Question 1

Figure: The Demand for Shirts
   (Figure: The Demand for Shirts) Look at the figure.The Demand for Shirts.At a price of $40, total revenue is: 
A.$40.
B.$200.
C.$4,000.
D.$8,000.

Accepted Answer

The answer of Figure: The Demand for Shirts
  ...

Question 2

The price elasticity of demand along a demand curve with a constant slope:
A.is equal to the slope.
B.is greater than the slope.
C.is less than the slope.
D.increases in absolute value as the price rises.

Accepted Answer

The price elasticity of demand measures the responsiveness of quantity demanded to a change in price. Along a demand curve with a constant slope, the elasticity varies at different points: it increases in absolute value as we move up the curve (i.e., as the price rises), because the percentage change in quantity becomes larger relative to the percentage change in price.

Question 3

The price elasticity of demand along a demand curve with a constant slope:
A)is equal to the slope.
B)is greater than the slope.
C)is less than the slope.
D)decreases in absolute value as quantity demanded rises.

Accepted Answer

The price elasticity of demand measures the responsiveness of quantity demanded to a change in price. Along a linear demand curve with a constant slope, the elasticity varies at different points. It decreases in absolute value as we move down the curve (i.e., as quantity demanded increases) because the percentage change in quantity demanded relative to the percentage change in price decreases.

Question 4

Figure: The Demand for Shirts
   (Figure: The Demand for Shirts) Look at the figure.If the price is below , demand is
inelastic. 
A.$10
B.$20
C.$30
D.$40

Accepted Answer

The answer of Figure: The Demand for Shirts
  ...

Question 5

On a linear demand curve:
A.demand is elastic at high prices.
B.demand is inelastic at high prices.
C.elasticity is the same at all points on the demand curve.
D.demand is elastic at low prices.

Accepted Answer

On a linear demand curve, demand is elastic at high prices because as the price decreases from a high point, the percentage change in quantity demanded is greater than the percentage change in price, indicating elasticity.

Question 6

Figure: The Demand for Shirts
  (Figure: The Demand for Shirts) Look at the figure The Demand for Shirts.Using the midpoint method, the price elasticity of demand for the segment BC is: 
A.less than the price elasticity of demand for the segment AB.zero.
B.greater than 3.
C.less than the price elasticity of demand for the segment CD.

Accepted Answer

The answer of Figure: The Demand for Shirts
  (Figure:...

Question 7

Figure: The Demand Curve for Bridge Crossings
  (Figure: The Demand Curve for Bridge Crossings) Look again at the figure The Demand Curve for Bridge Crossings.Demand is price between $0.90 and $1.10, since total
revenue ________ when the price _. 
A.elastic; increases; decreases
B.inelastic; stays the same; decreases
C.unit-elastic; stays the same; increases
D.inelastic; increases; increases

Accepted Answer

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

Question 8

A linear demand curve:
A.has a constant price elasticity of demand.
B.has a price elasticity of demand equal to one.
C.has a calculated price elasticity of demand that is positive.
D.can have both elastic and inelastic price elasticities of demand.

Accepted Answer

The answer of A linear demand curve:
A.has a constant price...

Question 9

On a linear demand curve, the price elasticity of demand at higher prices will be:
A.price-inelastic.
B.price-elastic.
C.price unit-elastic.
D.negative.

Accepted Answer

The answer of On a linear demand curve, the price...

Question 10

Figure: The Demand for Shirts   (Figure: The Demand for Shirts) Look at the figure The Demand for Shirts.Using the midpoint method, the price elasticity of demand for the segment DE is:
A)-0.3.
B)0.7.
C)1.
D)greater than 10.

Accepted Answer

The answer of Figure: The Demand for Shirts  ...

Question 11

Figure: The Market for e-Books
(Figure: The Market for e-Books) If the price of e-Books decreases from $6 to $4, total revenue changes from _______ to _______, which means that demand is _.
A.$240; $200; elastic
B.$240; $200; inelastic
C.$180; $240; elastic
D.$40 to $50; inelastic

Accepted Answer

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

Question 12

Figure: The Demand for Shirts  (Figure: The Demand for Shirts) Look at the figure The Demand for Shirts.The price elasticity of demand, using the midpoint method, for the segment FG is:
A)0.
B)0.09.
C)0.5.
D)greater than 1.

Accepted Answer

The answer of Figure: The Demand for Shirts  (Figure:...

Question 13

Figure: The Market for e-Books
(Figure: The Market for e-Books) If the price of e-Books increases from $6 to $8, total revenue _____________ which means that demand is _.
A.increases; elastic
B.decreases; inelastic
C.remains constant; elastic
D.remains constant; unit elastic

Accepted Answer

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

Question 14

Figure: The Market for e-Books
(Figure: The Market for e-Books) Look at the figure The Market for e-Books.Which of the following statements is correct?
A.The demand schedule is less elastic when the price increases from $4 to $6 than when it increases from $6 to $8.
B.The demand schedule is more elastic when the price increases from $4 to $6 than when it increases from $6 to $8.
C.The demand schedule has the same elasticity when the price increases from $4 to $6 as when it increases from $6 to $8.
D.The demand schedule is unit-elastic when the price increases from $4 to $6 and when it increases from $6 to $8.

Accepted Answer

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

Question 15

Figure: The Demand Curve for Bridge Crossings
   (Figure: The Demand Curve for Bridge Crossings) Look at the figure The Demand Curve for Bridge Crossings.The price elasticity of demand between $0.90 and $1.10 in the figure is: 
A.price-elastic, since the price elasticity is less than 1.
B.price unit-elastic, since the price elasticity is equal to 1.
C.price-elastic, since the price elasticity is a negative number.
D.price-inelastic, since the price elasticity is less than 1.

Accepted Answer

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

Question 16

Figure: The Demand for Shirts
  (Figure: The Demand for Shirts) Look at the figure.At a price of $30, total revenue is ,
and at a price of $10, total revenue is _. 
A.$9,000; $12,000
B.$3,000; $5,000
C.$9,000; $5,000
D.$5,000; $9,000

Accepted Answer

The answer of Figure: The Demand for Shirts
  (Figure:...

Question 17

Figure: The Demand for Shirts
   (Figure: The Demand for Shirts) Look at the figure The Demand for Shirts.Using the midpoint method, the price elasticity of demand for the segment AB is: 
A.less than the price elasticity of demand for the segment BC.
B.less than the price elasticity of demand for the segment EF.
C.zero.
D.greater than the price elasticity of demand for the segment BC.

Accepted Answer

The answer of Figure: The Demand for Shirts
  ...

Question 18

Figure: The Demand for Shirts
  (Figure: The Demand for Shirts) Look at the figure The Demand for Shirts.Using the midpoint method, the price elasticity of demand for the segment EF is: 
A.greater than 1.
B.less than the price elasticity of demand for segment FG.
C.less than the price elasticity of demand for segment DE.
D.greater than the price elasticity of demand for segment AB.

Accepted Answer

The answer of Figure: The Demand for Shirts
  (Figure:...

Question 19

Figure: The Demand for Shirts   (Figure: The Demand for Shirts) Look at the figure The Demand for Shirts.Using the midpoint method, the price elasticity of demand for the segment CD is:
A)0.71.
B)-1.
C)1.4.
D)0.29.

Accepted Answer

Using the midpoint method, the price elasticity of demand for the segment CD is calculated as:
((25-20)/(25+20)/2) ÷ ((140-100)/(140+100)/2) = 0.71 ÷ 0.5 = 1.4
Since the result is greater than 1, the demand for shirts in this segment is elastic, indicating that a slight change in price will result in a greater change in quantity demanded.

Question 20

Figure: The Demand for Shirts
   (Figure: The Demand for Shirts) Look at the figure.Total revenue is maximized if the price is 
A.$30
B.$40
C.$50
D.$60

Accepted Answer

The answer of Figure: The Demand for Shirts
  ...

Quiz 6: Elasticity

Figure: The Demand for Shirts (Figure: The Demand for Shirts) Look at the figure.The Demand for Shirts.At a price of $40, total revenue is: A.$40. B.$200. C.$4,000. D.$8,000.

The price elasticity of demand along a demand curve with a constant slope: A.is equal to the slope. B.is greater than the slope. C.is less than the slope. D.increases in absolute value as the price rises.

The price elasticity of demand along a demand curve with a constant slope:

Figure: The Demand for Shirts (Figure: The Demand for Shirts) Look at the figure.If the price is below , demand is inelastic. A.$10 B.$20 C.$30 D.$40

On a linear demand curve: A.demand is elastic at high prices. B.demand is inelastic at high prices. C.elasticity is the same at all points on the demand curve. D.demand is elastic at low prices.

A linear demand curve: A.has a constant price elasticity of demand. B.has a price elasticity of demand equal to one. C.has a calculated price elasticity of demand that is positive. D.can have both elastic and inelastic price elasticities of demand.

On a linear demand curve, the price elasticity of demand at higher prices will be: A.price-inelastic. B.price-elastic. C.price unit-elastic. D.negative.

Figure: The Demand for Shirts (Figure: The Demand for Shirts) Look at the figure The Demand for Shirts.Using the midpoint method, the price elasticity of demand for the segment DE is:

Figure: The Market for e-Books (Figure: The Market for e-Books) If the price of e-Books decreases from $6 to $4, total revenue changes from _ to _, which means that demand is _. A.$240; $200; elastic B.$240; $200; inelastic C.$180; $240; elastic D.$40 to $50; inelastic

Figure: The Demand for Shirts (Figure: The Demand for Shirts) Look at the figure The Demand for Shirts.The price elasticity of demand, using the midpoint method, for the segment FG is:

Figure: The Market for e-Books (Figure: The Market for e-Books) If the price of e-Books increases from $6 to $8, total revenue _____________ which means that demand is _. A.increases; elastic B.decreases; inelastic C.remains constant; elastic D.remains constant; unit elastic

Figure: The Demand for Shirts (Figure: The Demand for Shirts) Look at the figure.At a price of $30, total revenue is , and at a price of $10, total revenue is _. A.$9,000; $12,000 B.$3,000; $5,000 C.$9,000; $5,000 D.$5,000; $9,000

Figure: The Demand for Shirts (Figure: The Demand for Shirts) Look at the figure The Demand for Shirts.Using the midpoint method, the price elasticity of demand for the segment CD is:

Figure: The Demand for Shirts (Figure: The Demand for Shirts) Look at the figure.Total revenue is maximized if the price is A.$30 B.$40 C.$50 D.$60

Quiz 6: Elasticity

Figure: The Demand for Shirts (Figure: The Demand for Shirts) Look at the figure.The Demand for Shirts.At a price of $40, total revenue is: A.$40. B.$200. C.$4,000. D.$8,000.

The price elasticity of demand along a demand curve with a constant slope: A.is equal to the slope. B.is greater than the slope. C.is less than the slope. D.increases in absolute value as the price rises.

The price elasticity of demand along a demand curve with a constant slope:

Figure: The Demand for Shirts (Figure: The Demand for Shirts) Look at the figure.If the price is below , demand is inelastic. A.$10 B.$20 C.$30 D.$40

On a linear demand curve: A.demand is elastic at high prices. B.demand is inelastic at high prices. C.elasticity is the same at all points on the demand curve. D.demand is elastic at low prices.

A linear demand curve: A.has a constant price elasticity of demand. B.has a price elasticity of demand equal to one. C.has a calculated price elasticity of demand that is positive. D.can have both elastic and inelastic price elasticities of demand.

On a linear demand curve, the price elasticity of demand at higher prices will be: A.price-inelastic. B.price-elastic. C.price unit-elastic. D.negative.

Figure: The Demand for Shirts (Figure: The Demand for Shirts) Look at the figure The Demand for Shirts.Using the midpoint method, the price elasticity of demand for the segment DE is:

Figure: The Market for e-Books (Figure: The Market for e-Books) If the price of e-Books decreases from $6 to $4, total revenue changes from _______ to _______, which means that demand is _. A.$240; $200; elastic B.$240; $200; inelastic C.$180; $240; elastic D.$40 to $50; inelastic

Figure: The Demand for Shirts (Figure: The Demand for Shirts) Look at the figure The Demand for Shirts.The price elasticity of demand, using the midpoint method, for the segment FG is:

Figure: The Market for e-Books (Figure: The Market for e-Books) If the price of e-Books increases from $6 to $8, total revenue _____________ which means that demand is _. A.increases; elastic B.decreases; inelastic C.remains constant; elastic D.remains constant; unit elastic

Figure: The Demand for Shirts (Figure: The Demand for Shirts) Look at the figure.At a price of $30, total revenue is , and at a price of $10, total revenue is _. A.$9,000; $12,000 B.$3,000; $5,000 C.$9,000; $5,000 D.$5,000; $9,000

Figure: The Demand for Shirts (Figure: The Demand for Shirts) Look at the figure The Demand for Shirts.Using the midpoint method, the price elasticity of demand for the segment CD is:

Figure: The Demand for Shirts (Figure: The Demand for Shirts) Look at the figure.Total revenue is maximized if the price is A.$30 B.$40 C.$50 D.$60

Figure: The Market for e-Books (Figure: The Market for e-Books) If the price of e-Books decreases from $6 to $4, total revenue changes from _ to _, which means that demand is _. A.$240; $200; elastic B.$240; $200; inelastic C.$180; $240; elastic D.$40 to $50; inelastic