Question : 50) If the demand for cell phone service inelastic, then A) : 1387524

50) 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 6-6

51) Refer to Figure 6-6.  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.

52) 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.

53) When the price of pistachio nuts is $7.50 per lb., the quantity demanded is 48 lbs. When the price of peaches is $9.00 per lb., the quantity demanded is 40 lbs. When the midpoint formula is used to measure the price elasticity of demand we can say that the demand for pistachio nuts is

A) relatively, but not perfectly, elastic.

B) unit-elastic.

C) completely inelastic.

D) relatively, but not perfectly, inelastic.

54) Assume that when the price of cantaloupes is $2.50, the demand for cantaloupes is unit-elastic and the demand curve for cantaloupes is linear and downward sloping. If firms lower the price of cantaloupes to $2.00, which of the following statements can be made regarding the price elasticity of demand for cantaloupes?

A) The demand for cantaloupes at $2.00 must be inelastic.

B) We cannot determine whether the demand for cantaloupes is elastic or inelastic without knowing what the quantity demanded is at each price.

C) The demand for cantaloupes at $2.00 must be elastic.

D) The demand for cantaloupes at $2.00 must be unit-elastic.

55) Assume that the demand curve for sunblock is linear and downward sloping. Which of the following statements about the slope of the demand curve for sunblock and the price elasticity of demand for sunblock are true?

A) The slope and the price elasticity of demand are constant at all points along the demand curve for sunblock.

B) The slope is constant, but the price elasticity of demand is not constant at all points along the demand curve for sunblock.

C) The slope is not constant, but the price elasticity of demand is constant at all points along the demand curve for sunblock.

D) The slope of the demand curve for sunblock is constant and equal to zero; demand is perfectly inelastic.

56) If the percentage change in the quantity of teapots demanded is greater than the percentage change in the price of teapots, then

A) the price elasticity of demand for teapots is greater than 1 in absolute value.

B) the demand for teapots is unit-elastic.

C) the price elasticity of demand for teapots is equal to zero.

D) the price elasticity of demand for teapots is less than 1 in absolute value.

57) We should never assume that an inelastic demand curve is a perfectly inelastic demand curve because

A) there has never been evidence of a perfectly inelastic demand curve.

B) an inelastic demand curve may be perfectly inelastic at some times but not others.

C) perfectly inelastic demand curves are rare.

D) an inelastic demand curve may be elastic at high prices.