2b Elasticities

If the price elasticity of demand for a certain beer is 0.3, then a change in the price of a bottle from $ 2 to $ 1.80 increases quantity demanded by approximately
1. 3 %
2. 6 %
3. 0.33 %
4. 40 %
The demand for home-delivered pizzas has a price elasticity of 1.2. Therefore, the demand for such pizzas is
1. inelastic
2. elastic
3. unit elastic
4. perfectly elastic
A producer of e-cars lowers the price which results in an increase in total revenue. Therefore
1. these e-cars are normal goods
2. these e-cars are inferior goods
3. the demand for these e-cars is elastic
4. the demand for these e-cars is inelastic
A producer of bycicles lowers the price, but total revenue remains unchanged. This means that
1. the demand for these bycicles is inelastic
2. the demand for these bycicles is elastic
3. the demand for these bycicles is perfectly elastic
4. the demand for these bycicles is unit elastic
The cross-price elasticity of demand for the goods A and B is 0.5. If the price of A increases, then
1. the quantity demanded for B increases, the goods being complements
2. the quantity demanded for B decreases, the goods being substitutes
3. the quantity demanded for B increases, the goods being substitutes
4. the quantity demanded for B decreases, the goods being complements
In which case is the demand elastic?
1. when the price elasticity of demand is greater than 1
2. when the price elasticity of demand is less than 1
3. when the price elasticity of demand is 1
4. when the price elasticity of demand is 0
If the demand for a good is elastic, then a 6 % decrease in the price causes
1. an increase in the quantity demanded of exactly 6 %
2. an increase in the quantity demanded of more than 6 %
3. no change in the quantity demanded
4. an increase in the quantity demanded of less than 6 %
If a price decreases, total revenue will
1. increase if the demand is elastic
2. in any case decrease
3. in any case increase
4. increase if the demand is inelastic
Along a linear demand curve, the price elasticity of demand
1. is small at high prices
2. is always equal to 1
3. is always 0
4. is small at low prices
Oranges are normal goods if the ......... for oranges is ..........
1. price elasticity of demand; negative
2. income elasticity of demand; positive
3. income elasticity of demand; negative
4. price elasticity of demand; positive
If two goods have a negative cross-price elasticity of demand, then these are
1. normal goods
2. complements
3. substitutes
4. luxury goods
If a 20 % decrease in the price of good A causes a 10 % increase in the quantity demanded of good B, then the cross-price elasticity of demand between the two goods is
1. - 0.5
2. - 2.0
3. + 2.0
4. + 0.8
If the supply is perfectly inelastic, then a 3 % increase in the price causes .......... in the quantity supplied.
1. less than a 3 % increase
2. no change
3. more than a 3 % increase
4. a 5 % increase
Which is a good argument for a tax on tabacco products, put forward by the finance minister?
1. the demand is elastic
2. the demand is inelastic
3. the demand is unit elastic
4. the demand is perfectly elastic
If the price of a good rises by 5 %, then the quantity demanded falls from 100 to 91. Therefore
1. the price elasticity of demand is 0
2. the demand is inelastic
3. the demand is elastic
4. it is a normal good