Question : 81) In the figure above, using the midpoint method, the : 1239037

81) In the figure above, using the midpoint method, the price elasticity of demand when the price falls from $6 to $5 is equal to

A) 2.50.

B) 1.63.

C) 1.10.

D) 0.91.

E) 1.00.

82) In the mid-1970s, Newsweek magazine reported that the city of Atlanta lowered its city bus fares from 40 cents to 15 cents a passenger. The number of bus riders increased by 15 percent after the fare cut. This set of results indicates that the demand for bus rides in Atlanta at that time was

A) unit elastic.

B) perfectly inelastic.

C) elastic.

D) inelastic.

E) perfectly elastic.

83) When hamburger is $3 per pound, Ms. Rush buys 6 pounds. When hamburger is $2 per pound, Ms. Rush buys 10 pounds. Describe Ms. Rush’s demand between these two prices.

A) elastic

B) unit elastic

C) inelastic

D) perfectly inelastic

E) perfectly elastic

84) Economists use elasticity to measure the responsiveness of quantity to a change in price rather than the slope of the demand curve because elasticity is

A) independent of the units of measurement.

B) dependent on the units of measurement.

C) easier to calculate.

D) harder to calculate.

E) always negative whereas the slope is always positive.

85) Which of the following is correct?

i.All linear demand curves have a constant slope and a constant price elasticity of demand.

ii.The price elasticity of demand changes while moving along a downward-sloping linear demand curve.

iii.The magnitude of the slope of all linear demand curves is equal to the price elasticity of demand.

A) i only

B) ii only

C) iii only

D) i and ii

E) i, ii, and iii

86) Moving downward along a linear (straight-line) downward sloping demand curve, the

A) slope is constant.

B) price is constant.

C) quantity is constant.

D) elasticity is constant.

E) None of the above answers is correct.

87) Moving downward along a linear (straight-line) downward-sloping demand curve, the

A) price elasticity of demand does not change.

B) quantity demanded decreases.

C) demand becomes more elastic.

D) demand becomes less elastic.

E) total revenue never changes.

88) As you move up along a straight-line demand curve,

A) the price elasticity of demand decreases in size.

B) the price elasticity of demand increases in size.

C) total revenue always decreases.

D) total revenue always increases.

E) total revenue never changes.

89) Which of the following statements is correct for the price elasticity of demand along a linear, downward-sloping demand curve?

A) The price elasticity of demand is constant because the slope is constant.

B) At low prices, demand is elastic but at high prices demand is inelastic.

C) At high prices, demand is elastic but at low prices demand is inelastic.

D) The price elasticity of demand is not defined for a linear demand curve because the slope is constant.

E) None of the above answers is correct.

90) At the midpoint of a linear, downward-sloping demand curve, the price elasticity of demand is

A) greater than one.

B) equal to one.

C) less than one but greater than zero.

D) zero.

E) infinite.