#1
Which of the following factors does NOT influence demand elasticity?
Availability of substitutes
Time horizon
Consumer preferences
Government regulations
#2
If a small change in price leads to a large change in quantity demanded, what type of demand elasticity is exhibited?
Inelastic demand
Elastic demand
Unitary elastic demand
Perfectly elastic demand
#3
Which of the following statements accurately describes elastic demand?
A small change in price leads to a large change in quantity demanded.
A large change in price leads to a small change in quantity demanded.
Changes in price have no effect on quantity demanded.
Quantity demanded is perfectly responsive to changes in price.
#4
Which of the following is an example of a product with elastic demand?
Salt
Insulin
Gasoline
Luxury cars
#5
How does the availability of substitutes affect demand elasticity?
More substitutes make demand more inelastic
More substitutes make demand more elastic
Substitutes have no effect on demand elasticity
The effect varies depending on other factors
#6
If the price of a good increases by 10% and the quantity demanded decreases by 5%, what is the price elasticity of demand?
#7
Which of the following would likely have the most inelastic demand?
Cigarettes
Eggs
Bottled water
Smartphones
#8
Which of the following is NOT a determinant of price elasticity of demand?
Income level
Substitutability
Necessity of the good
Advertising expenses
#9
How does the time horizon affect the price elasticity of demand?
Longer time horizons tend to make demand more elastic.
Shorter time horizons tend to make demand more elastic.
Time horizon has no effect on demand elasticity.
Time horizon makes demand perfectly inelastic.
#10
What is the formula for calculating the price elasticity of demand?
Percentage change in quantity demanded / Percentage change in price
Percentage change in price / Percentage change in quantity demanded
Change in quantity demanded / Change in price
Change in price / Change in quantity demanded
#11
If the price of a product decreases by 20% and the quantity demanded increases by 10%, what is the price elasticity of demand?
#12
If the price of a good increases by 10% and the total revenue decreases, what can be said about the demand elasticity?
The demand is elastic
The demand is inelastic
The demand is unitary elastic
The demand is perfectly elastic
#13
What is the relationship between total revenue and price elasticity of demand in the elastic range?
Total revenue decreases as price decreases.
Total revenue increases as price decreases.
Total revenue remains constant as price decreases.
Total revenue is not affected by price changes.
#14
Which of the following is a determinant of demand elasticity?
The availability of complementary goods
The size of the market
The level of advertising
The income elasticity of demand
#15
What is the formula for calculating the midpoint method of price elasticity of demand?
[(Q2 - Q1) / (Q2 + Q1)] / [(P2 - P1) / (P2 + P1)]
[(Q2 - Q1) * (P2 + P1)] / [(P2 - P1) * (Q2 + Q1)]
[(P2 - P1) / (P2 + P1)] / [(Q2 - Q1) / (Q2 + Q1)]
[(P2 + P1) / (P2 - P1)] / [(Q2 + Q1) / (Q2 - Q1)]