Question

Demand is inelastic if _____ Select one: a. the absolute value of price elasticity is equal to 1. b. the percentage change in price is greater than the percentage change in quantity demanded. c. the absolute value of price elasticity is greater than 1. d. the percentage change in price is less than the percentage change in quantity demanded. e. the percentage change in price is equal to the percentage change in quantity demanded.

Answer #1

Demand is said to be inelastic when the percentage change in Quantity demanded is less than percent change in price.

Option A is incorrect because the absolute value of elasticity is 1 when the percentage change in price is equal to percentage change in Quantity demanded which is called unit elastic.

Option B is Correct because if percentage change in price is more than percentage change in demand,it means that the the percentage change in Quantity demanded is less than percent change in price which is called Inelastic demand.

Option C is incorrect because if the absolute value of price elasticity is greater than 1 ,it means percentage change in Quantity demanded is more than percent change in price which means that the demand is Elastic.

Option D is included because if the percentage change in price is less than the percentage change in quantity demanded,it means that the percentage change in Quantity demanded is more than the percentage change in price which means that the demand is Elastic

Option E is incorrect because if he percentage change in price is equal to the percentage change in quantity demanded.,it means that the demand is Unit Elastic

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

If the absolute value of the price elasticity of demand for DVD
movies is 0.8 then the elasticity of demand of the DVD for the
movie Avengers: Endgame should be:
a) equal to 1 in absolute value.
b) less then 0.8 in absolute value.
c) greater than 0.8 in absolute value.
d) equal to zero because the DVD of this movie has been out for
several years.

The cross-price elasticity of demand measures the
absolute change in the quantity demanded of one good divided by
the absolute change in the price of another good.
percentage change in the price of one good divided by the
percentage change in the quantity demanded of another good.
percentage change in the quantity demanded of one good in one
location divided by the price of the same good in another
location.
percentage change in the quantity demanded of one good divided...

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

Which of the following is not a characteristic of a commodity
with inelastic demand?
a) Total revenue decreases if price rises.
b) The absolute value of the price elasticity coefficient is
less than one.
c) Buyers are relatively not so responsive to price changes.
d) The relative change in quantity demanded is less than the
relative change in price.

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

3) Multipole choice: When you compare the absolute value of the
price elasticity of demand for most products [Hint, oil is one
product that works this way.] in the long run (20 years) vs.
absolute value of the elasticity of demand for the products in the
short run (6 months), the absolute value of the long run price
elasticity of demand is… [Note: we consider demand elasticity
positive, even though they’re technically negative. In other words,
for purposes of this...

1.If price rises by 20% and quantity demanded of rice falls by
100 pounds, the elasticity of demand is : (1 point)
a. greater than 1
b. equal to -5
c. equal to -20
d. cannot be determined without additional information.
2.If quantity supplied responds only slightly to a change in
price, then: (1 point)
a. Supply is elastic
b. An increase in price will shift the supply curve to a large
extent
c. Supply is inelastic
d. Supply is...

(60)A perfectly inelastic demand curve has an elasticity
coefficient of:
(a)1
(b)0.25
(c)∞
(d)None of the above
Akal mn wahed
Extra Credit Questions-Optional
(61)If the percentage change in the quantity supplied of
a good is less than the percentage change in price, price
elasticity of supply is:
(a)Inelastic
(b)Perfectly inelastic
(c)Elastic
(d)Unitary elastic
(62)If the percentage change in the quantity demanded of
a good is equal to the percentage change in price, price elasticity
of demand is:
(a)Inelastic
(b)Perfectly inelastic...

Taking the absolute value of the cross-price elasticity of
demand is incorrect because it would:
remove the ability to tell whether the two products have
inelastic demand or elastic demand.
cause the value of the cross-price elasticity of demand to
become smaller.
remove the ability to tell whether the two products are
substitutes or complements.
cause the value of the cross-price elasticity of demand to
become zero.
The percent change in insulin demanded for any price change is
zero. The...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 17 minutes ago

asked 17 minutes ago

asked 23 minutes ago

asked 28 minutes ago

asked 33 minutes ago

asked 54 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 2 hours ago