would be correct? - correct answer ✔✔the steeper supply curve is more inelastic
Which of the following would be true as the elasticity of supply approaches infinity? - correct
answer ✔✔Very small changes in price will lead to very large changes in quantity supplied
If the price elasticity of demand for a good is 4.0, then a 10 percent increase in price would
result in a - correct answer ✔✔40 percent decrease in the quantity demanded.
The difference between slope and elasticity is that - correct answer ✔✔slope measures actual
changes and elasticity measures percentage changes.
In general, elasticity is - correct answer ✔✔a measure of how much buyers and sellers respond
to changes in market conditions.
If the quantity supplied is the same regardless of price, then the supply curve would be - correct
answer ✔✔perfectly inelastic.
, Chocolate Chip Cookie Dough ice cream would tend to have very elastic demand because -
correct answer ✔✔other flavors of ice cream are almost perfect substitutes.
The price elasticity of demand measures - correct answer ✔✔a buyer's responsiveness to a
change in the price of a good.
If the quantity supplied responds only slightly to changes in price, then - correct answer
✔✔supply is said to be inelastic.
A decrease in supply will cause the largest increase in price when - correct answer ✔✔both
supply and demand are inelastic.
Demand for a good would tend to be more inelastic the - correct answer ✔✔fewer the available
substitutes.
For a horizontal demand curve, slope - correct answer ✔✔equals 0 and elasticity is undefined.
Alice says that she would buy one banana split a day regardless of the price. If she is telling the
truth, - correct answer ✔✔Alice's demand for banana splits is perfectly inelastic.
The main determinant of the price elasticity of supply is - correct answer ✔✔time.
The price elasticity of supply measures how much - correct answer ✔✔the quantity supplied
responds to changes in the price of the good.
Which of the following is true concerning a vertical supply curve? - correct answer ✔✔Suppliers
will not respond to a change in price.
