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Elasticity Of Demand Quiz 5 (25 MCQs)

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1. Electricity is a good with few or no close substitutes. What would you expect about the price elasticity of demand for electricity?
2. If the cross elasticity of demand between goods A and B is positive,
3. The Elasticity of Demand refers to
4. Suppose demand for a product is highly elastic. What will likely happen to a company's total revenue if it raises the price of that product?
5. The elasticity of demand is always _____
6. If elasticity of demand is 0
7. If prices falls and producer revenue falls then demand is
8. How a change in income affects the quantity demanded for a product.
9. If the income elasticity <1 what type of good is it?
10. When the supply of a good decreases, equilibrium price stays the same.What is the price elasticity of demand of the good?
11. Imagine a good with a small, positive income elasticity of demand. What type of good is it?
12. Which of the following goods is the most price elastic?
13. Which of the following is NOT a determinant for demand elasticity?
14. What is most likely to make the demand for Good X inelastic?
15. Which of the following items would be best described as mostly inelastic?
16. YED = 0 is referring to
17. The price elasticity of demand for tissues is 0.66. This means the demand for tissues is relatively
18. A 20% price cut causes a 15% increase in quantity demanded (sales)
19. A given percentage change in price leads to a large percentage change in quantity demanded (Greater than 1)
20. A PED value of-1.2 means _____
21. Question 3Yesterday, the price of envelopes was RM3 a box, and Ahmad was willing to buy 10 boxes. Today, the price has gone up to RM3.75 a box, and Ahmad is now willing to buy 8 boxes. What is Ahmad's elasticity of demand?
22. If your salary increase by 30 % and in response you increase your clothing purchases by 20 %, income elasticity equals _____ and clothing is _____
23. If Price and Total Revenue are inversely related
24. People buy less of them when they are well off but more of them during hard times. This describes _____
25. What is necessary for consumer surplus to be zero?
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