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11) The price elasticity of demand for oranges ________ change

Question : 11) The price elasticity of demand for oranges ________ change : 1844670

11) The price elasticity of demand for oranges ________ change if the units of the quantity was changed from pounds to kilograms and ________ change if the units of the price was changed from dollars to cents.

A) would; would

B) would; would not

C) would not; would

D) would not; would not

12) Suppose the quantity of gasoline is measured in gallons and the price of gasoline is measured in dollars. The price elasticity of demand is 0.67. If the price of gasoline was now measured in cents rather than dollars, the price elasticity of demand would now be

A) 0.0067.

B) 0.67.

C) 6.7.

D) 67.0.

13) A decrease in the price of eggs from $1.50 to $1.30 per dozen resulted in an increase in egg purchases in two cities. In Philadelphia, daily egg purchases increased from 6000 to 8000 dozens; in nearby Dover, Delaware, daily egg purchases increased from 300 to 400 dozens. The price elasticity of demand is therefore

A) lower in the smaller city as would be expected.

B) greater in the smaller city as would be expected.

C) certainly affected by population differences in different markets.

D) the same in Philadelphia as in Dover.

14) Dan sells newspapers. Dan says that a 4 percent increase in the price of a newspaper will decrease the quantity of newspapers demanded by 8 percent. According to Dan, the demand for newspapers is ________.

A) inelastic

B) unit elastic

C) perfectly elastic

D) elastic

15) The price elasticity of demand for furniture is estimated at 1.3. This value means a one percent increase in the

A) price of furniture will increase the quantity of furniture demanded by 1.3 percent.

B) price of furniture will decrease the quantity of furniture demanded by 1.3 percent.

C) quantity of furniture demanded will decrease the price of furniture by 1.3 percent.

D) quantity of furniture demanded will increase the price of furniture by 1.3 percent.

16) The price elasticity of demand for oil is estimated at 0.05. This value means a 10 percent increase in the

A) quantity of oil demanded will result from a 0.5 percent increase in the price of oil.

B) quantity of oil demanded will result from a 0.5 percent decrease in the price of oil.

C) price of oil will increase the quantity of oil demanded by 0.5 percent.

D) price of oil will decrease the quantity of oil demanded by 0.5 percent.

17) If a 6 percent decrease in the price leads to a 5 percent increase in the quantity demanded, the price elasticity of demand is

A) 0.30.

B) 0.60.

C) 0.83.

D) 1.20.

18) A 10 percent increase in the quantity of spinach demanded results from a 20 percent decline in its price. The price elasticity of demand for spinach is

A) 0.5.

B) 2.0.

C) 10.0.

D) 20.0.

19) A 20 percent increase in the quantity of pizza demanded results from a 10 percent decline in its price. The price elasticity of demand for pizza is

A) 0.5.

B) 2.0.

C) 10.0.

D) 20.0.

20) If a 20 percent increase in the price of a used car results in a 10 percent decrease in the quantity of used cars demanded, then the price elasticity of demand equals

A) 0.5.

B) 1.0.

C) 2.0.

D) 10.0.

Solution
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