4 Qulzlet Question

Refer to the accompanying figure. Assume the slopes of the two demand curves are the same. Let eA denote the price elasticity of demand at point A, and let eB denote the price elasticity of demand at point B.

 

 

Which of the following statements is correct?

Multiple Choice

窗体顶端

· eA > eB

· eA < eB

· eA = eB

· eA ÷ eB < 0

窗体底端

Refer to the accompanying figure. If the price of this good is initially $3, and price falls by a few cents, then what will happen to total expenditure on this good?

 

Multiple Choice

窗体顶端

· Total expenditure will rise.

· Total expenditure will not change.

· Total expenditure will fall.

· Total expenditure will fall to 0.

窗体底端

Refer to the accompanying figure. If P = $6, then the price elasticity of supply is:

 

Multiple Choice

窗体顶端

· less than zero

· positive, but less than one

· one

· greater than one

窗体底端

If the price elasticity of demand for a good is greater than one, then the demand for that good is:

Multiple Choice

窗体顶端

· elastic.

· inelastic.

· unit elastic.

· perfectly elastic.

窗体底端