This quiz works best with JavaScript enabled. Home > Microeconomics > Elasticity > Elasticity Of Demand – Quiz 12 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Elasticity Of Demand Quiz 12 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A steel mill raise the price of steel by 5 percent, which results in a 4 percent reduction in the quantity of steel demanded. The demand curve facing this firm is A) Elastic. B) Inelastic. C) Unitary elastic. D) Perfectly elastic. Show Answer Correct Answer: B) Inelastic. 2. In discussions of economic elasticity, what does ceteris paribus mean? A) No factors considered. B) All other factors changing at the same rate. C) All demand and supply being equal. D) All other factors held constant. Show Answer Correct Answer: D) All other factors held constant. 3. Cars on the short run, are elastic because A) Their price is expensive. B) They can't be easily replaced. C) They can be easily replaced. D) None of above. Show Answer Correct Answer: C) They can be easily replaced. 4. What is the % change in quantity demanded if the YED of the product is 2.7 and the % change in income is 12% A) 0.286. B) 0.162. C) 0.324. D) 0.367. Show Answer Correct Answer: C) 0.324. 5. As it relates to Price Elasticity of Demand; if price increases and total revenue decreases then A) >1, relatively elastic. B) <1, relatively inelastic. C) = 1, unit elastic. D) None of above. Show Answer Correct Answer: A) >1, relatively elastic. 6. Which of these would most likely increase the supply of soccer balls? A) A transportation strike. B) A government excise tax. C) A decrease in the price of raw materials. D) An increase in the supply of tennis balls. Show Answer Correct Answer: C) A decrease in the price of raw materials. 7. The PED for a good is defined as the degree of responsiveness of quantity demanded to a A) Change in price of the good. B) Change in price of a different good. C) Change in consumer income. D) Change in supply of the good. Show Answer Correct Answer: A) Change in price of the good. 8. The percentage change in quantity supplied divided by the percentage change in price is a rough measure of a good's: A) Unitary margin. B) Price elasticity of supply. C) Exclusivity ratio. D) Price elasticity of demand. Show Answer Correct Answer: B) Price elasticity of supply. 9. The price of durians falls by 5% and quantity demanded increase by 6%. This means that the demand for durians is ..... A) Perfectly elastic. B) Elastic. C) Perfectly inelastic. D) Inelastic. Show Answer Correct Answer: B) Elastic. 10. If average income rises from £18, 000 per year to £22, 000 per year and annual petrol consumption per household rises from 1000 to 1500 gallons, the income elasticity of demand for gas is: A) In the inferior range. B) 0.5. C) 1. D) 2. Show Answer Correct Answer: D) 2. 11. A consumer buys 50 units of a good at Rs 4 per unit. When its price falls by 25% its demand rises to Rs 100 units. Find out the elasticity of demand. A) -2. B) -4. C) -3. D) -1. Show Answer Correct Answer: B) -4. 12. For which of the following products do you have to most careful about putting up the price. A) Milk. B) Petrol. C) Insulin. D) Baked Beans. Show Answer Correct Answer: D) Baked Beans. 13. Prada has seen a increase in demand of 70%, while the price has decreased 35% A) .5 inelastic. B) .5 elastic. C) 2 inelastic. D) 2 elastic. Show Answer Correct Answer: D) 2 elastic. 14. What will happen during a recession? A) Demand for substitute goods and inferior goods will fall. B) Demand for substitute goods will fall and inferior goods will rise. C) Demand for substitute goods and inferior goods will rise. D) None of above. Show Answer Correct Answer: C) Demand for substitute goods and inferior goods will rise. 15. The demand for used cars will ....., if the price of new cars goes up. A) Remain the same. B) Rise. C) Fall. D) None of above. Show Answer Correct Answer: B) Rise. 16. PED of Good A is the degree of responsiveness of quantity demanded to a change in ..... A) Price of Good A. B) Price of Good B. C) Supply. D) Income. Show Answer Correct Answer: A) Price of Good A. 17. What makes an item more elastic-is when there are these available. A) Loans. B) Taxes. C) Substitutes. D) Luxury Goods. Show Answer Correct Answer: C) Substitutes. 18. If consumers have an urgent need for a product, then A) The demand curve is inelastic. B) The demand curve is elastic. C) The demand curve is complementary. D) The demand curve is unit demand. Show Answer Correct Answer: A) The demand curve is inelastic. 19. The PES for wheat in a given country A) Is less elastic the longer the time period in question. B) Is more elastic the more substitutes there are for wheat. C) Is greater the more wheat there is in storage. D) Will be higher if there are restrictions on wheat imports. Show Answer Correct Answer: C) Is greater the more wheat there is in storage. 20. If elasticity of demand is > than elasticity of supply A) Producers will pay more of the tax. B) Consumers will pay more of the tax. C) Producers will pay all the tax. D) Consumers will pay all the tax. Show Answer Correct Answer: A) Producers will pay more of the tax. ← PreviousNext →Related QuizzesMicroeconomics 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 8Elasticity Of Demand Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books