econ

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Mini Quizzes

Video Lesson Pages 22-23 Mini Quiz

_______ 1. When demand is inelastic, the price elasticity of demand is

A. less than 1, and price and total revenue will move in the same direction.

B. less than 1, and price and total revenue will move in opposite directions.

C. greater than 1, and price and total revenue will move in the same direction.

D. greater than 1, and price and total revenue will move in opposite directions.

E. equal to 1, and price and total revenue move in opposite directions.

_______ 2. An increase in price causes an increase in total revenue when demand is

A. elastic. C. unit elastic.

B. inelastic. D. perfectly elastic.

Video Lesson Page 24 Mini Quiz

_______1. As we move downward and to the right along a linear, downward-sloping demand curve,

A. both slope and elasticity remain constant.

B. slope changes but elasticity remains constant.

C. both slope and elasticity change.

D. slope remains constant but elasticity changes.

Video Lesson Page 25 Mini Quiz

_______ 1. Consider that your income has decreased this year from $50,000 to $10,000. You bought 2 quantities

of product B last year and decide to purchase 9 quantities of product B this year.

Keeping all other factors the same, which statement is correct regarding your income elasticity of demand

and product B?

A. the income elasticity of demand is -1.04 and the designer jeans are considered inferior goods. B. The income elasticity of demand is 3.33 and the designer jeans are considered normal goods.

C. The income elasticity of demand is 0.95 and the designer jeans are considered normal goods.

D. The income elasticity of demand is -3.33 and the designer jeans are considered normal goods. E. The income elasticity of demand is -0.95 and the designer jeans are considered inferior goods.

_______ 2. A positive cross-price elasticity of demand between two products would indicate that they are:

A. complements C. inferior goods

B. substitutes D. normal goods

_______ 3. If product X’s price increases from $17 to $45 and product Y’s quantity demanded increases from 150 to

200. Calculate the cross-price elasticity of demand. Are they substitutes or complements?

A. The cross-price elasticity of demand is 2.43 and they are substitutes.

B. The cross-price elasticity of demand is 2.43 and they are complements.

C. The cross-price elasticity of demand is -0.1 and they are complements.

D. The cross-price elasticity of demand is 0.1 and they are substitutes.

E. The cross-price elasticity of demand is 0.32 and they are substitutes.

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Video Lesson Pages 26-27 Mini Quiz

_______ 1. If the price of product A rises, when is the price elasticity of supply likely to be the highest?

A. immediately after the price increase

B. one month after the price increase

C. three months after the price increase

D. one year after the price increase

E. three years after the price increase

_______ 2. A manufacturer produces 400 units when the market price of $10 per unit and produces 600 units when

the market price is $12 per unit. For this range of prices, the price elasticity of supply is about _______

and it’s classified as _______.

A. 0.45; elastic

B. 2.0; inelastic

C. 2.2; elastic

D. 200; inelastic

E. 1; unit elastic