ECONOMICS

• A seller increases the price of a good by 5%, causing the quantity demanded to decrease by 16%. Calculate the coefficient of price elasticity of demand.

• -0.03

• -3

• 3

• 0.03

What is the term that describes the transformation of resources or inputs into goods and services?

• Manufacturing

• Production

• Operation

• Processing

• A 12% decrease in the price of a product results in a 15% increase in quantity demanded. Calculate the price elasticity of demand.

• 1.25

• -1.25

• 0.008

• -0.008

• What term describes a situation in which the quantity demanded changes proportionately to price changes?

• Inelastic Demand

• 1. Elastic Demand

• 1. Unit Elastic Demand

• Cross Elasticity

1. When the price of a good rises by 8%, and its quantity demanded falls by 24%, what is the price elasticity of demand?

• -3

• 3

• -0.33

• 0.33

• What is the term for a situation in which the percentage change in quantity demanded is less than the percentage change in price?

• Inelastic Demand

• Elastic Demand

• Unit Elastic Demand

• Cross Elasticity

How would you define a situation in which a small change in price leads to a theoretically infinite change in the quantity supplied?

• Perfectly Elastic Supply

• Inelastic Supply

• Unitary Elastic Supply

• Cross Elasticity of Supply

• If a 10% increase in the price of a good results in a 5% decrease in quantity demanded, what is the coefficient of price elasticity of demand?

• 1. -0.5

• 1. 0.5

• 1. -1

• 1. 1

What term is used to describe a scenario where the quantity demanded changes proportionately more than price changes?

• Inelastic Demand

• Elastic Demand

• Unit Elastic Demand

• Cross Elasticity

What economic measure is calculated by multiplying the price of a good by the quantity of that good sold?

• Net Income

• Total Cost

• Gross Profit

• Total Revenue