Question : 11) Suppose the local university charges $85 per credit hour. : 1241515

11) Suppose the local university charges $85 per credit hour. If tuition increases from $85 to $93 per credit hour, using the midpoint method, what is the percentage change in price?

A) 8.99 percent

B) 8.00 percent

C) 9.41 percent

D) 8.62 percent

E) 9.12 percent

12) Using the midpoint method, if the price of an airline ticket from Orlando to Pittsburgh falls from $275 to $238, the percentage change in price is

A) 1442 percent.

B) 14.42 percent.

C) 15.54 percent.

D) 13.45 percent.

E) 68.00 percent.

13) If the demand for a good is elastic, then

A) people do not change the quantity they demand when the price of the good changes.

B) a change in price leads to a smaller percentage change in the quantity demanded.

C) people substantially decrease the quantity of the good they buy if its price increases by a small percentage.

D) a change in the quantity demanded is smaller than the change in price.

E) the quantity demanded divided by the price exceeds 1.00.

14) When the percentage change in the quantity demanded exceeds the percentage change in price, then demand is

A) inelastic.

B) unit elastic.

C) elastic.

D) irrelevant.

E) undefined.

15) If the percentage change in price is 10 percent and the demand is elastic, then the percentage change in the quantity demanded

A) is greater than 0 percent but less than 10 percent.

B) is larger than 10 percent.

C) equals 0 percent.

D) equals 10 percent.

E) More information is needed to determine the magnitude of the change in the quantity demanded.

16) If the price of a six-pack of Pepsi falls from $4 to $3 and the quantity purchased increases 80 percent, then demand is

A) inelastic.

B) elastic.

C) unit elastic.

D) perfectly inelastic.

E) perfectly elastic.

17) Suppose the Chicago Bears football team raises ticket prices by 13 percent and as a result the quantity of tickets demanded decreases by 21 percent. This response means that the demand for Bears tickets is

A) inelastic.

B) elastic.

C) unit elastic.

D) perfectly inelastic.

E) perfectly elastic.

18) If the price elasticity of demand for moose hunting lessons is 4.23, then the demand for moose hunting lessons is

A) elastic.

B) unit elastic.

C) inelastic.

D) perfectly unit elastic.

E) perfectly elastic.

19) Suppose the demand for peaches sold from one roadside stand in Georgia is perfectly elastic. As a result, a 7 percent increase in the price charged by the owner of this stand leads to

A) zero peaches sold by this stand.

B) no change in the quantity demanded at this stand.

C) a 7 percent decrease in the quantity demanded at this stand.

D) a 7 percent decrease in demand at this stand.

E) a virtually infinite increase in the quantity demanded at this stand.

20) When the percentage change in the quantity demanded is less than the percentage change in price, then demand is

A) inelastic.

B) unit elastic.

C) elastic.

D) irrelevant.

E) undefined.