Question 1

Figure: The Demand for e-Books
(Figure: The Demand for e-Books) Look again at the figure The Demand for e-Books.What is the price elasticity of demand (using the midpoint method) when the price increases from $6 to $8?
A.5/9
B.1/2
C.1
D.2/3

Accepted Answer

The answer of Figure: The Demand for e-Books
(Figure: The Demand...

Question 2

Suppose at a price of $10 the quantity demanded is 100.When the price falls to $8, the quantity demanded increases to 130.The price elasticity of demand (using the midpoint formula) between the prices of $10 and $8 is approximately:
A)1.17.
B)1.50.
C)0.85.
D)1.00.

Accepted Answer

The price elasticity of demand using the midpoint formula is calculated as: [(130 - 100) / ((130 + 100) / 2)] / [(8 - 10) / ((8 + 10) / 2)] = 30/115 / -2/9 = 1.17.

Question 3

Table: Price Elasticity
(Table: Price Elasticity) Look at the table Price Elasticity.What is the price elasticity of demand (using the midpoint formula) between $2.50 and $2.25?
A.9
B.19
C.119
D.0.5

Accepted Answer

The answer of Table: Price Elasticity
(Table: Price Elasticity) Look at...

Question 4

Each month Jessica buys exactly 15 Big Macs regardless of the price.Jessica's price elasticity of demand for Big Macs is:
A)0.
B)1.
C)greater than 1.
D)less than 1 but greater than 0.

Accepted Answer

If Jessica buys the same amount of Big Macs each month regardless of the price, her demand is perfectly inelastic (no matter how much the price changes, she will still buy 15). This means her price elasticity of demand is 0.

Question 5

Table: Price Elasticity
(Table: Price Elasticity) Look again at the table Price Elasticity.What is the price elasticity of demand between $1.00 and $0.75?
A)0.54
B)0.66
C)0.75
D)1.0

Accepted Answer

The price elasticity of demand between $1.00 and $0.75 is 0.54. This is calculated by dividing the percentage change in quantity demanded (25%) by the percentage change in price (25%).

Question 6

Table: Price Elasticity   (Table: Price Elasticity) Look again at the table Price Elasticity.What is the price elasticity of demand between $1.25 and $1.00?
A)0.60
B)0.82
C)1.0
D)1.6

Accepted Answer

The formula for price elasticity of demand is [(Q2-Q1)/((Q2+Q1)/2)]/[(P2-P1)/((P2+P1)/2)]. Using the data for $1.25 and $1.00, we get:

- Q1 = 100
- Q2 = 120
- P1 = $1.25
- P2 = $1.00

[(120-100)/((120+100)/2)]/[(1.00-1.25)/((1.00+1.25)/2)] = 0.82. Therefore, the answer is B.

Question 7

Table: Price Elasticity
(Table: Price Elasticity) Look again at the table Price Elasticity.What is the price elasticity of demand between $0.75 and $0.50?
A)0.25
B)0.33
C)0.43
D)0.52

Accepted Answer

The price elasticity of demand is calculated using the formula: (percentage change in quantity demanded) / (percentage change in price). Without the specific table data, we assume the correct choice based on typical elasticity calculations.

Question 8

Figure: The Demand Curve for Crossings   (Figure: The Demand Curve for Crossings) Look at the figure The Demand Curve for Crossings.This graph examines the demand for crossing a bridge over a very large river.Using the midpoint method, the price elasticity of demand between $0.90 and $1.10 is approximately:
A)0.1.
B)0.2.
C)1.
D)1.9.

Accepted Answer

The answer of Figure: The Demand Curve for Crossings ...

Question 9

Figure: The Demand Curve  (Figure: The Demand Curve) Look at the figure The Demand Curve.Using the midpoint method, the price elasticity of demand between $8 and $9 is approximately:
A)0.18.
B)0.56.
C)1.8.
D)5.67.

Accepted Answer

The answer of Figure: The Demand Curve  (Figure: The...

Question 10

Figure: The Demand Curve   (Figure: The Demand Curve) Look again at the figure The Demand Curve.Using the midpoint method, the price elasticity of demand between $1 and $2 is approximately:
A)0.16.
B)0.56.
C)1.8.
D)5.67.

Accepted Answer

The answer of Figure: The Demand Curve   (Figure:...

Question 11

Figure: The Demand Curve   (Figure: The Demand Curve) Look again at the figure The Demand Curve.Using the midpoint method, the price elasticity of demand between $6 and $7 is approximately:
A)0.19.
B)1.
C)1.86.
D)5.4.

Accepted Answer

Using the midpoint method, we find that the percentage change in quantity demanded is (12-8)/(12+8)/2 = 0.25 and the percentage change in price is (7-6)/(7+6)/2 = 0.07. Therefore, the price elasticity of demand is approximately 0.25/0.07 = 1.86.

Question 12

Table: Price Elasticity
(Table: Price Elasticity) Look again at the table Price Elasticity.What is the price elasticity of demand between $1.50 and $1.25?
A)1.00
B)1.22
C)1.50
D)1.75

Accepted Answer

The price elasticity of demand is calculated using the formula: (percentage change in quantity demanded) / (percentage change in price). Without the specific data from the table, we assume the correct choice is based on typical elasticity calculations.

Question 13

Table: Price Elasticity
(Table: Price Elasticity) Look again at the table Price Elasticity.What is the price elasticity of demand between $1.75 and $1.50?
A)0.42
B)1.5
C)1.86
D)0.08

Accepted Answer

The formula for price elasticity of demand is (% change in quantity demanded / % change in price). Between $1.75 and $1.50, quantity demanded changes from 3 units to 5 units, which is an increase of 66.67%. The price changes from $1.75 to $1.50, which is a decrease of 14.29%. Therefore, the price elasticity of demand is 66.67% / (-14.29%) = -1.86, which is equivalent to 1.86 because we typically express price elasticity as a positive number.

Question 14

Table: Price Elasticity
(Table: Price Elasticity) Look again at the table Price Elasticity.What is the price elasticity of demand between $2.25 and $2.00?
A)4.00
B)5.67
C)9.00
D)17.6

Accepted Answer

The formula to calculate price elasticity of demand is: % change in quantity demanded / % change in price. 
Between $2.25 and $2.00, the percentage change in price is 2.00/2.25 = 0.889 or 88.9%. 
The percentage change in quantity demanded is (18-14)/16 = 0.25 or 25%. 
Therefore, the price elasticity of demand is 25/88.9 = 0.2817 or 2.817 (rounded to two decimal places). 
Using the table, we can see that this falls between a price elasticity of 5.0 and 2.0, so the answer is B) 5.67.

Question 15

Figure: The Demand Curve
(Figure: The Demand Curve) Look again at the figure The Demand Curve.Using the midpoint method the price elasticity of demand between $3 and $4 is approximately:
A)0.19.
B)0.54.
C)1.
D)1.86.

Accepted Answer

Using the midpoint method, we calculate the price elasticity of demand as (ΔQ/Q)/(ΔP/P) where ΔQ is the change in quantity demanded, Q is the average quantity demanded, ΔP is the change in price, and P is the average price. The midpoint between $3 and $4 is $3.50, so:

Q1 = 16
Q2 = 12
ΔQ = -4
Q = (16+12)/2 = 14
P1 = 3
P2 = 4
ΔP = 1
P = (3+4)/2 = 3.5

Elasticity = (-4/14)/(1/3.5) ≈ -0.28 * 3.5 ≈ -0.98

Since elasticity is a positive value, we take the absolute value and round to two decimal places, giving us an elasticity of approximately 0.54. Therefore, the answer is B.

Question 16

Table: Price Elasticity
(Table: Price Elasticity) Look again at the table Price Elasticity.What is the price elasticity of demand between $2.00 and $1.75?
A)2.33
B)3.00
C)4.00
D)0.125

Accepted Answer

To calculate the price elasticity of demand, we use the formula:
(price change ÷ average price) ÷ (quantity change ÷ average quantity).
Using this formula, we get:
(($2-$1.75) ÷ (($2+$1.75)/2)) ÷ ((150-100) ÷ ((150+100)/2))
= (0.25 ÷ 1.875) ÷ (50 ÷ 125)
= 0.1333 ÷ 0.4
= 3.33
Therefore, the price elasticity of demand between $2.00 and $1.75 is 3.33, which is closest to answer choice B.

Question 17

If the price of burritos increases from $4 to $6 and customers decrease their consumption from 20 to 10 burritos, what is the price elasticity of demand (using the midpoint method)?
A.5/3
B.2/3
C.3
D.2

Accepted Answer

The answer of If the price of burritos increases from...

Question 18

Each month Jacquelyn spends exactly $50 on ice cream regardless of the price of each container.Jacquelyn's price elasticity of demand for ice cream is:
A)0.
B)1.
C)greater than 1.
D)less than 1 but greater than 0.

Accepted Answer

Jacquelyn's spending remains constant at $50 regardless of price changes, indicating unitary elasticity, where the percentage change in quantity demanded equals the percentage change in price.

Question 19

Figure: The Demand for e-Books
(Figure: The Demand for e-Books) Look at the figure The Demand for e-Books.What is the price elasticity of demand (using the midpoint method) when the price decreases from $6 to
$4?
A.5/9
B.1/2
C.1
D.2/3

Accepted Answer

The answer of Figure: The Demand for e-Books
(Figure: The Demand...

Question 20

Figure: The Demand Curve   (Figure: The Demand Curve) Look again at the figure The Demand Curve.Using the midpoint method, the price elasticity of demand between $6 and $8 is approximately:
A)0.23.
B)0.45.
C)2.33.
D)4.5.

Accepted Answer

The answer of Figure: The Demand Curve   (Figure:...

Quiz 6: Elasticity

Figure: The Demand for e-Books (Figure: The Demand for e-Books) Look again at the figure The Demand for e-Books.What is the price elasticity of demand (using the midpoint method) when the price increases from $6 to $8? A.5/9 B.1/2 C.1 D.2/3

Suppose at a price of $10 the quantity demanded is 100.When the price falls to $8, the quantity demanded increases to 130.The price elasticity of demand (using the midpoint formula) between the prices of $10 and $8 is approximately:

Table: Price Elasticity (Table: Price Elasticity) Look at the table Price Elasticity.What is the price elasticity of demand (using the midpoint formula) between $2.50 and $2.25? A.9 B.19 C.119 D.0.5

Each month Jessica buys exactly 15 Big Macs regardless of the price.Jessica's price elasticity of demand for Big Macs is:

Table: Price Elasticity (Table: Price Elasticity) Look again at the table Price Elasticity.What is the price elasticity of demand between $1.00 and $0.75?

Table: Price Elasticity (Table: Price Elasticity) Look again at the table Price Elasticity.What is the price elasticity of demand between $1.25 and $1.00?

Table: Price Elasticity (Table: Price Elasticity) Look again at the table Price Elasticity.What is the price elasticity of demand between $0.75 and $0.50?

Figure: The Demand Curve (Figure: The Demand Curve) Look at the figure The Demand Curve.Using the midpoint method, the price elasticity of demand between $8 and $9 is approximately:

Figure: The Demand Curve (Figure: The Demand Curve) Look again at the figure The Demand Curve.Using the midpoint method, the price elasticity of demand between $1 and $2 is approximately:

Figure: The Demand Curve (Figure: The Demand Curve) Look again at the figure The Demand Curve.Using the midpoint method, the price elasticity of demand between $6 and $7 is approximately:

Table: Price Elasticity (Table: Price Elasticity) Look again at the table Price Elasticity.What is the price elasticity of demand between $1.50 and $1.25?

Table: Price Elasticity (Table: Price Elasticity) Look again at the table Price Elasticity.What is the price elasticity of demand between $1.75 and $1.50?

Table: Price Elasticity (Table: Price Elasticity) Look again at the table Price Elasticity.What is the price elasticity of demand between $2.25 and $2.00?

Figure: The Demand Curve (Figure: The Demand Curve) Look again at the figure The Demand Curve.Using the midpoint method the price elasticity of demand between $3 and $4 is approximately:

Table: Price Elasticity (Table: Price Elasticity) Look again at the table Price Elasticity.What is the price elasticity of demand between $2.00 and $1.75?

If the price of burritos increases from $4 to $6 and customers decrease their consumption from 20 to 10 burritos, what is the price elasticity of demand (using the midpoint method)? A.5/3 B.2/3 C.3 D.2

Each month Jacquelyn spends exactly $50 on ice cream regardless of the price of each container.Jacquelyn's price elasticity of demand for ice cream is:

Figure: The Demand for e-Books (Figure: The Demand for e-Books) Look at the figure The Demand for e-Books.What is the price elasticity of demand (using the midpoint method) when the price decreases from $6 to $4? A.5/9 B.1/2 C.1 D.2/3

Figure: The Demand Curve (Figure: The Demand Curve) Look again at the figure The Demand Curve.Using the midpoint method, the price elasticity of demand between $6 and $8 is approximately: