The price elasticity of demand coefficient measures: The price elasticity of demand coefficient measures: |
A |

The basic formula for the price elasticity of demand coefficient is: |
B |

The demand for a product is inelastic with respect to price if: |
A |

If the price elasticity of demand for a product is 2.5, then a price cut from $2.00 to $1.80 will: |
C |

Suppose that as the price of Y falls from $2.00 to $1.90 the quantity of Y demanded increases from 110 to 118. Then the price elasticity of demand is: |
c |

Which of the following is not characteristic of the demand for a commodity that is elastic? |
D |

If the demand for product X is inelastic, a 4 percent increase in the price of X will: |
B |

If a firm can sell 3,000 units of product A at $10 per unit and 5,000 at $8, then: |
c |

A perfectly inelastic demand schedule: |
b |

The larger the coefficient of price elasticity of demand for a product, the: |
d |

Most demand curves are relatively elastic in the upper-left portion because the original price: |
d |

The price elasticity of demand for widgets is 0.80. Assuming no change in the demand curve for widgets, a 16 percent increase in sales implies a: |
D |

Suppose Aiyanna’s pizzeria currently faces a linear demand curve and is charging a very high price per pizza and doing very little business. Aiyanna now decides to lower pizza prices by 5 percent per week for an indefinite period of time. We can expect that each successive week: |
C |

The price elasticity of demand of a straight-line demand curve is: |
A |

A leftward shift in the supply curve of product X will increase equilibrium price to a greater extent the: |
d |

If the demand for bacon is relatively elastic, a 10 percent decline in the price of bacon will: |
b |

The price elasticity of demand is: |
a |

For a linear demand curve: |
d |

The price of product X is reduced from $100 to $90 and, as a result, the quantity demanded increases from 50 to 60 units. Therefore demand for X in this price range: |
d |

Suppose we find that the price elasticity of demand for a product is 3.5 when its price is increased by 2 percent. We can conclude that quantity demanded: |
b |

The price elasticity of demand for beef is about 0.60. Other things equal, this means that a 20 percent increase in the price of beef will cause the quantity of beef demanded to: |
b |

The elasticity of demand: |
C |

If a demand for a product is elastic, the value of the price elasticity coefficient is: |
b |

The concept of price elasticity of demand measures: |
d |

Suppose the price of local cable TV service increased from $16.20 to $19.80 and as a result the number of cable subscribers decreased from 224,000 to 176,000. Along this portion of the demand curve, price elasticity of demand is: |
b |

If the price of hand calculators falls from $10 to $9 and, as a result, the quantity demanded increases from 100 to 125, then: |
a |

A perfectly inelastic demand curve: |
b |

Moving upward on a downward-sloping straight-line demand curve, we find that price elasticity: |
b |

If the price elasticity of demand for gasoline is 0.20: |
c |

In which price range of the accompanying demand schedule is demand elastic?
A) $4-$3 B) $3-$2 C) $2-$1 |
a |

When the percentage change in price is greater than the resulting percentage change in quantity demanded: |
c |

Suppose the price elasticity coefficients of demand are 1.43, 0.67, 1.11, and 0.29 for products W, X, Y, and Z respectively. A 1 percent decrease in price will increase total revenue in the case(s) of: |
a |

Which of the following statements is not correct? |
b |

In which of the following instances will total revenue decline? |
D |

If a firm’s demand for labor is elastic, a union-negotiated wage increase will: |
C |

# ECON chpt 3 practice test

### Share This

## Unfinished tasks keep piling up?

Let us complete them for you. Quickly and professionally.

Check Price