Mth 171

In imperfect competition makets, the supplier cannot control over the price?

• True

• False

The demand curve in imperfect competition markets often slopes downward? True or False

• True

• False

The demand curve in perfect competition market is similar to the MR curve? True or False

• True

• False

In a monopoly market, the total revenue only slopes upward? True or False

• True

• False

PED is defined to be the amount of change in quantity divided by that in price. True or false?

• True

• False

Demand is called elastic when the absolute value of PED is larger than 1. True or false?

• True

• False

In general, "elasticity" can measure

• A. whether a price increase causes quantity demanded to increase or decrease

• B. the strength of an economy's tendency to recover from recession

• C. the responsiveness of decision makers to economic changes in prices

Price elasticity of demand is NOT influenced by

• a. the number of substitutes available

• b. the proportion of the consumer's budget spent on the good

• c. the length of the time period under consideration

• d. the units of measurement used for price or for quantity demanded

In calculating price elasticity of demand, we use average price and average quantity as our base value because

• A. it reduces the complexity of the formula and makes the calculation easier

• B. the resulting measure is then not influenced by whether price is rising or falling

• C. we would get the same answer if we use the initial price and quantity

PED is always negative because as price increases, quantity demanded always decreases and vice versa. True or false

• True

• False