Purchase Solution

price elasticity of demand

Not what you're looking for?

Ask Custom Question

6. The sensitivity of the change in quantity demanded to a change in price is called

A. income elasticity
B. cross-elasticity
C. price elasticity of demand
D. coefficient of elasticity

7. Two goods are ____________ if the quantity consumed of one increases when the price of the the other decreases.

A. normal
B. superior
C. complementary
D substitute

8. When a one percent change in price results in a one percent change in quantity demanded in the opposite direction, demand is

A. relatively inelastic
B. unitary elastic
C. perfectly elastic
D. perfectly inelastic

9. The owner of a produce store found that when the price of a head of lettuce was raised from 50 cents to $1, the quantity sold per hour fell from 18 to 8. The arc elasticity of demand for lettuce is
A. -0.56
B. -1.15
C. -0.8
D. -1.57

10. When total revenue increases from $18,000 to $26,000 when quantity increases from eight to ten, marginal revenue is equal to

A. $3,000
B. $4,000
C. $8,000
D. $2,600

Purchase this Solution

Solution Summary

Define unitary elastic.

Solution Preview

6. The sensitivity of the change in quantity demanded to a change in price is called
A. income elasticity
B. cross-elasticity
C. price elasticity of demand
D. coefficient of elasticity

by definition, this is price elasticity of demand

7. Two goods are ____________ if the quantity consumed of one increases when the price of the the other decreases.
A. normal
B. superior
C. complementary ...

Purchase this Solution


Free BrainMass Quizzes
Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.