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91) The demand for movies unit elastic if A) a 5

Question : 91) The demand for movies unit elastic if A) a 5 : 1844678

91) The demand for movies is unit elastic if

A) a 5 percent decrease in the price leads to an infinite increase in the quantity demanded.

B) a 5 percent increase in the price leads to a 5 percent decrease in the quantity demanded.

C) any increase in the price leads to a 1 percent decrease in the quantity demanded.

D) a 5 percent increase in the price leads to a 5 percent increase in total revenue.

92) Unit elastic demand means that the

A) ratio of a change in the quantity demanded to a change in the price equals 1.

B) ratio of a percentage change in the quantity demanded to a percentage change in the price equals 1.

C) demand curve is vertical.

D) demand curve is horizontal.

93) Freezing temperatures in California have sharply reduced the supply of oranges in the U.S. You predict that the price of oranges will ________, and the more elastic the demand for oranges, the ________ will be the effect on the price.

A) fall; smaller

B) fall; greater

C) rise; smaller

D) rise; greater

94) If the elasticity of demand for peaches is 1.76 and the elasticity of demand for apples is 1.59, then consumers are

A) more sensitive to a change in the price of peaches than they are to a change in the price of apples.

B) less sensitive to a change in the price of peaches than they are to a change in the price of apples.

C) more sensitive to a change in the quantity of peaches than they are to a change in the quantity of apples.

D) less sensitive to a change in the quantity of peaches than they are to a change in the quantity of apples.

 

 

95) The demand curve in the figure above illustrates the demand for a product with

A) zero price elasticity of demand at all prices.

B) infinite price elasticity of demand.

C) unit price elasticity of demand at all prices.

D) a price elasticity of demand that is different at all prices.

 

 

96) In the above figure, which demand curve illustrates perfectly elastic demand?

A) G

B) H

C) I

D) J

 

 

97) The demand curve in the figure above illustrates a product whose demand has a price elasticity of demand equal to

A) zero at all prices.

B) infinity.

C) one at all prices.

D) a different amount at different prices.

 

 

98) The demand curve in the figure above illustrates the demand for a product with

A) zero price elasticity of demand at all prices.

B) infinite price elasticity of demand.

C) unit price elasticity of demand at all prices.

D) a price elasticity of demand that is different at all prices.

99) If the demand curve for oranges is a downward sloping straight line, the price elasticity of demand will increase the

A) higher the price of oranges.

B) higher the price of other fruits.

C) higher the income level of consumers.

D) lower the price of oranges.

100) If the demand curve is a downward sloping straight line, the price elasticity of demand always

A) increases as the demand curve shifts rightward.

B) increases as the demand curve shifts leftward.

C) increases with movements upward along the demand curve.

D) decreases with movements upward along the demand curve.

Solution
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Economics 1 Year Ago 17 Views
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