Part II. Multiple Choice Questions Directions: Please read the statements carefully. Encircle the correct answer. 1. In the market, the price elasticity for the demand of canned goods sold by Aling Puring Grocery Store is the: a) ratio of the percentage change in quantity demanded for the goods to the percentage change in its price b) responsiveness of revenue to a change in quantity of the canned goods c) ratio of the change in quantity demanded divided by the change in its price of the canned goods d) response of revenue to a change in the price 2. If demand for sacks of rice in Aling Puring Grocery Store is price elastic, then a: a) rise in the price of sacks of rice will raise total revenue of the grocery b) fall in the price of sacks of rice will raise total revenue of the store c) fall in the price of sacks of rice will lower the quantity demanded d) fise in the price of sacks of rice won't have any effect on total revenues 3. If the cross-price elasticity between soap bar and liquid soap commodities is 1.5, a) the two goods are luxury goods b) the two goods are complements c) the two goods are substitutes d) the two goods are normal goods 4. The price elasticity of demand for a certain good tends to be: a) smaller in the long run than in the short run b) smaller in the short run than in the long run c) larger in the short run than in the long run d) unrelated to the length of time 5. If the price elasticity of supply of cup noodles is 0.60 and the price increase by 3 percent, then the quantity supplied for cup noodles increases by how by? a) 0.60 percent. b) 0.20 percent c) 1.8 percent d) 18 percent Show me your solution here