Question

1.

The Price Elasticity of Demand for a good is −0.78. Which of the following describes the Price Elasticity of Demand?

Group of answer choices

Elastic

Inelastic

Unit elastic

Perfectly elastic

2.

The Price Elasticity of Demand for a good is −1.11. Which of the following describes the Price Elasticity of Demand?

Group of answer choices

Elastic

Inelastic

Unit elastic

Perfectly elastic

Answer #1

1

Demand curve shows the relationship between price and quantity demanded

generally there are three types demand-

elastic demand ,inelastic and unit elastic demand

if the value of price elasticity of demand is less than 1 then the demand is considered as inelastic demand

inelastic demand is that about demand in which even there is very high change in the price can causes very low change in the quantity demand

The answer here is option B

2

As explained above if the value is greater than one then the demand is considered as elastic demand

elastic demand is that type demand in which even there is a small change in the price can causes heavy change in the quantity demanded

answer is option A

Assume the price elasticity of demand for a good is –1.23. The
demand for this good is _______ which means the percentage change
in quantity demanded (in absolute value) is _______ the percentage
change in price (in absolute value).
Group of answer choices
elastic, larger than
elastic, smaller than
inelastic, smaller than
inelastic, larger than

Categories of Price Elasticity of Demand
For each of the following values for price elasticity of demand,
indicate whether demand is elastic, inelastic, perfectly elastic,
perfectly inelastic, or unit elastic. Also, indicate (increase,
decrease, no effect) what would happen to total revenue if a firm
raised the price in each elasticity range.
Price Elasticity of Demand
equals
Descriptionn of Elasticity
Total Revenue Change
-2.5
-1.0
-0.8
-infinity
0

Price Elasticity of Demand for good X: −0.34
Income Elasticity of Demand for good X: 0.56
Cross Price Elasticity of Demand for goods X and Y: 0.04
Given the information above, determine the following:
1. whether good X is elastic, unit elastic, or inelastic
2. whether good X follows the “law” of demand
3. whether good X is normal or inferior
4. whether good X is a luxury or a necessity
5. whether good X and good Y are complements,...

From the following quotations, what, if anything, can you
conclude about elasticity of demand?
a. "Good weather resulted in record wheat harvests and sent
wheat prices tumbling. The result has been disastrous for many
wheat farmers."
A.
The demand has unit elasticity.
B.
The demand is inelastic.
C.
The demand is elastic.
D.
This quotation tells nothing about the elasticity of demand.
b. "Ridership always went up when bus fares came down, but the
increased patronage never was enough to...

If the Price Elasticity of Demand is -1/2, we can say that:
Demand is inElastic
Demand is Elastic
Demand is perfectly Elastic
Demand is perfectly inElastic

The value of the price elasticity of demand for good y is
equal to -2.0 this would imply that the price elasticity of demand
for good y is:
Select one:
a. inelastic
b. unit elastic
c. the elasticity cannot be determined with the information
given
d. elastic

If a good is considered a necessity, we can expect the Price
Elasticity of Demand (PED) to be
Highly elastic
Highly inelastic
Unit elastic
Infinite
None of the above
When PED is highly inelastic, a price increase will result
in
An decrease in total revenue
A movement toward a less elastic demand curve
No change in total revenue
An increase in total revenue
The quantity effect
If you were shirking during your group study session for this
exam then you...

In each case below, what is the value of the price elasticity
of demand? Is demand perfectly inelastic, inelastic, unit elastic,
elastic or perfectly elastic?
Price falls by 10%, quantity demanded rises by 8%
Price rises by 3%, quantity demanded falls by 3%
Price rises by 1%, quantity demanded falls by 5%
Price rises by 5%, quantity demanded collapses to zero
Price falls by 2%, quantity demanded does not change

7)
Suppose a $2/unit tax is placed on a good. If the original
equilibrium is (P = $13, Q = 500) and the new equilibrium is (P =
$14.50, Q = 300), what is the producer tax burden?
Group of answer choices
a $1000
b $150
c $450
d $600
8)
Which of the following is consistent with a demand curve that
shows a larger percent change in price than its percent change in
quantity?
Group of answer choices
a...

1) The income elasticity of demand for Good Z is –0.2, while the
cross-price elasticity of demand between Good Z and Good Y is 1.63.
Which of the following statements is correct regarding Good Z?
Group of answer choices
Good Z is a inferior good, and Goods Z and Y are
complements.
Good Z is an inferior good, and Goods Z and Y are
substitutes.
Good Z is a normal good, and Goods Z and Y are complements.
Good Z...

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