Question :
11.If a good has a highly elastic demand curve, then:
A. a : 1379007
11.If a good has a highly elastic demand curve, then:
A. a small percentage change in price will cause a large change in quantity demanded.
B. a small percentage change in price will cause virtually no change in quantity demanded.
C. a large percentage change in price will cause a small change in quantity demanded.
D. any percentage change in price will cause an almost immediate response in quantity demanded.
12.When consumers’ buying decisions are less sensitive to changes in price, we say that their demand curve is:
A. highly elastic.
B. less elastic.
C. very sensitive to changes in the price.
D. unit elastic.
13.When a large percentage change in price causes a small percentage change in the quantity demanded, we say that they have a:
A. very elastic demand.
B. less elastic demand.
C. low magnitude of response.
D. high magnitude of response.
14.If a good has a less elastic demand curve:
A. then a small percentage change in price will cause a large change in quantity demanded.
B. then any percentage change in price will take a long time to cause a response in quantity demanded.
C. then a large percentage change in price will cause a small change in quantity demanded.
D. then any percentage change in price will cause an almost immediate response in quantity demanded.
15.Mathematically, price elasticity of demand is:
A. the percentage change in the quantity of a good that is demanded in response to a given percentage change in price.
B. the percentage change in the price of a good that is demanded in response to a given percentage change in quantity.
C. the percentage change in the quantity of a good that is supplied in response to a given percentage change in price.
D. the percentage change in the price of a good that is supplied in response to a given percentage change in quantity.
16.The calculated price elasticity of demand:
A. is always a negative number, although many times is reported as an absolute value.
B. is sometimes a negative number, depending on the magnitude of response.
C. is always a positive number, because price and quantity are directly related in terms of demand.
D. can be positive or negative, but is always reported as an absolute value.
17.Economists use the percentage change in quantity rather than the absolute change in quantity because:
A. percentage changes are easier to calculate than absolute changes.
B. the measured elasticity is the same regardless of the unit of measurement for quantity.
C. absolute changes are confusing to convert.
D. absolute changes often result in negative numbers.
18.The mid-point method of calculating elasticity is often used because:
A. it allows us to have a consistent way to estimate the elasticity of demand between two points, regardless of the direction of the movement.
B. it is easier to calculate.
C. it is universally understood by all economists.
D. the negative sign can then be ignored.
19.The mid-point method of calculating elasticity:
A. measures the percentage change relative to a point midway between the two points.
B. measures the absolute change relative to a point midway between the two points.
C. measures the percentage change relative to a point midway between demand and supply.
D. None of these is true.
20.Suppose when the price of calculators is $10, the quantity demanded is 100, and when the price is $12, the quantity demanded drops to 80. Using the mid-point method, the price elasticity of demand is:
A. 1.5.
B. 0.81.
C. 150 percent.
D. 81 percent.
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