6. The price elasticity of demand measures the

a. responsiveness of a good's price to a change in quantity demanded

b. adaptability of suppliers when a change in demand alters the price of a good

c. responsiveness of quantity demanded to a change in a good's price

d. adaptability of buyers when there is a change in demand

e. responsiveness of quantity supplied to a change in quantity demanded

7. If the price elasticity of demand for Cheer detergent is -3.0, then a

a. 12 percent drop in price leads to a 36 percent rise in the quantity demanded

b. 12 percent drop in price leads to a 4 percent rise in the quantity demanded

c. $1,000 drop in price leads to a 3,000-unit rise in the quantity demanded

d. $1,000 drop in price leads to a 333-unit rise in the quantity demanded

e. 12 percent rise in price leads to a 36 percent rise in the quantity demanded

8. If the price of a certain brand of sneakers falls from $27.50 to $22.50, and the quantity demanded by consumers increases from 15 to 25 pairs per week, then using the midpoint formula, the price elasticity of demand is

a. -0.25

b. -1.00 c. -2.75

d. -1.50 e. -2.50

9. If the demand curve is a straight line with a negative slope, then demand is more elastic at higher prices.

a. True

b. False

10. A local store noticed that when it increased the price of milk from $2.50 per gallon to $3.50 per gallon, it sold the same amount of milk per week (165 gallons). Since everything else remained the same, we would say the

a. demand for milk is perfectly elastic

b. demand for milk is elastic

c. demand for milk is perfectly inelastic

d. demand for milk is unitary elastic

e. law of supply does not apply in this situation