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Elasticity Of Demand Quiz 7 (25 MCQs)

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1. Elasticity of demand is said to be elastic when elasticity is:
2. The reason why Chevrolet cars are very elastic is because _____
3. If cross price elasticity of of good a and good b is-2. What does this mean about good a and b?
4. When will it not be possible to use price as a rationing mechanism?
5. What measures demand elasticity?
6. Which of these is most likely to happen to demand for clothes in a clothing store when blizzards keep customers at home?
7. The difference between the highest price a consumer will pay and the actual price paid for a good or service.
8. A producer has a good which PED is assessed to be 1.7. If he wishes to increase total revenue, what should the producer do?
9. If P = $ 10 for Tiny Tee-shirts, Q = 20, but if P = $ 5, Q = 25. The price elasticity of demand for Tiny Tee-shirts is:
10. If P = $ 10 for Tiny Tee-shirts, Q = 20, but if P = $ 5, Q = 25. This good is _____
11. You are on a committe that is considering ways to raise money for your city's symphony program. You would recommend increasing the price of symphony tickets only if you thought the demand curve for these tickets was
12. If the XED between 2 goods is positive, what is the relationship between these 2 goods?
13. Bonus:The loss of total surplus when a market fails to reach a competitive equilibrium due to a market distortion, like a tax.
14. If a change in the supply of a good results in a percentage change in quantity demanded that exceeds in absolute value the percentage change in price, then demand is relatively:
15. In the short run, price elasticity may be, because of a lack of substitutes for example, relatively
16. If the price elasticity of demand for a product is 2.5 and its price has increased by 3%, we can conclude that the quantity demanded:
17. If a seller knows that the demand for his good or service is inelastic, then what would they most likely do?
18. Which one of the following effects on elasticity is the odd one out?
19. The price of a commodity is Rs 15 per unit and its quantity demanded is 500 units. Its quantity demanded rises by 80 units as a result of a fall in its price by 20 %.Calculate Ed
20. What does the elasticity of demand measures?
21. What is most likely to increase the demand for compact disc players?
22. A good is considered relatively inelastic if the elasticity of demand is _____
23. It is reasonable to expect the cross price elasticity of demand for golf clubs and golf balls to be positive
24. Good X is a substitute for good Y and a complement to good Z. What would happen after a fall in the price of good X?
25. What type of good would have a YED = 2
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