Question 1
Quiz 3
3 out of 3 points
Inelastic demand means that consumption will be unaffected by price changes.
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Question 2
3 out of 3 points
An income elasticity of 0.45 for all medical products implies that consumption will be
higher among low-income groups than among high-income groups.
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Question 3
The term “inelastic” is most commonly applied to price elasticities.
3 out of 3 points
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Question 4
A reduction in the net price to consumers will usually increase sales.
3 out of 3 points
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Question 5
Sales forecasts are applications of demand theory.
3 out of 3 points
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Question 6
3 out of 3 points
In the Rand Health Insurance Experiment, total spending was lower for consumers
who paid part of the cost of care.
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Question 7
To detect trends in sales, analysts usually use regression analysis.
3 out of 3 points
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Question 8
3 out of 3 points
Most estimates of the income elasticity imply that consumption of medical products
increases with income.
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Question 9
Forecasts combine history and judgment.
3 out of 3 points
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Latex gloves come in cases of 100. Last month, sales rose from 200 to 400, or from
two cases to four. Both equal a 100 percent increase
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Question 10
3 out of 3 points
