Question 1

When consumers are very sensitive to changes in price, their demand is

Group of answer choices

inelastic

normal

elastic

inferior

Question 2

If the price elasticity of demand is 0.98 the demand is

Group of answer choices

inelastic

elastic

unit elastic

perfectly inelastic

Question 3

The price of a cheeseburger rises from $2.65 to $2.85 and the quantity demanded changes from 490 to 485. What is the price elasticity of demand?

Group of answer choices

0.14

0.07

-0.01

7

Question 4

Which of the following items would likely have an inelastic supply?

Group of answer choices

microwave ovens

laptops

custom painted pottery

t-shirts

Question 5

A 20% change in price leads to a 16% change in quantity supplied. What is the price elasticity of supply?

Group of answer choices

E = 0.8 supply is elastic

E = 1.25 supply is inelastic

E = 1.25 supply is elastic

E = 0.8 supply is inelastic

Flag question: Question 6

The income elasticity of a good is - 1.72. The good is _____________ and demand is ______________ .

Group of answer choices

normal and demand is inelastic

inferior and demand is elastic

normal and demand is elastic

inferior and demand is inelastic

Question 7

When price elasticity of demand of a particular good is inelastic, this means that demand is

Group of answer choices

very responsive to changes in price

very responsive to changes in income

not responsive to changes in income

not responsive to changes in price

Question 8

When income falls and quantity demanded also falls, the good is

Group of answer choices

normal

elastic

inelastic

inferior

Question 9

Income falls from $80,000 to $76,000 and quantity demanded changes from 320 to 460. Calculate the elasticity and what type of good is this?

Group of answer choices

E = 0.14, normal good

E = 7, normal good

E = -7, inferior good

E = -0.14, inferior good

Question 10

Which of the following will likely have an inelastic demand?

Group of answer choices

potato chips

soda

water

tacos