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81) Demand price elastic if a A) relatively large price increase

Question : 81) Demand price elastic if a A) relatively large price increase : 1844677

81) Demand is price elastic if a

A) relatively large price increase leads to a relatively small decrease in the quantity demanded.

B) relatively small price increase leads to a relatively large decrease in the quantity demanded.

C) price increase leads to a decrease in the quantity demanded.

D) price increase leads to an increase in the quantity demanded.

82) If the demand for a good is elastic, the price elasticity of demand is ________.

A) greater than 1

B) equal to 1

C) between 0 and 1

D) less than zero

83) "Last October, due to an early frost, the price of a pumpkin increased by 10 percent compared to the price in the previous Halloween seasons. As a result, the quantity demanded county-wide decreased from 2 million to 1.5 million." Based on this statement, the

A) demand for pumpkins is elastic.

B) demand for pumpkins is inelastic.

C) demand for pumpkins is unit elastic.

D) demand curve for pumpkins shifted rightward.

84) If the price elasticity of demand for peanut butter is 2.4, then peanut butter

A) has an elastic demand.

B) has an inelastic demand.

C) has a unit elastic demand.

D) is a normal good.

85) If the quantity demanded changes by an infinitely large amount for a given change in price, then demand is

A) perfectly inelastic.

B) perfectly elastic.

C) elastic.

D) inelastic.

86) When the demand for a good is perfectly elastic, ________.

A) total revenue is as large as possible

B) the demand curve for the good is vertical

C) the price elasticity of demand is infinite

D) the price elasticity of demand is zero

87) If the demand for a good is perfectly elastic, the price elasticity of demand is ________ and the demand curve is ________.

A) infinite; vertical

B) zero; vertical

C) zero; horizontal

D) infinite; horizontal

88) A good with a horizontal demand curve has a demand

A) with an income elasticity of demand equal to 0.

B) with a price elasticity of demand equal to 0.

C) with a price elasticity of demand equal to infinity.

D) for which there are no substitutes.

89) If the price elasticity of demand for gasoline is 0.8 and the price elasticity of demand for plane tickets is 2.2 then the demand for gasoline is ________ and the demand for plane tickets is ________.

A) elastic; inelastic

B) inelastic; elastic

C) elastic; elastic

D) inelastic; inelastic

90) If the price elasticity of demand for airline travel is 0.52 in the short run and 1.46 in the long run, then the demand for airline travel is ________ in the short run and ________ in the long run.

A) elastic; elastic

B) elastic; inelastic

C) inelastic; elastic

D) inelastic; inelastic

Solution
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Economics 1 Year Ago 12 Views
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