If a local water company reduces their water consumption by 10 percent. If the PED for water is 0.25, by how much would you have to raise the price of water
10 percent
40 percent
25 percent
100 percent
A local doughnut shop reduced the price from $4 to $3.5, then, the daily sales increased from 300 to 400. This indicates that PED for the doughnuts was
elastic.
unitary elastic.
inelastic.
indeterminate; more information is needed to determine the price elasticity of demand.
If a demand curve for a good were completely vertical, it would be considered:
unitary elastic.
perfectly elastic.
perfectly inelastic.
relatively inelastic.
If the demand for cigarettes is highly inelastic, this indicates that:
a. higher cigarette prices will increase the demand for cigarettes.
c. the price elasticity coefficient of cigarettes equals 1.
d. the quantity of cigarettes purchased by consumers is not very responsive to a change in the price of cigarettes.
b. the price elasticity coefficient of cigarettes exceeds 1.
Price elasticity of demand refers to the ratio of the:
a. percentage change in price of a good in response to a percentage change in quantity demanded.
b. percentage change in price of a good to a percentage increase in income.
d. percentage change in the quantity demanded of a good to a percentage change in income.
c. percentage change in the quantity demanded of a good to a percentage change in its price.
If a decrease in the price of movie tickets increases the total revenue of movie theaters, this is evidence that demand is:
b. inelastic.
d. perfectly inelastic.
a. elastic.
c. unit elastic.
A perfectly inelastic demand curve has an elasticity coefficient of:
a. 0.
c. less than 1.
b. 1.
d. infinity.
If the percentage change in the quantity demanded of a good is less than the percentage change in price, price elasticity of demand is:
a. elastic.
b. inelastic.
d. unitary elastic.
c. perfectly inelastic.
If the percentage change in the quantity demanded of a good is greater than the percentage change in price, price elasticity of demand is:
a. elastic.
c. perfectly inelastic.
b. inelastic.
d. perfectly elastic.
. Along the elastic range of a demand curve, a price change causes:
c. no change in total revenue.
d. an unpredictable change in the total revenue.
b. a change in total revenue in the same direction.
a. a change in total revenue in the opposite direction.
Suppose the president of a college argues that a 25% tuition increase will raise revenues for the college. Then the president thinks that demand is:
a. elastic.
c. unitary elastic.
b. inelastic, but not perfectly inelastic
d. perfectly elastic.
If someone says, "Lowering the price won't sell a single additional Tucker car." The president believes that the price elasticity of demand is:
b. perfectly inelastic.
a. perfectly elastic.
d. elastic.
c. unitary elastic.
If the price elasticity of demand is computed for two products, and product A measures .79, and product B measures 1.6, then
a. product A is more elastic than product B.
c. consumers are more responsive to price changes in product A than in product B.
b. product B is more elastic than product A.
d. products A and B must be substitutes.
Price elasticity of demand measures:
a. the change in price brought about by a change in consumer demand.
b. how consumers change their purchases in response to a change in income.
c. how consumers change their purchases in response to a change in the price of a substitute good.
d. how consumers change their purchases in response to a change in the price of a product.
Which one of the following has the lowest elasticity?
Insulin 胰岛素
Christmas tree
Candy
Apples
【判断题】The more availability of substitutes, the higher PED of the product
YES
NO
【判断题】The higher percentage of income a product takes, the higher your PED of the product.
YES
NO
【判断题】The more necessary a product is, the higher your PED
YES
NO
【判断题】The more time passes after price of a product increases, the higher your PED becomes
YES
NO
【Guess ：判断题】Is there only one type of elasticity among a certain straight demand curve?
YES
NO
【不用计算】Suppose that Starbucks reduces the price from $3 to $2, then, the quantity sold increased from 350 to 450. The PED for Starbucks coffee is
1.6
0.625
【迅速:判断题】When price decreases from $10 to $9, quantity sold increases from 10 to 12. Sam used the midpoint formula and got a |PED|=0.6. Is Sam correct?
Yes
No