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WorksheetsElasticity-Part Three
Total questions: 10
Worksheet time: 5mins
If the crossprice elasticity of demand between two goods is positive, the goods are likely to be complements.
True
False
If the price elasticity of supply for blue jeans is 1.3, an increase in the price of blue jeans of 10 percent would increase the quantity supplied of blue jeans by 13 percent.
True
False
If the income elasticity of demand for a good is negative, it must be
an elastic good
an inferior good
a normal good
a luxury good
If a supply curve for a good is price elastic, then
the quantity supplied is sensitive to changes in the price of that good.
the quantity demanded is insensitive to changes in the price of that good.
the quantity demanded is sensitive to changes in the price of that good.
the quantity supplied is insensitive to changes in the price of that good.
If the demand for a good is price inelastic, an increase in its price will increase total revenue in that market.
True
False
Price elasticity of supply is the responsiveness of
demand to a change in price.
price to a change in supply.
quantity supplied to a change in price.
price to a change in supply.
If the supply curve of a product is vertical, price elasticity of supply is equal to
0.
1.
-1.
infinity.
Suppose a decrease in demand causes the price to decrease from $4 to $3 and the quantity to decrease from 1,000 to 700. Then, at the midpoint between these two prices, the elasticity of supply equals
0.81
2.83
0.18
1.24
Supply is more price elastic if more time is available as the firms can adjust the supply when price is increasing.
True
False
Income elasticity can be measured by
comparing the percentage change in demanded with the percentage change in income
comparing the percentage change in quantity demanded with the percentage change in price
comparing the percentage change in quantity demanded with the percentage change in income
comparing the percentage change in quantity supply with the percentage change in income
