Elasticity

Quiz 3 - Elasticity

1. When the bell of sugar ontogenesiss from $0.95 a megabucks to $1.05 a packet, the cadence demanded decreases from 55 packets a day to 45 packets a day. The price catch of demand of sugar is;
a. 0.5
b. 1.0
c. 1.5
d. 2.0

2. When the price of a Caesar salad is $5.00, the demand for Caesar salads is elastic, and when the price is $4.00, the demand is unit elastic. If mikes Roadside Restaurant cuts the price from $5.00 to $4.00, its total taxation from Caesar salads;
a. Will increase
b. Will decrease
c. Will remain the same
d. Might increase, decrease, or remain the same

3. If a 5 sh ar increase in the price of good A leads to a 4 percent decrease in the demand for good B, then;
a. The goods are substitutes
b. Both goods are normal goods
c. The goods are comp elements
d. Only virtuoso good is a normal good

4. The income elasticity of demand of pass is 5. If incomes increase by 3 percent next year, the amount of vacations demanded at todays price will increase by ______ percent.
a. 3
b. 5/3
c. 15
d. 5

5.



If a 10 percent dislodge in the price of a good leads to a 5 percent trade in the quantity supplied, then the elasticity of supply is;
a. 2.0
b. 1.0
c. 0.5
d. 0.2


6. Suppose that the price elasticity of demand for apple is 2.5 when there is a 20 percent decrease in price. Quantity demanded increases by
a) 20%
b) 50%
c) 10%
d) 75%

7. The fence why the price elasticity of demand is always a negative number is that
a) When price increases, quantity demanded decreases
b) The demand veer slopes down and to the right
c) An inverse relationship exists between price and quantity demanded
d) All of the above apply

8. If a given portion change in price results in a greater percentage change in...If you want to get a full essay, gild it on our website: Orderessay



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