Economics Final Morris 25

Which of the following best defines elasticity of demand?

• The quantity demanded for a good or service varies inversely with price

• The quantity supplied of a good or service varies positively with price

• How a change in price effects the quantity demanded for a good or service

• How a change in price effects the quantity supplied for a good or serve

Which of the following best defines elastic?

• Perfectly horizontal; any change in price reduces quantity to zero; at the correct price, quantity is infinite

• A small change in price causes a large change in quantity

• Perfectly vertical; a change in price does not change quantity

• A small change in price causes a small change in quantity

Which of the following does NOT shift the supply curve for a product?

• Costs of production

• technology

Which of the following would NOT cause an increase in the supply of a product?

• Decrease in the price on input resources

• A decrease in market price

• A more efficient work force

• An increase in overall consumer income

Which is an example of inelastic supply?

• Kites

• Candy

• Apple orchard

• Hair cuts

Which of the following best defines elasticity of supply?

Answer explanation

Which of the following does NOT affect the elasticity of demand?

• The presence of substitutes

• The cost of production for the good or service

• The price of the good or service

• The relative importance of the good or service to the consumer

Which of the following best defines quantity supplied?

• The amount of good or service consumers are willing and able to buy at a given price

• The amount of a good or service businesses are willing and able to produce at a given price

• A graph showing how the amount of a good or service demanded changes with a change in price

• A graph showing how the amount of a good or service supplied changes with a change in price

Which of the following best defines supply curve?

• The amount of a good or service consumers are willing and able to buy at a given price

• The amount of a good or service businesses are willing and able to produce at a given price

• A graph showing how the amount of a good or service demanded changes with a change in price

• A graph showing how the amount of a good or service supplied changes with a change in price

Which of the following defines demand curve?

• The amount of a good or service consumers are willing and able to buy at a given price

• The amount of a good or service businesses are willing and able to produce at a given price

• A graph showing how the amount of a good or service demanded changes with a change in price

• A graph showing how the amount of a good or service supplied changes with a change in price