QUESTION 1

1. Salt

QUESTION 2

1. New cars

QUESTION 3

1. Pork chops

QUESTION 4

1. Caribbean vacations

QUESTION 5

1. Insulin

QUESTION 6

1. Insulin at one of four drug stores in a mall.

QUESTION 7

1. Gasoline one day after a 20% price increase.

QUESTION 8

1. Gasoline purchases one year after a 20% price increase.

QUESTION 9

1. Price rises from $5 to $6, causing the quantity demanded to fall from 15 to 10. Choose the correct elasticity coefficient, the change in total revenue, and whether demand is elastic or inelastic.
2. 2.2
3. .45
4. Total revenue decreases by $15
5. Total revenue increases by $15
6. Elastic.
7. Inelastic.

QUESTION 10

1. Price falls from $10 to $9, causing the quantity demanded to increase from 100 to 110. Choose the correct elasticity coefficient, the change in total revenue, and whether demand is elastic or inelastic.
2. 1.1.
3. .9
4. Total revenue decreases by $10
5. Total revenue increases by $10
6. Elastic.
7. Inelastic.

QUESTION 11

1. Price rises from $6 to $9, causing the quantity demanded to fall from 60 to 50. Choose the correct elasticity coefficient, the change in total revenue, and whether demand is elastic or inelastic.
2. 2.2
3. .45
4. Total revenue decreases by $90
5. Total revenue increases by $90
6. Elastic
7. Inelastic.

QUESTION 12

1. Price falls from $6.50 to $6, causing the quantity demanded to increase from 100 to 200. Choose the correct elasticity coefficient, the change in total revenue, and whether demand is elastic or inelastic.
2. 8.38
3. .11
4. Total revenue decreases by $550
5. Total revenue increases by $550
6. Elastic
7. Inelastic

QUESTION 13

1. Price falls from $4 to $3.75, causing the quantity demanded to rise from 300 to 400. Choose the correct elasticity coefficient, the change in total revenue, and whether demand is elastic or inelastic.
2. 4.8
3. .2
4. Total revenue decreases by 300
5. Total revenue increases by 300
6. Elastic
7. Inelastic.

QUESTION 14

1. Price rises from $10 to $15, causing the quantity supplied to rise from 300 to 400. Choose the correct elasticity coefficient and whether supply is elastic or inelastic.
2. 1.40
3. .71
4. Elastic
5. Inelastic.

QUESTION 15

1. Price rises from $10 to $30, causing the quantity supplied to rise from 100 to 400. Choose the correct elasticity coefficient and whether supply is elastic or inelastic.
2. 1.2
3. .83
4. Elastic
5. Inelastic.

QUESTION 16

1. The quantity demand of good A decreases from 8 to 4 when income increases from $30,000 to $40,000.
2. Normal
3. Inferior
4. Substitute
5. Complementary

QUESTION 17

1. The quantity demanded of good B increases from 25 to 30 when income increases from $40,000 to $60,000.
2. Normal
3. Inferior
4. Substitute
5. Complementary

QUESTION 18

1. The quantity demanded of good A decreases from 20 to 15 when the price of good B increases from $2 to $3
2. Normal
3. Inferior
4. Substitute
5. Complementary

QUESTION 19

1. The quantity demanded of good A decreases from 50 to 40 when the price of good B decreases from $5 to $4.
2. Normal
3. Inferior
4. Substitute
5. Complementary

QUESTION 20

1. The quantity demanded of good A increases from 15 to 20 when the price of good B increases from $10 to $15.
2. Normal
3. Inferior
4. Substitute
5. Complementary

QUESTION 21

1. The quantity demanded of good A increases from 20 to 25 when income increases from $25,000 to $30,000.
2. Normal
3. Inferior
4. Substitute
5. Complementary

QUESTION 22

1. The quantity demanded of good A increases from 10 to 12 when the price of good B increases from $1 to $1.50.
2. Normal
3. Inferior
4. Substitute
5. Complementary