APU ECO101 Week 3 Quiz (Chapter 4 & 5)

Question 1 of 10
10.0
Points
Demand is price inelastic if:
A.the
price of the good responds slightly to a quantity change.
B.the
demand curve shifts very little when a demand shifter changes.
C.the percentage change in
quantity demanded is relatively small in response to a relatively large
percentage change in price.
D.all
of the above are true.
Question 2 of 10
10.0
Points
If the absolute value of price elasticity is greater than 1,
this means the demand curve in that region is:
A.price elastic.
B.price
inelastic.
C.unit
price elastic.
D.upward
sloping.
Question 3 of 10
10.0
Points
Which of the following will lead to a decrease in total
revenue?
A.price
goes up and demand is perfectly inelastic
B.price
goes up and demand is price inelastic
C.price
declines and demand is price elastic
D.price increases and demand is
price elastic
Question 4 of 10
10.0
Points
If total revenue goes up when price falls, the price
elasticity of demand is said to be:
A.price
inelastic.
B.unit
price elastic.
C.price elastic.
D.positive.

Question 5 of 10
10.0
Points
Price elasticity of demand measures the responsiveness of
the change in:
A.quantity demanded to a change
in price.
B.price
to a change in quantity demanded.
C.slope
of the demand curve to a change in price.
D.slope
of the demand curve to a change in quantity demanded.
Question 6 of 10
10.0
Points
The price elasticity of demand is:
A.always
positive.
B.always
greater than 1.
C.usually
equal to 1.
D.always negative.
Question 7 of 10
10.0
Points
A men’s tie store sold an average of 30 ties per day when
the price was $5 per tie but sold 50 of the same ties per day when the price
was $3 per tie. Hence, the absolute value of the price elasticity of demand is:
A.greater
than zero but less than 1.
B.equal
to 1.
C.greater
than 1 but less than 3.
In D.greater
than 3.
Question 8 of 10
10.0
Points
If the total revenue received by a firm does not change when
it raises its price, this indicates that the demand for the firm’s product is:
A.unstable.

B.price
inelastic.
C.price
elastic.
D.unit price elastic.
Question 9 of 10
10.0
Points
The ratio of the percentage change in a dependent variable
to the percentage change in an independent variable, all other things
unchanged, is:
A.total
revenue.
B.production
possibilities.
C.elasticity.
D.slope.

Question 10 of 10
10.0
Points
The price elasticity of a good will tend to be greater:
A.the longer the relevant time
period.
B.the
fewer number of substitute goods available.
C.if it
is a staple or necessity with few substitutes.
D.All
of the above are true.
s