Help me please with economics test on elasticity

29. The price elasticity of demand is the: (2 Points) A .; (A) percentage ebonite in price/percentage change in quantity demanded. /'_'\\ I: (B) change in price/change in quantity demanded. A '3 (C) change in demand/change in price. /'_'\\ '1 (D) percentage change in price/percentage change in income. A " (E) percentage change in quantity demanded/percentage change in price. 30. The price elasticity of demand is equal to -2. It means that D417) (2 Points) /'_'\\ I: (A) if the price of a commodity increases by 0.5%, the quantity demanded will fall by 1%. A .; (B) if the price of a commodity decreases by 0.5%, the quantity demanded will increase by 2%. /'_'\\ '1 (C) if the price of a commodity increases by 0.5%, the quantity demanded will increase by 1%. IA ' (D) if the price of a commodity decreases by 0.5%, the quantity demanded will fall by 2%. /_"\\ (E) If the price of a commodity increases by 1%, the quantity demanded will fall by 1%. 31. All else equal, the price elasticity of demand tends to be higher: (2 Points) A '1._.5' (A) the more substitutes there are for the good or service. A u:._____.:u (B) the shorter the time period involved. A I:._____.:' (C) the more consumers perceive the good to be a necessity. A '1._.5' (D) the more broadly dened the market is. A '15' (E) the less important the product is in consumers' budgets. 32. The demand for a commodity will be more inelastic (2 Points) A '15' (A) the greater the number of substitutes A u:.____.:u (B) the fewer the number of substitutes A I:._____.:' (C) the greater is the price change A '15' (D) the smaller is the price change A I (E) the longer the time period involved 33. A politician suggests to reduce cigarette smoking by increasing tobacco taxes. It will probably take a fairly large tobacco tax to make much of a difference, because: (2 Points) A (A) price is irrelevant for consumers. A (B) demand for cigarettes is totally inelastic. /_'\\ _ (C) demand for cigarettes is relatively inelastic. /_'\\ 7 (D) supply of tobacco is relatively inelastic. A i. 7 (E) supply of tobacco is relatively elastic. 34. The consumers have a xed amount of money to buy a certain commodity. Within a certain range of prices, they will spend neither more nor less than this amount on it. Their demand in this price range would properly be designated as: (2 Points) /\"\\ (A) in equilibrium A ._ 5' (B) perfectly elastic "\\ _7 .v (C) perfectly inelastic *' (D) highly elastic but no perfectly so A ._ 5' (E) unit-elastic 35. Which of the following is most likely to have a high income elasticity of demand? (2 Points) " (A) fancy restaurant meals. 1' (B) lunches at fast food restaurants. 3 (C) brown bag lunches from home. a (D) apples. A (E) sardines. 36. The demand for food is generally: (2 Points) (A) income inelastic and price elastic. (B) income elastic arid price inelastic. (C) both income and price elastic. (D) both income and price inelastic. A (E) elastic in the short run, but inelastic in the long run. Use the following information to answer questions 37 and 38. The city is considering a fare hike for its city bus service. At the current fare of $0.50, daily ridership is 1000 people. The city estimates that if it raises fares to $1.00, ridership will decline to 600. 37. Using the midpoint method of calculating elasticity, the price elasticity of demand is: [5) (2 Points) A (A) o. l/'\\ (B) 0.75. A (C) 1.00. A (o) 5.00. A (E) 800. 38. If the city want's to raise more revenue from its bus system, it should: (2 Points) (A) raise the price to $1.00. (B) keep the price at $0.50 and wait for demand to increase. (C) first lower the price to attract riders, then gradually increase price. (D) first raise price to get revenues, then lower price after the buses are paid off. (E) offer discount coupons to attract ridership.39. If the price elasticity of demand is -O.5, then a 2% price hike will lead to a: (2 Points) A (A) 0.5% drop in quantity demanded. A (B) 1% drop in quantity demanded. r'_'\\ (C) 2% drop in quantity demanded. '1 (D) 4% drop in quantity demanded. /_\\ '1 (E) 4% increase in quantity demanded. 40. The price elasticity of demand is equal to (-0.25). The income elasticity of demand is equal to 0.8. What would be approximately the change in quantity demanded ceteris paribus [the other factors equal] after an increase in consumer income by 3% and the fall in price by 4%? D17) (2 Points) 1.4% 3,4% 7% 1% '' 0% 41. The price elasticity of demand for tobacco is equal to (-0.7). The income elasticity of demand equals 0.3. The price of tobacco has risen by 2%, and the income has increased by 3%. The quantity demanded [the other factors equal] has approximately (2 Points) (A) decreased by 1.5% (B) decreased by 0.5% O (C) not changed (D) increased by 0.5% O (E) increased by 1.5%42. If the consumer's income has increased from $100 to $110, and the quantity demanded increased from 10 to 12 units, the arc income elasticity is equal to (2 Points) 1A: 15 1,55 1,91 2.0 43. Of the following, the main reason why OPEC has been unable to keep oil prices high is that: [.53 (2 Points) /'\\ 1' (A) demand tends to become more elastic in the long run. A 1' (B) supply tends to become more elastic in the long run. A "_, " (C) government regulations have prevented it. IA '., " (D) massive new petroleum discoveries have increased the supply. /'\\ l (E) consumer boycotts have driven the price down. 44. Price elasticity of supply tends to be higher: (2 Points) O (A) the longer the time period. (B) the easier it is for more new firms to enter the industry. O (C) the more adaptable the firms can be to changing market conditions. (D) for manufactured goods than for antiques. (E) for all of the above. 17 45. A horizontal demand curve has a price elasticity of: ) (2 Points) O (A) zero. (B) between zero and one. O (C) one. O (D) between one and infinity. O (E) infinity. 146. A vertical supply curve has a price elasticity of: (2 Points) O (A) zero. O (B) between zero and one. (C) one. O (D) between one and infinity. O (E) infinity. 19 47. A straight-line (constant-slope) demand curve has an elasticity that: (2 Points) O (A) remains constant along its length. (B) increases as quantity demanded increases along its length. (C) decreases as quantity demanded increases along its length. (D) first increases then decreases as quantity demanded increases. (E) none of the above.I/_\\ l l/\"\\ l IA l _/_'\\ l /_'\\ P 32 SI P2 P1 D Q2 Q1 In the graph above, 51 shows the supply of a farm commodity before a farm price oor program has been implemented. 52 shows supply after the program is in effect. Use the diagram to answer questions 48 and 49: 48. Which of the following will be true of the farm price floor program? (2 Points) (A) farmers are allowed to produce more, thereby gaining higher total revenue (B) the supply of farm commodities is elastic in the short run and therefore total revenue will increase (C) revenue from P2Q2 is greater than revenue from P1Q1 (D) the supply of farm commodities is inelastic in the short run and therefore total revenue will increase (E) not enough information to say what will happen to the farmer's total revenue 49. In the short run, the supply of farm commodities is (2 Points) O (A) elastic because farmers cab always produce more O (B) similar to the supply of bicycles in a factory operating at less than full capacity O (C) inelastic because this year's crop is fixed O (D) immaterial because farmers can hedge (E) determined by the commodities exchange 22 50. The elasticity of demand for cigarettes by a non-smoker is [,) (2 Points) O (A) unitary price elastic. O (B) perfectly price inelastic (C) relatively price elastic. O (D) perfectly price elastic. O (E) does not exist