1) If the price elasticity of demand for Omo washing powder is 3, then a A R1,00 drop in price leads to a 300 unit rise in the quantity demanded B 12 percent drop in price leads to a 36 percent rise in the quantity demanded C 12 percent drop in price leads to a 4 percent rise in the quantity demanded D R1,00 drop in price leads to a 333 unit rise in the quantity demanded Question 2 of 20 If the owners of Ster Kinekor movie theatres discounted the admission fees by 30 per cent, average attendances would rise by 50 per cent Based on this data, it could be concluded that the price elasticity of demand for movie tickets is A elastic B perfectly elastic C inelastic D unitary elastic 3 The price elasticity demand for Mercedes Benz motor vehicles is probably A elastic and more elastic than the total demand for motor vehicles B elastic but less elastic than the total demand for motor vehicles C inelastic and less elastic than the total demand for motor vehicles D inelastic but more elastic than the total demand for motor vehicles Question 4 Which of the following goods will have a more price inelastic demand A the more necessary the product is for daily survival B goods that are bought in the long run C goods with no complements D goods with many substitutes Question 5 of 20 Price elasticity of demand gives us a measure of how sensitive or responsive the of a good or service is to a change in the of a good or service A demand price B price demand C price quantity demanded D quantity demanded price Question 6 of 20 Busani Bakery makes such great cinnamon rolls that consumers do not respond much at all to a change in the price If the owner is only interested in increasing revenue, he should A lower the price of the cinnamon rolls B leave the price of the cinnamon rolls unchanged C reduce costs D raise the price of the cinnamon rolls Question 7 of 20 Given that tomatoes have a price elastic demand the total revenue of tomato firms will A stay the same if the price rises B increase or decrease when the price rises C decrease if the price rises D increase if the price rises Question 10 of 20 If a 10 increase in income causes a 20 increase in the quantity demanded for a good or service It can be concluded that A the good or service is a necessity B the price elasticity of the good or service is greater than one C the income elasticity of the demand for the good or service is negative D the good or service is a luxury good Question 11 of 20 Which one of the following statements is correct A Certain goods with a negative income elasticity of demand can be considered normal goods B Goods with a negative income elasticity of demand are called inferior goods C When considering the price of related goods, one should consider the income elasticity of demand D Goods with a positive income elasticity which is greater than one are called essential goods

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1) If the price elasticity of demand for Omo washing powder is 3, then a A.R1,00 drop in price leads to a 300-unit rise in

1) If the price elasticity of demand for Omo washing powder is 3, then a

A.R1,00 drop in price leads to a 300-unit rise in the quantity demanded.
B.12 percent drop in price leads to a 36 percent rise in the quantity demanded.
C.12 percent drop in price leads to a 4 percent rise in the quantity demanded.
D.R1,00 drop in price leads to a 333-unit rise in the quantity demanded.

Question 2 of 20

If the owners of Ster Kinekor movie theatres discounted the admission fees by 30 per cent, average attendances would rise by 50 per cent. Based on this data, it could be concluded that the price elasticity of demand for movie tickets is

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

3.The price elasticity demand for Mercedes Benz motor vehicles is probably

A.elastic and more elastic than the total demand for motor vehicles.
B.elastic but less elastic than the total demand for motor vehicles.
C.inelastic and less elastic than the total demand for motor vehicles.
D.inelastic but more elastic than the total demand for motor vehicles.

Question 4

Which of the following goods will have a more price-inelastic demand?

A.the more necessary the product is for daily survival
B.goods that are bought in the long run
C.goods with no complements
D.goods with many substitutes

Question 5 of 20

Price elasticity of demand gives us a measure of how sensitive or responsive the ________ of a good or service is to a change in the _________ of a good or service.

A.demand; price
B.price; demand
C.price; quantity demanded
D.quantity demanded; price

Question 6 of 20

Busani Bakery makes such great cinnamon rolls that consumers do not respond much at all to a change in the price. If the owner is only interested in increasing revenue, he should

A.lower the price of the cinnamon rolls.
B.leave the price of the cinnamon rolls unchanged.
C.reduce costs.
D.raise the price of the cinnamon rolls.

Question 7 of 20

Given that tomatoes have a price elastic demand the total revenue of tomato firms will

A.stay the same if the price rises.
B.increase or decrease when the price rises.
C.decrease if the price rises.
D.increase if the price rises.

Question 10 of 20

If a 10% increase in income causes a 20% increase in the quantity demanded for a good or service. It can be concluded that

A.the good or service is a necessity.
B.the price elasticity of the good or service is greater than one.
C.the income elasticity of the demand for the good or service is negative.
D.the good or service is a luxury good.

Question 11 of 20

Which one of the following statements is correct?

A.Certain goods with a negative income elasticity of demand can be considered normal goods.
B.Goods with a negative income elasticity of demand are called inferior goods.
C.When considering the price of related goods, one should consider the income elasticity of demand.
D.Goods with a positive income elasticity which is greater than one are called essential goods.