#1
Which of the following is a measure of price elasticity of demand?
Percentage change in quantity demanded divided by percentage change in price
Total revenue divided by quantity demanded
Percentage change in price divided by percentage change in quantity demanded
Change in quantity demanded divided by change in price
#2
What does a price elasticity of demand of -1.5 indicate?
Unitary elastic demand
Inelastic demand
Elastic demand
Perfectly elastic demand
#3
Which of the following factors does NOT influence the price elasticity of supply?
Time period under consideration
Availability of inputs
Technology
Firm's marketing strategy
#4
If the cross-price elasticity of demand between two goods is positive, it means that:
The goods are substitutes
The goods are complements
The goods are luxury goods
The goods are inferior goods
#5
What is the formula for calculating income elasticity of demand?
Percentage change in quantity demanded divided by percentage change in income
Percentage change in income divided by percentage change in quantity demanded
Percentage change in quantity demanded divided by percentage change in price
Percentage change in price divided by percentage change in quantity demanded
#6
Which of the following factors does NOT affect the price elasticity of demand?
Availability of substitutes
Time horizon
Income level
Consumer preferences
#7
What does it mean if the price elasticity of demand for a good is perfectly inelastic?
Consumers are not responsive to price changes
Consumers are highly responsive to price changes
Quantity demanded changes proportionally more than price
Quantity demanded does not change with any change in price
#8
What is the formula for calculating price elasticity of supply?
Percentage change in quantity supplied divided by percentage change in price
Percentage change in price divided by percentage change in quantity supplied
Percentage change in quantity supplied divided by percentage change in income
Percentage change in income divided by percentage change in quantity supplied
#9
Which of the following is a characteristic of perfectly elastic demand?
Steep demand curve
Flat demand curve
Unitary elastic demand
Inelastic demand
#10
When the price elasticity of supply is greater than 1, the supply curve is considered to be:
Perfectly inelastic
Elastic
Unitary elastic
Inelastic
#11
If a 10% increase in price leads to a 5% decrease in quantity demanded, what is the price elasticity of demand?
#12
Which of the following goods is likely to have the most elastic demand?
Gasoline
Salt
Insulin
Luxury cars
#13
What does a negative cross-price elasticity of demand between two goods indicate?
The goods are substitutes
The goods are complements
The goods are normal goods
The goods are inferior goods
#14
What happens to total revenue when the price elasticity of demand is greater than 1?
Total revenue increases
Total revenue decreases
Total revenue remains constant
It depends on the price elasticity of supply
#15
If the price elasticity of demand for a good is -0.75, how would you describe its demand?
Elastic
Inelastic
Unitary elastic
Perfectly elastic