Question

If the demand for umbrellas is price elastic,

Group of answer choices

a percentage change of quantity demanded of umbrellas will be greater than the percentage change of price

a percentage change of quantity demanded of umbrellas will be less than the percentage change of price

a percentage change of quantity demanded of umbrellas will be equal to the percentage change of price

no change of quantity demanded of umbrellas will happen as a result of a change in price

Answer #1

**Price elasticity** measures the responsiveness of
the quantity demanded or supplied of a good to a change in its
price. It is computed as the percentage change in quantity demanded
or supplied divided by the percentage change in price.

*Elastic* demand or supply curves indicate that the
quantity demanded or supplied responds to price changes in a
greater than proportional manner. So If the demand for umbrellas is
price elastic, then a percentage change of quantity demanded of
umbrellas will be greater than the percentage change of price.

So A part is a correct answer

QUESTION 21
If the percentage change in quantity demanded is greater than
the percentage change in price for good A, then the demand for good
A is
a.
inelastic.
b.
unit elastic.
c.
elastic.
d.
perfectly inelastic.
QUESTION 22
If the percentage change in quantity demanded is less than the
percentage change in price for good B, then the demand for good B
is
a.
inelastic.
b.
unit elastic.
c.
elastic.
d.
perfectly elastic.
QUESTION 23
If the percentage change...

If the percentage change in
price is 10 percent and the demand is elastic, how would the
quantity demanded percentage change?
If a decrease in price
increases total revenue, what can you determine about the
elasticity of demand for the good?

When the demand is elastic, the percentage change in quantity is
(greater/smaller) than the percentage change in price, so when the
price falls, the total revenue (increases/decreases).

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

1)The price elasticity of demand for candles is __________
because as the price of candles rises by 21%, the quantity demanded
of candles falls by 14%.
Group of answer choices
a)inelastic
b)none of the other three answers
c)unitary elastic
d)elastic
2) If the % change in the quantity demanded of bicycles is
greater than the % change in the price of bicycles, then bicycles
are __________ .
Group of answer choices
a)Inelastic
b)Unitary elastic
c)Elastic
d)Infinitely elastic
4)All of the...

Assuming a linear demand curve, higher prices would result
in:
Group of answer choices
less price elastic demand.
more price elastic demand.
a decrease in demand.
none of these.

1.
If demand is inelastic, the percentage change in price is
greater than the resulting percentage change in quantity
demanded
a. True
b. False
2.
Price elasticity is 1 at the midpoint of a linear
downward-sloping demand curve.
a. True
b. False

The
demand for a good is said to be___ when the percentage change in
quantity demand is greater than the percentage change in price
-perfect elastic
-inelastic
-unit elastic
-elastic
-perfectly inelastic

Cross-price elasticity of demand is calculated as
the
total percentage change in quantity demanded divided by the total
percentage change in price.
percentage change in the price of good 1 divided by the percentage
change in the price of good 2.
percentage change in quantity demanded divided by the percentage
change in income.
percentage change in quantity demanded of good 1 divided by the
percentage change in the price of good 2.

The price elasticity of demand measures:
Select one:
a. the percentage change in quantity demanded of a good in
response to a one percentage change in
income
b. none of the above
c. the change in the number of units demanded of a good in
response to a one percentage change in
its price
d. the percentage change in quantity demanded of a good in
response to a one dollar change in its
price

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