This quiz works best with JavaScript enabled. Home > Microeconomics > Elasticity > Elasticity Of Demand – Quiz 15 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Elasticity Of Demand Quiz 15 (10 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. If the supply curve of a product is vertical, PES is equal to A) 0. B) 1. C) -1. D) Infinity. Show Answer Correct Answer: A) 0. 2. For an inferior good, an increase in consumer income will cause: A) The demand curve to shift left. B) The demand curve to shift right. C) The supply curve to shift left. D) The supply curve to shift right. Show Answer Correct Answer: A) The demand curve to shift left. 3. If a 1 percent decrease in the price of a pound of oranges results in a smaller percentage decrease in the quantity supplied, then: A) Supply is inelastic. B) Demand is inelastic. C) Supply is elastic. D) Demand is elastic. Show Answer Correct Answer: A) Supply is inelastic. 4. Assume the income elasticity of demand for good Z equals-5.0. Which of the following is true? A) An increase in income will lead to a decrease in demand. B) Good Z is a normal good. C) An increase in income will lead to an increase in demand. D) Good Z must have an inelastic demand. Show Answer Correct Answer: A) An increase in income will lead to a decrease in demand. 5. What could not cause a shift in an individual's demand curve for good Z? A) A change in advertising expenditure on Z. B) A change in the individual's income. C) A change in the individual's tastes. D) A change in the price of Z. Show Answer Correct Answer: D) A change in the price of Z. 6. If the income elasticity of market demand is negative, most consumers view the good as: A) A luxury good. B) Having many imperfect substitutes. C) An inferior good. D) ) a normal good. Show Answer Correct Answer: C) An inferior good. 7. When demand for a product is income inelastic the percentage change in quantity demanded is ..... the percentage change in income A) Equal to. B) Less than. C) The same as. D) More than. Show Answer Correct Answer: B) Less than. 8. The price elasticity of demand for grapes is-2.0. When the price is $ 15, quantity demanded is 5000 units.How much will be demanded when the price falls to $ 12? A) 3000 units. B) 5500 units. C) 7000 units. D) 7500 units. Show Answer Correct Answer: C) 7000 units. 9. Columbia Sports Wear has seen a decrease in demand of 57%, while the price has increased 24% A) .42 inelastic. B) .42 elastic. C) 2.4 inelastic. D) 2.4 elastic. Show Answer Correct Answer: D) 2.4 elastic. 10. A good for which demand increases more quickly than income is a ..... A) Luxury good. B) Inferior good. C) Normal good. D) Giffen good. Show Answer Correct Answer: A) Luxury good. ← PreviousRelated 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