This quiz works best with JavaScript enabled. Home > Microeconomics > Elasticity > Elasticity Of Demand – Quiz 13 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Elasticity Of Demand Quiz 13 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Alyssa's Floral Shoppe dropped its prices for a dozen roses from £50 to £40 this year. Because of this decrease in price, the quantity sold increased from 1000 to 1500. The price elasticity of demand for Alyssa's roses is: A) 1.00. B) 2.5. C) 0.625. D) 2.25. Show Answer Correct Answer: B) 2.5. 2. The demand for Ice cream cones from a van was fairly inelastic but it has just started to become more elastic then it was. What time of year is it? A) Spring. B) Summer. C) Autumn. D) Winter. Show Answer Correct Answer: C) Autumn. 3. If elasticity of supply is infinite A) Perfectly elastic supply. B) Perfectly inelastic supply. C) Perfectly inelastic demand. D) Perfectly elastic demand. Show Answer Correct Answer: A) Perfectly elastic supply. 4. If a fall in the price of good A increases the quantity demanded of good B, A) A and B are substitutes. B) A and B are complements. C) B is a substitute for A, but A is a complement to B. D) A is a substitute for B, but B is a complement to A. Show Answer Correct Answer: B) A and B are complements. 5. 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. 6. 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. 7. 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) -2. B) 0.50. C) -0.50. D) 2. Show Answer Correct Answer: C) -0.50. 8. 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. 9. 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. 10. 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 a necessity. D) It is in the short-term. Show Answer Correct Answer: A) It has lots of substitutes. 11. 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) Perfectly Price Elastic. D) Price Elastic. Show Answer Correct Answer: B) Price Inelastic. 12. 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. 13. A hawker finds that when he increases his price for fish balls, his revenue decreases. The demand for his fish balls is therefore A) Perfectly inelastic. B) Inelastic. C) Unitarily elastic. D) Elastic. Show Answer Correct Answer: D) Elastic. 14. Goods tend to have a more ..... demand over a longer period of time. A) Elastic. B) Inelastic. C) Solid. D) Generous. Show Answer Correct Answer: A) Elastic. 15. 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) 0.47. B) 0.02. C) 250. D) 2.14. Show Answer Correct Answer: D) 2.14. 16. 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) -0.40. C) 0.50. D) 1.00. Show Answer Correct Answer: B) -0.40. 17. 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. 18. If a 10% change in price leads to a 30% change in the quantity demanded, then what is the elasticity? A) 0.333. B) 30. C) 0.033. D) 3. Show Answer Correct Answer: D) 3. 19. If the price of a product doubled and in response the quantity supplied also doubled then the PES is equal to A) 1. B) -1. C) 2. D) O. Show Answer Correct Answer: A) 1. 20. 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. ← 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