Question : 30) If at a price of $24, Octavia sells 36 : 1387522

 

 

30) If at a price of $24, Octavia sells 36 home-grown orchids and at $30 she sells 24 home-grown orchids, the demand for her orchids is

A) elastic.

B) inelastic.

C) unit-elastic.

D) perfectly elastic.

 

31) At a price of $50, Ghani sells 20 hand-made leather cell-phone covers, but at a price of $60, zero units are sold. Based on this information, the demand for his cell-phone covers is

A) elastic or perfectly inelastic

B) elastic or perfectly elastic.

C) unit-elastic.

D) perfectly inelastic.

 

 

32) At a price of $8 per dozen, Chuy sells 40 dozen homemade tamales per week. When he raised his price to $12 per dozen, he still sold 40 dozen per week. Based on this information, the demand for his tamales is

A) perfectly elastic.

B) inelastic.

C) perfectly inelastic.

D) unit-elastic.

 

 

33) For consumers who opt to pay a $10 monthly fee to have unlimited texting on their cell phones, but choose not to pay a $5 monthly fee to have unlimited call minutes, the unlimited texting option has a ________ than the unlimited minutes option.

A) higher price elasticity of demand

B) higher cross-price elasticity of demand

C) lower price elasticity of demand

D) lower cross-price elasticity of demand

 

34) Economists use the concept of ________ to measure how one economic variable, such as quantity, responds to a change in another economic variable, such as price.

A) slope

B) efficiency

C) relativity

D) elasticity

 

 

35) The price elasticity of demand is equal to

A) the value of the slope of the demand curve.

B) the change in quantity demanded divided by the change in price.

C) the percentage change in price divided by the percentage change in quantity demanded.

D) the percentage change in quantity demanded divided by the percentage change in price.

 

 

36) In September 2012, the average price of gasoline in the United States was $3.91 per gallon, and consumers purchased nearly 5 percent less gasoline than they had during September 2011, when the average price of gasoline was $3.66 per gallon. Based on these figures, from September 2011 to September 2012, the demand for gasoline was

A) elastic.

B) inelastic.

C) unit elastic.

D) perfectly elastic.

 

37) To calculate the price elasticity of demand we divide

A) the percentage change in quantity demanded by the percentage change in price.

B) the percentage change in price by the percentage change in quantity demanded.

C) rise by the run.

D) the average price by the average quantity demanded.

 

 

38) The slope of a demand curve is not used to measure the price elasticity of demand because

A) the slope of a linear demand curve is not constant.

B) the slope of a line cannot have a negative value.

C) the measurement of slope is sensitive to the units chosen for price and quantity.

D) the slope of the demand curve does not tell us how much quantity changes as price changes.

 

 

39) If the slope of a demand curve is equal to -0.1 then

A) demand is inelastic.

B) we don’t know whether the demand is elastic or inelastic.

C) the demand is elastic at low prices and inelastic at high prices.

D) as price increases by 10 percent, quantity demanded decreases by 1 percent.

 

 

 

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