1、Microeconomics, 10e (Parkin)Chapter 4 Elasticity1 Price Elasticity of Demand1) Suppose the price of burgers increases from $2 to $3 each. The degree to which quantity demanded responds to this price increase depends on theA) price elasticity of demand.B) the price elasticity of supply.C) income elas
2、ticity of demand.D) cross elasticity of demand.Answer: ATopic: Price Elasticity of DemandSkill: RecognitionQuestion history: Previous edition, Chapter 4AACSB: Reflective Thinking2) The price elasticity of demand measuresA) how often the price of a good changes.B) the slope of a budget curve.C) how s
3、ensitive the quantity demanded is to changes in demand.D) the responsiveness of the quantity demanded to changes in price.Answer: DTopic: Price Elasticity of DemandSkill: RecognitionQuestion history: Previous edition, Chapter 4AACSB: Reflective Thinking3) Elasticity measures theA) percentage change
4、in a variable.B) slope of a curve.C) change in a variable.D) responsiveness of a variable to a change in another variable.Answer: DTopic: Price Elasticity of DemandSkill: RecognitionQuestion history: Previous edition, Chapter 4AACSB: Reflective Thinking4) The price elasticity of demand for purses is
5、 measured inA) dollars.B) purses.C) dollars per purse.D) None of the above answers is correct because there are no units for an elasticity of demand.Answer: DTopic: Price Elasticity of DemandSkill: RecognitionQuestion history: Modified 10th editionAACSB: Reflective Thinking5) The price elasticity of
6、 demand is defined as the magnitude of theA) change in quantity demanded divided by the change in price.B) change in price divided by the change in quantity demanded.C) percentage change in quantity demanded divided by the percentage change in price.D) percentage change in price divided by the perce
7、ntage change in quantity demanded.Answer: CTopic: Price Elasticity of DemandSkill: RecognitionQuestion history: Previous edition, Chapter 4AACSB: Reflective Thinking6) The price elasticity of demand is calculated as the absolute value of theA) percentage change in quantity demanded divided by the pe
8、rcentage change in price.B) percentage change in price divided by the percentage change in quantity demanded.C) change in quantity demanded divided by the change in price.D) change in price divided by the change in quantity demanded.Answer: ATopic: Price Elasticity of DemandSkill: RecognitionQuestio
9、n history: Previous edition, Chapter 4AACSB: Reflective Thinking7) The price elasticity of demand equals magnitude of theA) change in the price divided by the change in quantity demanded.B) change in the quantity demanded divided by the change in price.C) percentage change in the price divided by th
10、e percentage change in the quantity demanded.D) percentage change in the quantity demanded divided by the percentage change in the price.Answer: DTopic: Calculating ElasticitySkill: RecognitionQuestion history: Previous edition, Chapter 4AACSB: Reflective Thinking8) The price elasticity of demand is
11、 equal to the _ in the _ divided by the _ in the _.A) percentage change; price; percentage change; quantity demandedB) change; price; change; quantity demandedC) percentage change; quantity demanded; percentage change; priceD) change; quantity demanded; change; priceAnswer: CTopic: Price Elasticity
12、of DemandSkill: RecognitionQuestion history: Previous edition, Chapter 4AACSB: Reflective Thinking9) The slope of a demand curve depends onA) the units used to measure price and the units used to measure quantity.B) the units used to measure price but not the units used to measure quantity.C) the un
13、its used to measure quantity but not the units used to measure price.D) neither the units used to measure price nor the units used to measure quantity.Answer: ATopic: Price Elasticity of DemandSkill: ConceptualQuestion history: Previous edition, Chapter 4AACSB: Reflective Thinking10) The price elast
14、icity of demand depends onA) the units used to measure price and the units used to measure quantity.B) the units used to measure price but not the units used to measure quantity.C) the units used to measure quantity but not the units used to measure price.D) neither the units used to measure price n
15、or the units used to measure quantity.Answer: DTopic: Price Elasticity of DemandSkill: ConceptualQuestion history: Previous edition, Chapter 4AACSB: Reflective Thinking11) When the quantity of coal is measured in kilograms instead of pounds, the demand for coal becomesA) more elastic.B) less elastic
16、.C) neither more nor less elastic.D) undefined.Answer: CTopic: Calculating ElasticitySkill: ConceptualQuestion history: Previous edition, Chapter 4AACSB: Reflective Thinking12) The price elasticity of demand for oranges _ change if the units of the quantity was changed from pounds to kilograms and _
17、 change if the units of the price was changed from dollars to cents.A) would; wouldB) would; would notC) would not; wouldD) would not; would notAnswer: DTopic: Price Elasticity of DemandSkill: ConceptualQuestion history: Previous edition, Chapter 4AACSB: Reflective Thinking13) Suppose the quantity o
18、f gasoline is measured in gallons and the price of gasoline is measured in dollars. The price elasticity of demand is 0.67. If the price of gasoline was now measured in cents rather than dollars, the price elasticity of demand would now beA) 0.0067.B) 0.67.C) 6.7.D) 67.0.Answer: BTopic: Price Elasti
19、city of DemandSkill: ConceptualQuestion history: Previous edition, Chapter 4AACSB: Reflective Thinking14) A decrease in the price of eggs from $1.50 to $1.30 per dozen resulted in an increase in egg purchases in two cities. In Philadelphia, daily egg purchases increased from 6000 to 8000 dozens; in
20、nearby Dover, Delaware, daily egg purchases increased from 300 to 400 dozens. The price elasticity of demand is thereforeA) lower in the smaller city as would be expected.B) greater in the smaller city as would be expected.C) certainly affected by population differences in different markets.D) the s
21、ame in Philadelphia as in Dover.Answer: DTopic: Calculating ElasticitySkill: AnalyticalQuestion history: Previous edition, Chapter 4AACSB: Analytical Skills15) Dan sells newspapers. Dan says that a 4 percent increase in the price of a newspaper will decrease the quantity of newspapers demanded by 8
22、percent. According to Dan, the demand for newspapers is _.A) inelasticB) unit elasticC) perfectly elasticD) elasticAnswer: DTopic: Calculating ElasticitySkill: ConceptualQuestion history: Previous edition, Chapter 4AACSB: Reflective Thinking16) The price elasticity of demand for furniture is estimat
23、ed at 1.3. This value means a one percent increase in theA) price of furniture will increase the quantity of furniture demanded by 1.3 percent.B) price of furniture will decrease the quantity of furniture demanded by 1.3 percent. C) quantity of furniture demanded will decrease the price of furniture
24、 by 1.3 percent.D) quantity of furniture demanded will increase the price of furniture by 1.3 percent.Answer: BTopic: Calculating ElasticitySkill: ConceptualQuestion history: Previous edition, Chapter 4AACSB: Analytical Skills17) The price elasticity of demand for oil is estimated at 0.05. This valu
25、e means a 10 percent increase in theA) quantity of oil demanded will result from a 0.5 percent increase in the price of oil. B) quantity of oil demanded will result from a 0.5 percent decrease in the price of oil. C) price of oil will increase the quantity of oil demanded by 0.5 percent.D) price of
26、oil will decrease the quantity of oil demanded by 0.5 percent. Answer: DTopic: Calculating ElasticitySkill: ConceptualQuestion history: Previous edition, Chapter 4AACSB: Analytical Skills18) If a 6 percent decrease in the price leads to a 5 percent increase in the quantity demanded, the price elasti
27、city of demand isA) 0.30.B) 0.60.C) 0.83.D) 1.20.Answer: CTopic: Calculating ElasticitySkill: AnalyticalQuestion history: Modified 10th editionAACSB: Analytical Skills19) A 10 percent increase in the quantity of spinach demanded results from a 20 percent decline in its price. The price elasticity of
28、 demand for spinach isA) 0.5.B) 2.0.C) 10.0.D) 20.0.Answer: ATopic: Calculating ElasticitySkill: AnalyticalQuestion history: Previous edition, Chapter 4AACSB: Analytical Skills20) A 20 percent increase in the quantity of pizza demanded results from a 10 percent decline in its price. The price elasti
29、city of demand for pizza isA) 0.5.B) 2.0.C) 10.0.D) 20.0.Answer: BTopic: Calculating ElasticitySkill: AnalyticalQuestion history: Previous edition, Chapter 4AACSB: Analytical Skills21) If a 20 percent increase in the price of a used car results in a 10 percent decrease in the quantity of used cars d
30、emanded, then the price elasticity of demand equalsA) 0.5.B) 1.0.C) 2.0.D) 10.0.Answer: ATopic: Calculating ElasticitySkill: AnalyticalQuestion history: Previous edition, Chapter 4AACSB: Analytical Skills22) If the price of a movie ticket increases by 4 percent and the quantity of movies demanded fa
31、lls by 2 percent, the price elasticity of demand isA) 2.0.B) 4.0.C) 0.5.D) some amount that cannot be determined without more information.Answer: CTopic: Calculating ElasticitySkill: AnalyticalQuestion history: Previous edition, Chapter 4AACSB: Analytical Skills23) If the price of a burger decreases
32、 by 5 percent and as a result the quantity of burgers demanded increases by 8 percent, the price elasticity of demand equalsA) 0.60.B) 0.40.C) 1.60.D) 0.625.Answer: CTopic: Calculating ElasticitySkill: AnalyticalQuestion history: Previous edition, Chapter 4AACSB: Analytical Skills24) If the quantity
33、 demanded of hamburgers increases by 20 percent when the price decreases by 5 percent, then the price elasticity of demand isA) 0.25.B) 4.0.C) 20.0.D) 5.0.Answer: BTopic: Calculating ElasticitySkill: AnalyticalQuestion history: Previous edition, Chapter 4AACSB: Analytical Skills25) Suppose that the
34、quantity of pizza demanded decreased by 15 percent after an increase in price of 10 percent. What is the price elasticity of demand for pizza?A) 1.50.B) 0.67.C) -1.50.D) -0.67.Answer: ATopic: Calculating ElasticitySkill: AnalyticalQuestion history: Previous edition, Chapter 4AACSB: Analytical Skills
35、26) When the price of a movie ticket increases from $5 to $7, the quantity of tickets demanded decreases from 600 to 400 a day. What is the price elasticity of demand for movie tickets?A) 0.83B) 1.20C) 1.00D) 2.32Answer: BTopic: Calculating ElasticitySkill: AnalyticalQuestion history: Previous editi
36、on, Chapter 4AACSB: Analytical Skills27) Suppose a rise in the price of peaches from $5.50 to $6.50 per bushel decreases the quantity demanded from 12,500 to 11,500 bushels. The price elasticity of demand isA) 0.5.B) 1.0.C) 2.0.D) 1000.0.Answer: ATopic: Calculating ElasticitySkill: AnalyticalQuestio
37、n history: Previous edition, Chapter 4AACSB: Analytical Skills28) Taco Bells economists determine that the price elasticity of demand for their tacos is 2.0. So, if Taco Bell raises the price of its tacos by 6.0 percent, the quantity demanded will decrease by _ percent.A) 2.0B) 3.0C) 6.0D) 12.0Answe
38、r: DTopic: Calculating ElasticitySkill: AnalyticalQuestion history: Previous edition, Chapter 4AACSB: Analytical Skills29) Using average price and average quantity, calculate the price elasticity of demand if a price rise from $8 to $10 and decreases the quantity demanded from 20 units to 15 units.
39、The price elasticity of demand equalsA) 2.5.B) 1.29.C) 0.78.D) 0.06Answer: BTopic: Calculating ElasticitySkill: AnalyticalQuestion history: Previous edition, Chapter 4AACSB: Analytical Skills30) A local pizzeria raised its price from $9 to $11 for each pizza and the sales of its pizza decreased from
40、 150 to 100 per day. What is the price elasticity of demand in this case?A) 1/2B) -2C) -1/2D) 2Answer: DTopic: Calculating ElasticitySkill: AnalyticalQuestion history: Previous edition, Chapter 4AACSB: Analytical Skills31) Using the average price and average quantity, what is the elasticity of deman
41、d for oranges when the price of oranges changes from $200 to $160 per bushel and so the quantity demanded changes from 1000 to 1400 bushels?A) 1.5B) 0.1C) 10.0D) 0.67Answer: ATopic: Calculating ElasticitySkill: AnalyticalQuestion history: Previous edition, Chapter 4AACSB: Analytical Skills32) If the
42、 price of a soda increases from 75 to $1.00 and as a result the quantity demanded of sodas decreases from 10 to 9 per week, the elasticity of demand for sodas equalsA) 2.72.B) 0.37.C) 0.83.D) 1.20.Answer: BTopic: Calculating ElasticitySkill: AnalyticalQuestion history: Previous edition, Chapter 4AAC
43、SB: Analytical Skills33) When the price of oranges increases from $4 to $6 per bag, the quantity demanded of oranges decreases from 800 bags to 700 bags. The price elasticity of demand over this price range is equal toA) 3.B) 3/7 or 0.4286.C) 1/3 or 0.3333.D) 1/4 or 0.25.Answer: CTopic: Calculating
44、ElasticitySkill: AnalyticalQuestion history: Previous edition, Chapter 4AACSB: Analytical Skills34) Florida State University has just lowered the price of its season football tickets from $350.00 to $300.00. As a result, there was an increase in the number of season tickets purchased from 43,000 to
45、47,000. The price elasticity of demand for season tickets equalsA) 1.71.B) 1.58.C) 0.71.D) 0.58.Answer: DTopic: Calculating ElasticitySkill: AnalyticalQuestion history: Previous edition, Chapter 4AACSB: Analytical Skills35) Suppose the quantity demanded is 5 units when the price is $1.00. If the pri
46、ce rises to $2.00, the quantity demanded falls to 3 units. The price elasticity of demand isA) 0.5.B) 0.75.C) 1.33.D) 2.00.Answer: BTopic: Calculating ElasticitySkill: AnalyticalQuestion history: Previous edition, Chapter 4AACSB: Analytical Skills36) A fall in the price of lemons from $10.50 to $9.50 per bushel increases the quantity demanded from 19,200 to 20,800 bushels. The price elasticity of demand isA) 0.80.B) 1.20.C) 1.25.D) 8.00.Answer: ATopic: Calculating ElasticitySkill:
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