153045607590105Q star to Figure 615. For a price oor to be binding in this market, it would have to be set at C) a. any price below $3. I) b. a price between $2 and $3. 3 c. a price between $3 and $4. I) d. any price above $3. The price elasticity of demand measures 0 a. buyers' responsiveness to a change in the price of a good. 0 b. the extent to which demand increases as additional buyers enter the market. 0 c. how much more of a good consumers will demand when incomes rise. 0 d. the movement along a supply curve when there is a change in demand. For a good that is a necessity, demand 0 a. tends to be inelastic. O b. tends to be elastic. O c. has unit elasticity. 0 d. cannot be represented by a demand curve in the usual way. Which of the following is likely to have the most price elastic demand? 0 a. clothing 0 b. blue jeans 0 c. Tommy Hilger jeans 0 d. All three would have the same elasticity of demand because they are all related. When the price of candy bars is $1.00, the quantity demanded is 500 per day. When the price falls to $0.80, the quantity demanded increases to 600. Given this information and using the midpoint method, we know that the demand for candy bars is O a.inelastic. O b. elastic. O (1. unit elastic. 0 d. perfectly inelastic. When the price of a good is $5, the quantity demanded is 100 units per month; when the price is $7, the quantity demanded is 80 units per month. Using the midpoint method, the price elasticity of demand is about 0 a. 0.22. O b. 0.67. O C. 1.33. Q d. 1.50. When the price of an eBook is $15.00, the quantity demanded is 400 eBooks per day. When the price falls to $10.00, the quantity demanded increases to 700. Given this information and using the midpoint method, we know that the demand for eBooks is O a.inelastic. O b. elastic. O {1. unit elastic. 0 d. perfectly inelastic. Suppose the price of a bag of tortilla chips decreases from $3.00 to $2.50 and, as a result, the quantity of tortilla chips demanded increases from 200 bags to 300 bags. Using the midpoint method, the price elasticity of demand for tortilla chips in the given price range is a. 0.33. b. 0.45. c. 2.20. 0000 d. 3.00. Table 5-5 Price otal Revenue $5 $70 $6 $78 $7 $84 $8 $88 $9 $90 $10 $90 efer to Table 55. As price rises from $5 to $6, the price elasticity of demand using the midpoint method is approximately 3 61.0.07. 3 [10.18. 3 C. 0.41. :3 d. 2.45. Table 55 Pce otal Revenue $5 $70 $6 $78 $7 $84 $8 $88 $9 $90 $10 $90 Refer to Table 55. As price rises from $7" to $8, the price elasticity of demand using the midpoint method is approximately 0 a.0.09. O b.0.58. 0 (1.0.65. 0 d. 1.53. Table 5-5 Pce otal Revenue $5 $70 $6 $78 $7 $84 $8 $88 $9 $90 $10 $90 Refer to Table 55. Demand is unit elastic when quantity demanded changes from O a.9t08. O b. 10 to 9. O c.10toll. 0 d. There is not enough mformation given to determine the correct answer. Table 5-5 Price otal Revenue $5 $70 $6 $78 $7 $84 $8 $88 $9 $90 $10 $90 Refer to Table 55. When price is between $5 and $9, demand is O a. elastic. O b. unit elastic. O c. inelastic. Q d. There is not enough information given to determine whether demand is elastic, unit elastic, or inelastic
