This quiz works best with JavaScript enabled. Home > Economics > Microeconomics > Elasticity > Elasticity Of Demand – Quiz 9 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Elasticity Of Demand Quiz 9 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. How is price elasticity of demand measured? A) % change quantity supplied/% change in price. B) Change in quantity supplied/change in price. C) % change in quantity demanded/% change in price. D) Change in quantity demanded/change in price. Show Answer Correct Answer: C) % change in quantity demanded/% change in price. 2. Elasticity of demand measures the responsiveness of ..... A) Price as quantity demand changes. B) Quantity demanded as price changes. C) Demand as supply shifts. D) Price as demand shifts. Show Answer Correct Answer: B) Quantity demanded as price changes. 3. Question 9A fall in the price of X from RM12 to RM8 causes an increase in the quantity of Y demanded from 900 to 1, 100 units.What is the cross elasticity of demand between X and Y? A) 0.50. B) 2. C) -0.50. D) -2. Show Answer Correct Answer: C) -0.50. 4. A week's holiday to New York A) Normal Good. B) Inferior Good. C) Luxury Good. D) None of above. Show Answer Correct Answer: C) Luxury Good. 5. The cross elasticity of demand between Coca-Cola and Pepsi is A) Positive, that is, Coke and Pepsi are complements. B) Negative, that is, Coke and Pepsi are complements. C) Positive, that is, Coke and Pepsi are substitutes. D) Negative, that is, Coke and Pepsi are substitutes. Show Answer Correct Answer: C) Positive, that is, Coke and Pepsi are substitutes. 6. Which of the following would make a product more price elastic? A) It has lots of substitutes. B) It consumes a low % of income. C) It is in the short-term. D) It is a necessity. Show Answer Correct Answer: A) It has lots of substitutes. 7. If a good has only a few substitutes and these substitutes are not close to the good, the PED for the good is likely to be A) Perfectly Price Inelastic. B) Price Inelastic. C) Price Elastic. D) Perfectly Price Elastic. Show Answer Correct Answer: B) Price Inelastic. 8. The Price elasticity of Bread is 1, therefore we can say that bread is ..... A) Elastic. B) Inelastic. C) Unit elastic. D) None of above. Show Answer Correct Answer: C) Unit elastic. 9. A hawker finds that when he increases his price for fish balls, his revenue decreases. The demand for his fish balls is therefore A) Elastic. B) Inelastic. C) Perfectly inelastic. D) Unitarily elastic. Show Answer Correct Answer: A) Elastic. 10. Goods tend to have a more ..... demand over a longer period of time. A) Elastic. B) Solid. C) Generous. D) Inelastic. Show Answer Correct Answer: A) Elastic. 11. If the price of Kellogg's Corn Flakes goes up from £1.89 to £2.05 and quantity demanded changes from 250 to 210, then the price elasticity of demand would be: A) 250. B) 0.02. C) 0.47. D) 2.14. Show Answer Correct Answer: D) 2.14. 12. Question 4Amy advertises to sell cookies for RM4 a dozen. She sells 50 dozen, and decides that she can charge more. She raises the price to RM6 a dozen and sells 40 dozen.What is Amy's elasticity of demand? A) -0.10. B) 0.50. C) -0.40. D) 1.00. Show Answer Correct Answer: C) -0.40. 13. In which of the following cases would a firm's total revenue increase? A) Price increases and demand is elastic. B) Price decreases and supply is inelastic. C) Price decreases and demand is inelastic. D) Price decreases and demand is elastic. Show Answer Correct Answer: D) Price decreases and demand is elastic. 14. If a 10% change in price leads to a 30% change in the quantity demanded, then what is the elasticity? A) 30. B) 0.333. C) 3. D) 0.033. Show Answer Correct Answer: C) 3. 15. If the price of a product doubled and in response the quantity supplied also doubled then the PES is equal to A) 1. B) 2. C) -1. D) O. Show Answer Correct Answer: A) 1. 16. Why would demand for salt be considered inelastic? A) Salt is very expensive. B) Salt is not a necessity. C) Salt is very expensive to purchase. D) None of above. Show Answer Correct Answer: B) Salt is not a necessity. 17. .If demand is price elastic, then: A) A rise in price will raise total revenue. B) A fall in price will raise total revenue. C) A fall in price will lower the quantity demanded. D) A rise in price won't have any effect on total revenues. Show Answer Correct Answer: B) A fall in price will raise total revenue. 18. Demand for a product is likely to be price inelastic the ..... A) Fewer substitutes it has. B) Greater the proportion of income spent on it. C) Fewer complements it has. D) Higher its market price. Show Answer Correct Answer: A) Fewer substitutes it has. 19. Price X Quantity = A) Total revenue. B) Price elasticity of demand. C) Price elasticity of supply. D) Trade deficits. Show Answer Correct Answer: A) Total revenue. 20. Water has seen an increase in demand 8% this summer, while the price has decreased 12%. The PED is: A) 1.5 inelastic. B) .67 inelastic. C) .67 elastic. D) 1.5 elastic. Show Answer Correct Answer: B) .67 inelastic. 21. If price rises and total revenue stays the same the demand is A) Inelastic. B) Unitary. C) Elastic. D) None of above. Show Answer Correct Answer: B) Unitary. 22. When is the price elasticity of demand for a good likely to be greater than one? A) When expenditure on the good is a small part of total expenditure. B) When the good has few uses. C) When the good is habit-forming. D) When there are many substitutes for the good. Show Answer Correct Answer: D) When there are many substitutes for the good. 23. Question 6Ali's income has just risen from RM940 per week to RM1, 060 per week. As a result, he decides to purchase 9 percent more steak per week.The income elasticity of Ali's demand for steak is? A) 1.33. B) 1.00. C) 0.90. D) 0.75. Show Answer Correct Answer: D) 0.75. 24. Gasoline is inelastic on the short and the long run because ..... A) It is very expensive. B) We depend on oil to make it. C) There are very few subtitutes to gasoline. D) None of above. Show Answer Correct Answer: C) There are very few subtitutes to gasoline. 25. The price of Good X rises by 20%. As a result, the demand for a substitute Good Y rises by 10%.What is the cross-elasticity of demand for Good Y with respect to Good X? A) -0.5. B) + 0.5. C) + 2. D) -2. Show Answer Correct Answer: A) -0.5. 26. A product has a price elasticity of demand that is greater than one. What will happen to total revenue if the price of the product is reduced by 3%? A) It will fall by more than 3%. B) It will fall to zero. C) It will be unchanged. D) It will rise. Show Answer Correct Answer: D) It will rise. 27. When Elasticity is higher than 1, this is ..... A) Inelastic. B) Elastic. C) Unit Elastic. D) None of above. Show Answer Correct Answer: B) Elastic. 28. Water has seen an increase in demand 8% this summer, while the price has decreased 12% A) .67 elastic. B) .67 inelastic. C) 1.5 elastic. D) 1.5 inelastic. Show Answer Correct Answer: B) .67 inelastic. 29. Supermarket branded Baked Beans A) Normal Good. B) Inferior Good. C) Luxury Good. D) None of above. Show Answer Correct Answer: B) Inferior Good. 30. A 10 percent decrease in the price of a Pepsi decreases the demand for a Coca-Cola by 50 percent. The cross elasticity of demand between a Pepsi and Coca-Cola is: A) 0.20. B) 50. C) 5. D) 10. Show Answer Correct Answer: C) 5. ← PreviousNext →Related QuizzesMicroeconomics QuizzesEconomics QuizzesElasticity Of Demand Quiz 1Elasticity Of Demand Quiz 2Elasticity Of Demand Quiz 3Elasticity Of Demand Quiz 4Elasticity Of Demand Quiz 5Elasticity Of Demand Quiz 6Elasticity Of Demand Quiz 7Elasticity Of Demand Quiz 8 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books