Open Quick Links Quick Links Page Landmarks Content Outline Keyboard Shortcuts Logout Global Menu Daniel RahmanzadehActivity Updates Home Help Top Frame Tabs Home Tab Courses Tab 2 of 1 of 6 6 (active tab) Community Tab Penfield Library Services Tab Blackboard Help 3 of 6 Tab 4 of 6 5 of 6 Tab 6 of 6 Current Location 1. (201709-ECO101-800)Principles of Microeconomics 2. 3. 4. 5. Content 3. Elasticity Required quizzes Take Test: Practice Quiz 3b Menu Management Options Course Menu: (201709-ECO101-800)Principles of Microeconomics Course Home Getting Started Course Information Help Learning Modules Content Class recordings Discussions My Grades Communication Course Messages Take Test: Practice Quiz 3b Content Assistive Technology Tips [opens in new window] Test Information Instructions Description Instructions Multiple Attempts This test allows multiple attempts. Force Completion This test can be saved and resumed later. Question Completion Status: 1 2 3 4 5 6 7 8 9 10 Save All Answers Save and Submit Question 1 1. If the quantity effect outweighs the price effect of a price decrease, then: A. the good is price elastic. B. total revenue will rise. C. the measured elasticity must be more than 1. D. All of these are true. Save Answer 12 points Question 2 1. Suppose Nike athletic shoes knows it is operating in the elastic region of the demand curve for one of its products. In order to increase its total revenue, Nike shoes must A. decrease price. B. increase price. C. leave price unchanged. D. ignore elasticity in this region because it is so unpredictable. E. ignore elasticity in this region because it has no impact on revenue. Save Answer 12 points Question 3 1. If the quantity effect outweighs the price effect of a price increase, then: A. the good is price elastic. B. the good is price inelastic. C. the good is price unit elastic. D. Any of these could be true. Save Answer 12 points Question 4 1. If the price of a good decreases by 5 percent and total revenue does not change, then the price elasticity of demand is A. equal to 0.05. B. perfectly elastic. C. perfectly inelastic. D. equal to 1.05. E. unit-elastic. 12 points Save Answer Question 5 1. Which of the following statements best describes how a business determines whether to increase or decrease the price of the product it sells in order to increase revenues? A. If the price elasticity of demand is greater than 1, total revenue and price changes move in opposite directions. B. If the price elasticity of demand is greater than 1, total revenue and price changes move in the same direction. C. If the price elasticity of demand is less than 1, total revenue and price changes move in opposite directions. D. The price elasticity of demand has little to do with total revenue, and a firm must focus solely on its cost structure to increase revenues. E. It will depend on how many firms are competing in the market. Save Answer 12 points Question 6 1. If the price elasticity of demand for peanuts is equal to 1/4 then A. a 1 percent increase in price will result in a 4 percent decrease in quantity. B. a 1 percent increase in quantity will result in a 4 percent increase in price. C. demand is elastic. D. an increase in the price of peanuts will lead to an increase in total revenue for peanut producers. E. None of the above. Save Answer 12 points Question 7 1. A decrease in price: A. causes a decrease in revenue due to the quantity effect. B. causes an increase in revenue due to the price effect. C. does not necessarily have to experience a quantity effect when the demand curve is downward sloping. D. None of these is true. Save Answer 12 points Question 8 1. If the university movie theater has decided to increase ticket prices in order to pay for a new movie projector, then we can conclude that A. the demand for movie viewing at the university is inelastic. B. tuition and fees will drop. C. the theater has too many seats to satisfy the demand for movie viewing. D. the program council chairman should be fired. E. the demand for movie viewing at the university is elastic. Save Answer 12 points Question 9 1. If the price effect outweighs the quantity effect of a price decrease, then: A. total revenue will decrease. B. the good is price inelastic. C. the measured elasticity must be greater than 1. D. All of these are true. 12 points Save Answer Question 10 1. A price increase will cause an increase in revenue: A. when the price effect outweighs the quantity effect. B. when the quantity effect outweighs the price effect. C. when demand is perfectly elastic. D. when demand is unit elastic. 12 points Save Answer Save and Submit Click Save and Submit to save and submit. Click Save All Answers to save all answers. Save All Answers Save and Submit