macro week 3
Part 1 of 3 - 100.0/ 100.0 Points
Question 1 of 16 10.0/ 10.0 Points
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.
Correct 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.
Answer Key: C
Question 2 of 16 10.0/ 10.0 Points
If the absolute value of price elasticity is greater than 1, this means the demand curve in that region is:
Correct A.price elastic. B.price inelastic. C.unit price elastic. D.upward sloping.
Answer Key: A
Question 3 of 16 10.0/ 10.0 Points
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
Correct D.price increases and demand is price elastic
Answer Key: D
Question 4 of 16 10.0/ 10.0 Points
If total revenue goes up when price falls, the price elasticity of demand is said to be: A.price inelastic. B.unit price elastic.
Correct C.price elastic. D.positive.
Answer Key: C
Question 5 of 16 10.0/ 10.0 Points
Price elasticity of demand measures the responsiveness of the change in:
Correct 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.
Answer Key: A
Question 6 of 16 10.0/ 10.0 Points
The price elasticity of demand is: A.always positive. B.always greater than 1. C.usually equal to 1.
Correct D.always negative.
Answer Key: D
Question 7 of 16 10.0/ 10.0 Points
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
Question 1 of 16 10.0/ 10.0 Points
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.
Correct 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.
Answer Key: C
Question 2 of 16 10.0/ 10.0 Points
If the absolute value of price elasticity is greater than 1, this means the demand curve in that region is:
Correct A.price elastic. B.price inelastic. C.unit price elastic. D.upward sloping.
Answer Key: A
Question 3 of 16 10.0/ 10.0 Points
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
Correct D.price increases and demand is price elastic
Answer Key: D
Question 4 of 16 10.0/ 10.0 Points
If total revenue goes up when price falls, the price elasticity of demand is said to be: A.price inelastic. B.unit price elastic.
Correct C.price elastic. D.positive.
Answer Key: C
Question 5 of 16 10.0/ 10.0 Points
Price elasticity of demand measures the responsiveness of the change in:
Correct 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.
Answer Key: A
Question 6 of 16 10.0/ 10.0 Points
The price elasticity of demand is: A.always positive. B.always greater than 1. C.usually equal to 1.
Correct D.always negative.
Answer Key: D
Question 7 of 16 10.0/ 10.0 Points
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