# Microeconomics Study Set 20

## Quiz 6 :Elasticity: The Responsiveness of Demand and Supply

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Price elasticity of demand measures
Free
Multiple Choice

C

Suppose the value of the price elasticity of demand is -3.What does this mean?
Free
Multiple Choice

B

If the percentage increase in price is 15 percent and the value of the price elasticity of demand is -3,then quantity demanded
Free
Multiple Choice

C

The price elasticity of demand for Stork ice cream is -4.Suppose you're told that following a price increase,quantity demanded fell by 10 percent.What was the percentage change in price that brought about this change in quantity demanded?
Multiple Choice
If demand is inelastic,the absolute value of the price elasticity of demand is
Multiple Choice
A demand curve which is ________ represents perfectly inelastic demand,and a demand curve which is ________ represents inelastic demand.
Multiple Choice
Jenna runs a small boutique in Capitola.She tells one of her suppliers that she is willing to pay $6 for a pair of wool hand warmers and not a dime more.On the basis of this information,what can you conclude about her price elasticity of demand for wool hand warmers? Multiple Choice Answer: Seth is a competitive body builder.He says he has to have his 12-oz package of protein powder to "feed his muscles" every day.On the basis of this information,what can you conclude about his price elasticity of demand for protein powder? Multiple Choice Answer: Figure 6-1 -Refer to Figure 6-1.The demand curve on which elasticity changes at every point is given in Multiple Choice Answer: Refer to Figure 6-1.A perfectly elastic demand curve is shown in Multiple Choice Answer: Refer to Figure 6-1.A perfectly inelastic demand curve is shown in Multiple Choice Answer: In September 2012,the average price of gasoline in the United States was$3.91 per gallon and consumers bought 5 percent less gasoline than they had during September 2011,when the average price was $3.66 per gallon.Based on these numbers,what was the price elasticity of demand for gasoline from September 2011 to September 2012? Multiple Choice Answer: If 50 units are sold at a price of$20 and 80 units are sold at a price of $15,what is the absolute value of the price elasticity of demand? Use the midpoint formula. Multiple Choice Answer: Figure 6-2 -Refer to Figure 6-2.The absolute value of the price elasticity of demand at points a and b is 1.What is the value of Pb? Multiple Choice Answer: Suppose a hurricane decreased the supply of oranges so that the price of oranges rose from$120 a ton to $180 a ton and quantity sold decreased from 800 tons to 240 tons.What is the absolute value of the price elasticity of demand? Multiple Choice Answer: Figure 6-3 -Refer to Figure 6-3.Using the midpoint formula,calculate the absolute value of the price elasticity of demand between e and f. Multiple Choice Answer: Jaycee Jeans sold 40 pairs of jeans at a price of$40.When it lowered its price to \$20,the quantity sold increased to 60 pairs.Calculate the absolute value of the price elasticity of demand.Use the midpoint formula.