BSNS 113 QUIZ 4 Assignment Set With Solved Solutions Updated Edition.

BSNS 113 QUIZ 4 Assignment Set With
Solved Solutions 2025\2026 Updated
Edition.
If the price of cheese falls by 1% and the quantity demanded increases by 4%, then the price
elasticity of demand (є) for cheese is

(A) 0.25

(B) 0.4

(C) 1.0

(D) 4.0 - Answer (D) 4.0



If the business managers at Otago University were thinking of increasing student fees in the
hope of raising more revenue from students, which of the following values would it prefer as
the price elasticity of demand for enrolments?

(A) 0.3

(B) 1.0

(C) 3.0

(D) ∞, i.e., infinitely or perfectly elastic demand. - Answer (A) 0.3



Suppose the price of skateboards increases by 10%. If the price elasticity of demand for
skateboards were 0.5, then the quantity of skateboards demanded would fall by

(A) 20%

(B) 10%

(C) 5%

(D) 0.5% - Answer (C) 5%



Suppose that The Playhouse Theatre is thinking of lowering the price of the tickets it sells to
students who might come to see its plays. It sells 30 tickets per performance at the current price
of $17.50. As an experiment, Playhouse managers lowered the price to $12.50 and sold 50
tickets.

Use the mid-point (arc) method, what is the price elasticity of demand?

(A) 0

(B) 0.75