Chapter 4: Độ co giãn và ứng dụng (Elasticity)_

When referring to "the elasticity of supply or demand", what does it tell us?

• Measures the potential for market development in the future.

• Measures the level of government intervention in the market.

• Measures the rate of economic development.

• Measures the response of buyers and sellers to changes in market conditions.

The elasticity of demand includes which of the following types?

• Income elasticity of demand

• Price elasticity of demand.

• Cross elasticity of demand.

• All of the above are correct.

We have a demand function for product A in the form:

Q(D) = 50 - 2*P

Calculate the price elasticity of demand at the price level P = 20.

• E(D) = 10

• E(D) = -4

• E(D) = 4

• E(D) = -2

We have a demand function for product B in the form:

P = -0.5 * QD + 40.

Calculate the elasticity of demand at the price level P = 20.

• E(D) = -1

• E(D) = -0.25

• E(D) = 1

• E(D) = 0.25

"Price elasticity of supply" indicates what?

• Measures the response of buyers to price.

• Measures the response of sellers to price.

• Measures the response of both buyers and sellers to price.

• Measures the response of sellers to income.

What factors affect the elasticity of demand?

• Consumer income.

• Availability of substitute goods.

• Time

• All of the above are correct

An increase in price increases total revenue when?

• Demand is highly elastic with respect to price.

• Demand is unit elastic with respect to price.

• Demand is inelastic with respect to price.

• All of the above cases can be true.

If a 30% price increase leads to a 15% increase in supply, what can we conclude?

• The price elasticity of supply is 0.5 and is inelastic.

• The price elasticity of supply is 2 and is elastic.

• The price elasticity of demand is -1 and is unit elastic.

• The price elasticity of demand is -0.5 and is inelastic.

The elasticity of demand for air conditioning units is -2, what does this mean?

• When the price increases by 10%, the quantity demanded decreases by 20%

• When the price increases by 10%, the quantity demanded increases by 20%

• When the price increases by 20%, the quantity demanded decreases by 10%

• When the price increases by 20%, the quantity demanded increases by 10%

The elasticity coefficient of the bridge according to the income of good Y is E(I)= -0.4, what type of good is Y?

• Secondary goods.

• Normal goods.

• Luxury goods.

• No correct answer.