Elasticity Fun Quiz

Suppose the price of beans rises from $1.00 a pound to $2.00 a pound, quantity demanded falls from 10 units to 6 units, the coefficient of elasticity of demand for beans using the mid-point method elasticity approach is

• 0.75
• 1.00
• 0.50
• 1.25

If the price of oranges increases from $0.50 to $1.00 per orange, and the quantity demanded decreases from 20 units to 15 units, what is the coefficient of elasticity of demand for oranges using the mid-point method?

• 0.80

• 1.20

• 0.67

• 1.50

When the price of a movie ticket rises from $10 to $15, and the quantity demanded drops from 100 tickets to 70 tickets, calculate the elasticity of demand for movie tickets using the mid-point method.

• 0.80

• 1.00

• 1.50

• 1.20

Assuming the price of a loaf of bread increases from $2.00 to $3.00, resulting in a decrease in quantity demanded from 50 loaves to 30 loaves, what is the elasticity of demand for bread using the mid-point method?

• 0.75

• 1.25

• 1.50

• 1.00

When purchases of tennis socks decline following an increase in the price of tennis sneakers (other things remaining equal), the relationship between these two items can be described as

• complementary goods
• luxury goods
• independent goods
• substitute goods

If the price of apples increases from $1.50 to $2.00 per apple, and the quantity demanded decreases from 30 units to 20 units, what is the coefficient of elasticity of demand for apples using the mid-point method?

• 0.75

• 1.00

• 1.25

• 1.50

When the price of coffee rises from $3.00 to $4.00 per cup, and the quantity demanded falls from 40 cups to 25 cups, calculate the elasticity of demand for coffee using the mid-point method.

• 0.85

• 1.10

• 1.50

• 1.20

As the price of butter increases from $2.50 to $3.50, resulting in a decrease in quantity demanded from 15 units to 10 units, what is the elasticity of demand for butter using the mid-point method?

• 1.25

• 1.50

• 1.00

• 0.67

Suppose the price of crude oil drops from $150 a barrel to $120 a barrel. The quantity bought remains unchanged at 100 barrels. The coefficient of price elasticity of demand in this example would be

• -1
• 1
• 0.5
• 0

When the price of a smartphone increases from $600 to $750, and the quantity demanded decreases from 200 units to 150 units, what is the elasticity of demand for smartphones using the mid-point method?

• 0.80

• 1.00

• 1.20

• 1.50