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51) The price elasticity of demand for new cars 1.2.

Question : 51) The price elasticity of demand for new cars 1.2. : 1844674

51) The price elasticity of demand for new cars is 1.2. Hence, a 10 percent price increase will

A) decrease the quantity of new cars demanded by 1.2 percent.

B) increase consumer expenditure on new cars by 1.2 percent.

C) decrease the quantity of new cars demanded by 12 percent.

D) increase consumer expenditure on new cars by 12 percent.

52) The price of a good rises by 12 percent and the price elasticity of demand for the good is 0.85. Which of the following is a correct interpretation of these facts?

A) When the price rises by 12 percent, the quantity demanded decreased by 0.85 percent.

B) For each 1 percent that the price rose, the quantity demanded decreased by 10.2 percent.

C) For each 0.85 percent that the price rose, the quantity demanded decreased by 1 percent.

D) For each 1 percent that the price rose, the quantity demanded decreased by 0.85 percent.

53) If the price elasticity of demand for clothing is 0.64, this implies that

A) a 6.4 percent increase in price the price of clothing leads to a 10 percent decrease in the quantity demanded.

B) a 10 percent increase in the price of clothing leads to a 6.4 percent decrease in the quantity demanded.

C) if there is an increase in the price of clothing the total expenditures on clothing decreases.

D) Both answers A and C are correct.

54) If the price elasticity of demand for a good is 0.8, then a

A) 1 percent rise in the price leads to a 0.8 percent decrease in the quantity demanded.

B) one dollar rise in the price leads to a 0.8 percent decrease in the quantity demanded.

C) 1 percent rise in the price leads to an 80 percent decrease in the quantity demanded.

D) 1 percent rise in the price leads to an 8 percent decrease in the quantity demanded.

Price

(dollars per bushel)

Quantity demanded

(bushels)

8

2,000

7

4,000

6

6,000

5

8,000

4

10,000

3

12,000

55) The table above gives the demand schedule for snow peas. The price elasticity of demand between $6.00 and $7.00 per bushel is

A) 1.0.

B) 2.0.

C) 2.6.

D) 5.0.

56) The table above gives the demand schedule for snow peas. If the price of snow peas falls from $4.00 to $3.00 a bushel, total revenue will

A) increase because demand is elastic in this range.

B) decrease because demand is elastic in this range.

C) increase because demand is inelastic in this range.

D) decrease because demand is inelastic in this range.

57) The table above gives the demand schedule for snow peas. The demand curve for snow peas is a straight line and so the elasticity of demand is

A) 1 at all prices.

B) the same at all prices but not 1.

C) higher at higher prices.

D) lower at higher prices.

Price

(dollars per bushel)

Quantity demanded

(bushels)

A

10

0

B

8

4

C

6

8

D

4

12

E

2

16

58) The table above gives the demand schedule for peas. Between point A and point B, the price elasticity of demand equals

A) 0.11.

B) 0.50.

C) 0.22.

D) 9.09.

59) The table above gives the demand schedule for peas. Between point C and point D, the price elasticity of demand is

A) elastic.

B) unit elastic.

C) 0.75.

D) 3.00.

60) The table above gives the demand schedule for peas. Which of the following statements correctly describes the price elasticity of demand?

A) The price elasticity of demand is larger at point A than at point B.

B) The price elasticity of demand is larger at point D than at point A.

C) The price elasticity of demand is constant because the slope is constant.

D) The price elasticity of demand increases moving from point A to point B to point C to point D to point E.

Solution
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Economics 1 Year Ago 60 Views
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