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71) If the price of salt increases and the quantity

Question : 71) If the price of salt increases and the quantity : 1844676

71) If the price of salt increases and the quantity demanded does not change, then

A) the price elasticity of demand is equal to zero.

B) demand is perfectly inelastic.

C) the demand curve for salt is horizontal.

D) Both answers A and B are correct.

72) Marvin loves chocolate truffles. As the price of a chocolate truffle increases from $1 to $2 to $3, Marvin continues to buy a dozen chocolate truffles every week. Marvin's demand for chocolate truffles is ________.

A) elastic

B) unit elastic

C) illustrated by a horizontal demand curve

D) perfectly inelastic

73) If the price of a good increases from $3 to $4, and the quantity demand remains unchanged, then the demand is

A) perfectly inelastic.

B) perfectly elastic.

C) somewhat elastic.

D) infinite.

74) When the price elasticity of demand for a good equals

A) 0, the demand curve is vertical.

B) 0, the demand curve is horizontal.

C) 1, the demand curve is vertical.

D) 1, the demand curve is horizontal.

75) A straight-line demand curve along which the price elasticity of demand equals 0 is one that

A) forms a 45 degree angle with the vertical axis.

B) forms a 60 degree angle with the horizontal axis.

C) is vertical.

D) is horizontal.

76) Demand is perfectly inelastic when

A) shifts in the supply curve results in no change in price.

B) the good in question has perfect substitutes.

C) shifts of the supply curve result in no change in quantity demanded.

D) shifts of the supply curve result in no change in the total revenue from the quantity sold.

77) A good with a vertical demand curve has a price elasticity of demand that ________ .

A) is equal to 1

B) is equal to infinite

C) is equal to zero

D) varies between 0 and 1

78) If the demand for a good is elastic, when the price increases, the

A) demand will decrease.

B) quantity demanded will increase.

C) quantity demanded will decrease by a smaller percentage than the price increased.

D) quantity demanded will decrease by a greater percentage than the price increased.

79) If demand is price elastic,

A) a 1 percent decrease in the price leads to an increase in the quantity demanded that exceeds 1 percent.

B) a 1 percent increase in the price leads to an increase in the quantity demanded that exceeds 1 percent.

C) a 1 percent decrease in the price leads to a decrease in the quantity demanded that is less than 1 percent.

D) the price is very sensitive to any shift of the supply curve.

80) A hot dog vendor on a street corner could increase the quantity of hot dogs her customers demand by 12 percent if she lowers the price of a hot dog 10 percent. The demand for the hot dogs is

A) cross elastic.

B) arc elastic.

C) unit elastic.

D) elastic.

Solution
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Economics 10 Months Ago 19 Views
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