Font size
WorksheetsPearson ch 4 Elasticities review 10
Total questions: 21
Worksheet time: 15mins
You are on a committee that is considering ways to raise money for your House's fundraiser. You would recommend increasing the price of raffle tickets only if you thought the demand curve for these tickets was realistically
Inelastic
Elastic
Perfectly Elastic
The elasticity of supply measures the responsiveness of
quantity supplied to changes in price.
quantity demanded to changes in supply.
quantity supplied to changes in demand.
The above figure illustrates the demand curve for a good. The good has
many substitutes.
only one substitute.
no substitutes.
Elasticity is another word for ________________.
Rigidity.
Seasonal change.
Responsiveness.
what factor has the greatest influence on elasticity/ inelasticity of supply?
profit
time
price
When is the price elasticity of demand for a good likely to be high? (higher the number the more elastic )
When expenditure on the good is a small part of total expenditure
When there are many substitutes for the good
When the good is habit-forming
What simple method measures demand elasticity?
Inverse Demand Theory
Total Revenue method
Equilibrium Price Test
Determinants of supply include: there is more than one answer
length of time
income levels
spare capacity
mobility of factors of production
advertising
The quantity of peanuts supplied increased from 40 tons/week 50% increase to 60 tons/week when the price of peanuts increased from $4/ton to $5/ton. 20% The price elasticity of supply for peanuts over this price range is:
Elastic
Inelastic
Unit Elastic
Perfectly Inelastic
which is more likely to have the most inelastic demand on Valentine's Day
red roses
orchids
daisies
daffodils
Elasticity refers to
how producers of goods and services react to price changes
responsiveness of consumers of goods and services to price changes
how far a supply of scarce goods can be stretched
how often the price of a good or service changes when quantity demanded changes
A change in the price of a good causes people to buy more or less of an item. This best describes the concept of
the demand curve
change in quantity demanded
change in demand
elasticity
Much of the tea in the U.K. is imported from India. If wages for Indian tea workers rose, thus increasing input costs, how would this effect supply of tea in the U.K.?
Supply would increase
Supply would Decrease
Supply would stay the same
India is not a real country
In the short term, supply tends to be inelastic. In the long term, supply tends to be more elastic. Thus, the most important factor determining elasticity of supply is
Time
Price
Consumer
Quantity
Movement along a supply curve demonstrates
a change in quantity supplied
a change in quantity demanded
a change in supply
a change in demand
A hurricane wipes out an orange crop in Florida, sharply affecting the supply of oranges. Which chart demonstrates this concept?
A popular musical act announces a concert at a 10,000 seat venue. Prices for tickets skyrocket so the venue announces that there will be 500 standing room only tickets offered. What concept does this demonstrate?
elastic supply
inelastic supply
change in supply
change in quantity supplied
if UK had a major foot and mouth disaster - what would happen to the demand for Australian beef
demand in UK would decrease
demand in Australia would increase
export sales of beef to UK would increase
all of these options
the government decide to build more public housing to cope with the housing crisis -
supply would be relatively inelastic in the LR
supply would be relatively inelastic in the SR
demand would increase
demand would extend
what are the objectives of a successful market for consumers
low price , quality, choice
more goods at lower prices
innovation, technical efficiency , big businesses
