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ECN60104 Microeconomics Tutorial 5

Total questions: 12

Worksheet time: 3600secs

Name
Class
Date
1.

If the rise in price of Samsung laptops increases the demand for Asus notebooks, we could say that the two goods are......

a)

substitutes

b)

complements

c)

inferior goods

d)

normal goods

2.
If the rise in price of Samsung laptops increases the demand for Asus notebooks, the cross elasticity would have.......
a)
a positive value
b)
an elastic value
c)
neither positive nor negative value
d)
a negative value
3.

If the price elasticity of demand for Proton cars is -1.5, we could say that demand for the good is......

a)

relatively price inelastic

b)

relatively price elastic

c)

is unitary elastic

d)

is cross inelastic

4.
Demand for necessities like bread and rice tend be goods which are.......
a)
relatively price inelastic
b)
relatively price elastic
c)
unitary price elastic
d)
none of the above
5.

If the rise in price for notebooks reduces the demand for external USB hard disk drives, we could say that the two goods are........

a)

inferior goods

b)

normal goods

c)

complements

d)

substitutes

6.
The price elasticity of demand would always have a negative value because......
a)
the fall in price will always increase total revenue
b)
the rise in price will always reduce total revenue
c)
demand and price tend to be negatively related
d)
price and demand tend to have high elasticity
7.

According to the diagram, a fall in price will....

a)

result in a higher increase in quantity demanded

b)

result in a smaller increase in quantity demanded

c)

result in a increase rise in quantity demanded by equal proportion

d)

will not result in an increase in quantity demanded

8.

According to the diagram, a rise in price will....

a)

result in a smaller fall in quantity demanded

b)

result in a bigger fall in quantity demanded

c)

result in a fall in quantity demanded by an equal proportion

d)

result in a no change in quantity demanded

9.

Using the mid point formula, calculate the price elasticity of demand with the information given in the diagram.

a)

15.39

b)

85.7

c)

0.18

d)

5.56

10.
The demand curve in the diagram is ............
a)
fairly elastic
b)
fairly inelastic
c)
unitary elastic
d)
perfectly elastic
11.

Looking at the demand curve in the diagram we can conclude that consumers of this good......

a)

are not very responsive to price changes

b)

are relatively sensitive to price changes

c)

would not be responsive to price changes at all

d)

would be infinitely responsive to price changes

12.
The demand curve in the diagram is said to .......
a)
relatively price elastic 
b)
relatively price inelastic 
c)
perfectly price inelastic
d)
perfectly price elastic