Question : 41) When the price of tortilla chips rose by 10 : 1245205

41) When the price of tortilla chips rose by 10 percent, the quantity of tortilla chips sold fell 4 percent. This indicates that the demand for tortilla chips is

A) inelastic.

B) elastic.

C) unit-elastic.

D) perfectly inelastic.

42) A linear downward sloping demand curve has price elasticities (in absolute values) that

A) increase as price decreases.

B) remain constant along the demand curve.

C) decrease as price decreases.

D) are greater than or equal to 1.

43) Carrie Bradshaw claims that when it comes to buying shoes, “price is no object.” If this is true, then her demand for shoes is

A) perfectly elastic.

B) perfectly inelastic.

C) unit-elastic.

D) horizontal.

44) If the price elasticity of demand for insulin is equal to zero then the demand curve for insulin is

A) horizontal.

B) downward sloping.

C) curvilinear.

D) vertical.

Figure 7-7

45) Refer to Figure 7-7. The section of the demand curve labeled “A” represents

A) the inelastic section of the demand curve.

B) the unit-elastic section of the demand curve.

C) the elastic section of the demand curve.

D) the perfectly elastic section of the demand curve.

46) If the demand for iPods is price elastic, then

A) the percentage change in quantity demanded is greater than the percentage change in price (in absolute value).

B) the percentage change in quantity demanded is less than the percentage change in price (in absolute value).

C) the percentage change in quantity demanded is equal to the percentage change in price.

D) quantity demanded is not responsive to changes in price.

47) If the demand for a steak is unit-elastic, then

A) the percentage change in quantity demanded is 1 percent greater than the percentage change in price.

B) the percentage change in quantity demanded is equal to the percentage change in price.

C) the percentage change in quantity demanded is 100 percent greater than the percentage change in price (in absolute value).

D) quantity demanded does not respond to changes in price.

48) If the demand for cell phone service is inelastic, then

A) the percentage change in quantity demanded is greater than the percentage change in price (in absolute value).

B) the percentage change in quantity demanded is equal to the percentage change in price.

C) the quantity demanded does not change in response to changes in price.

D) the percentage change in quantity demanded is less than the percentage change in price (in absolute value).

Figure 7-8

49) Refer to Figure 7-8. As price falls from PA to PB, the quantity demanded increases most along D1; therefore,

A) D1 is unit elastic.

B) D1 is more inelastic than D2 or D3.

C) D1 is more elastic than D2 or D3

D) D1 is elastic at PA but inelastic at PB.

50) The midpoint formula is used to measure the elasticity of demand between two points on a demand curve

A) when demand is elastic.

B) in special cases when the percentage change in the quantity demanded is equal to the percentage change in price.

C) to ensure that the elasticity has a negative value.

D) to ensure that we have only one value of the price elasticity of demand between two points on a demand curve.