MCQ Questions
Q.1.
the price elasticity of demand coefficient measures:
  • 0%
    responsive the quantity supplied of x is to changes in the price of x.
  • 0%
    negative, but the minus sign is ignored.
  • 0%
    buyer responsiveness to price changes.
  • 0%
    decrease by approximately 12 percent
Q.2.
a leftward shift in the supply curve of product x will increase equilibrium price to a greater extent the:
  • 0%
    an increase in price will increase total revenue
  • 0%
    the elasticity coefficient is less than one.
  • 0%
    negative, indicating complementary goods.
  • 0%
    more inelastic the demand for the product.
Q.3.
moving upward on a downward-sloping straight-line demand curve, we find that price elasticity:
  • 0%
    increase the quantity demanded by about 25 percent
  • 0%
    increase the amount demanded by more than 10 percent.
  • 0%
    increases continuously.
  • 0%
    greater than on
Q.4.
if a demand for a product is elastic, the value of the price elasticity coefficient is:
  • 0%
    decrease the quantity of x demanded by less than 4 percent.
  • 0%
    greater their substitutability.
  • 0%
    increase the amount demanded by more than 10 percent.
  • 0%
    greater than on
Q.5.
a perfectly inelastic demand schedule:
  • 0%
    can be represented by a line parallel to the vertical axis.
  • 0%
    responsive the quantity supplied of x is to changes in the price of x.
  • 0%
    the demand for the product is inelastic in this price range.
  • 0%
    quantity demanded of x/percentage change in price of y.
Q.6.
if the income elasticity of demand for lard is 3.00, this means that:
  • 0%
    lard is an inferior good.
  • 0%
    demand is elastic
  • 0%
    price rises and demand is elastic
  • 0%
    relatively price inelastic.
Q.7.
in which of the following instances will total revenue decline?
  • 0%
    price rises and demand is elastic
  • 0%
    lard is an inferior good.
  • 0%
    buyer responsiveness to price changes.
  • 0%
    the elasticity coefficient is less than one.
Q.8.
if the price of hand calculators falls from $10 to $9 and, as a result, the quantity demanded increases from 100 to 125, then:
  • 0%
    decrease by approximately 12 percent
  • 0%
    increase the quantity demanded by about 25 percent
  • 0%
    demand is elastic
  • 0%
    lard is an inferior good.
Q.9.
the basic formula for the price elasticity of demand coefficient is:
  • 0%
    responsive the quantity supplied of x is to changes in the price of x.
  • 0%
    elastic in high-price ranges and inelastic on low-price ranges.
  • 0%
    percentage change in quantity demanded/percentage change in price.
  • 0%
    quantity demanded of x/percentage change in price of y.
Q.10.
the price elasticity of supply measures how:
  • 0%
    responsive the quantity supplied of x is to changes in the price of x.
  • 0%
    elastic in high-price ranges and inelastic on low-price ranges.
  • 0%
    buyer responsiveness to price changes.
  • 0%
    negative, but the minus sign is ignored.
Q.11.
the supply of known monet paintings is:
  • 0%
    relatively price inelastic.
  • 0%
    negative, but the minus sign is ignored.
  • 0%
    perfectly inelastic.
  • 0%
    lard is an inferior good.
Q.12.
suppose the supply of product x is perfectly inelastic. if there is an increase in the demand for this product, equilibrium price:
  • 0%
    an increase in price will increase total revenue
  • 0%
    will increase but equilibrium quantity will be unchanged.
  • 0%
    increase the quantity demanded by about 25 percent
  • 0%
    increase the amount demanded by more than 10 percent.
Q.13.
the larger the positive cross elasticity coefficient of demand between products x and y, the:
  • 0%
    relatively price inelastic.
  • 0%
    greater than on
  • 0%
    increase the quantity demanded by about 25 percent
  • 0%
    greater their substitutability.
Q.14.
if the price elasticity of demand for gasoline is 0.20:
  • 0%
    responsive the quantity supplied of x is to changes in the price of x.
  • 0%
    the demand for the product is inelastic in this price range.
  • 0%
    increase the quantity demanded by about 25 percent
  • 0%
    a 10 percent rise in the price of gasoline will decrease the amount purchased by 2 percent.
Q.15.
the price elasticity of demand for beef is about 0.other things equal, this means that a 20 percent increase in the price of beef will cause the quantity of beef demanded to:
  • 0%
    negative, but the minus sign is ignored.
  • 0%
    increase the quantity demanded by about 25 percent
  • 0%
    buyer responsiveness to price changes.
  • 0%
    decrease by approximately 12 percent
Q.16.
we would expect the cross elasticity of demand between dress shirts and ties to be:
  • 0%
    negative, indicating complementary goods.
  • 0%
    relatively price inelastic.
  • 0%
    negative, but the minus sign is ignored.
  • 0%
    buyer responsiveness to price changes.
Q.17.
when the percentage change in price is greater than the resulting percentage change in quantity demanded:
  • 0%
    an increase in price will increase total revenue
  • 0%
    increase the quantity demanded by about 25 percent
  • 0%
    will increase but equilibrium quantity will be unchanged.
  • 0%
    increase the amount demanded by more than 10 percent.
Q.18.
the demands for such products as salt, bread, and electricity tend to be:
  • 0%
    greater their substitutability.
  • 0%
    relatively price inelastic.
  • 0%
    negative, indicating complementary goods.
  • 0%
    greater than on
Q.19.
the main determinant of elasticity of supply is the:
  • 0%
    responsive the quantity supplied of x is to changes in the price of x.
  • 0%
    elastic in high-price ranges and inelastic on low-price ranges.
  • 0%
    amount of time the producer has to adjust inputs in response to a price change.
  • 0%
    percentage change in quantity demanded/percentage change in price.
Q.20.
which of the following is not characteristic of the demand for a commodity that is elastic?
  • 0%
    price rises and demand is elastic
  • 0%
    more inelastic the demand for the product.
  • 0%
    the elasticity coefficient is less than one.
  • 0%
    increase the quantity demanded by about 25 percent