ECONOMICS CHAPTER 6 - Custom Scholars
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# ECONOMICS CHAPTER 6

question
The price ______________________ of demand measures the responsiveness, or sensitivity, of consumers to a price change.
Elasticity
question
Why will the coefficient for the price elasticity of demand always be a negative number?
Because price and quantity demanded are not related
Because the demand curve is upward sloping
Because price and quantity demanded are inversely related
Because price and quantity demanded are positively related
Because price and quantity demanded are inversely related.
question
What type of demand is represented by a given change in price that leads to a larger change in the quantity demanded?
Multiple choice question.
Cross inelastic
Unit elastic
Inelastic
Elastic
Elastic
question
If a 4% decrease in the price of coffee leads to a 2% increase in the quantity demanded, the price elasticity of demand for coffee is relatively price
Inelastic
question
When demand is relatively price ____________________ , the coefficient for the price elasticity of demand will be less than one.
Inelastic
question
How is a buyer's responsiveness to price changes measured?

By the behavior of firms' production
By the price elasticity of demand coefficient
By the level to which demand shifts as incomes changes
By the price elasticity of supply coefficient
By the price elasticity of demand coefficient
question
A small percentage change in quantity demanded divided by a larger percentage change in price indicates _________________ demand.
Inelastic
question
Economists typically express the elasticity coefficient as an absolute value in order to ______.

emphasize demand
avoid ambiguity
use whole numbers
simplify calculations
avoid ambiguity
question
When demand is unit elastic, the percentage change in quantity demanded is ______ the percentage change in price.

less than
equal to
greater than
not correlated with
equal to
question
A coefficient of price elasticity of demand that is greater than 1 indicates that demand is____________
elastic
question
An addict's demand for heroin is an example of a demand that is perfectly
Inelastic
question
A 5% decline in the price of cut flowers results in a 3% increase in the quantity demanded. Therefore, the demand for cut flowers is ______.
Inelastic
question
When the price elasticity of demand is perfectly______________ , a change in price causes no change in the quantity demanded.
Inelastic
question
If the percentage change in quantity demanded is less than the percentage change in price, then the price elasticity of demand is ______.

cross inelastic
unit elastic
inelastic
elastic
inelastic
question
What type of price elasticity of demand results from a relatively small percentage change in quantity demanded divided by a relatively larger percentage change in price?

Cross elastic
Elastic
Inelastic
Unit elastic
Inelastic
question
A product that exhibits perfectly elastic demand has a price elasticity coefficient equal to ______.

one
zero
two
infinity
infinity
question
Which of the following is true when the demand is unit elastic?

The percentage change in quantity demanded is not correlated with the percentage change in price.
The percentage change in quantity demanded is greater than the percentage change in price.
The percentage change in quantity demanded is less than the percentage change in price.
The percentage change in quantity demanded is equal to the percentage change in price.
The percentage change in quantity demanded is equal to the percentage change in price.
question
Total revenue is calculated by (multiplying/dividing) the product price by the quantity sold.
multiplying
question
Which of the following would most exemplify perfectly inelastic demand?

Smokers' need for cigarettes
A diabetic's demand for insulin
A mining firm selling its output in a purely competitive market
Drivers' demand for gasoline
A diabetic's demand for insulin
question
When a change in price does not cause a change in the quantity demanded, the price elasticity of demand is considered ______.

perfectly elastic
perfectly inelastic
unit elastic
cross inelastic
perfectly inelastic
question
If product demand is relatively elastic, what will be the effect on the total revenue if the price is increased?

It cannot be determined.
It stays the same.
It decreases.
It increases.
it decreases
question
When the price elasticity coefficient is equal to infinity, the product exhibits ______ demand.

perfectly elastic
relatively inelastic
perfectly inelastic
unit elastic
perfectly elastic
question
How is total revenue calculated?

Price - Quantity
Price ÷ Quantity
Price + Quantity
Price × Quantity
Price × Quantity
question
When the demand for a product is_______________ and the price is reduced, total revenue will fall.
Inelastic
question
If the price elasticity of demand is unit elastic, the change in price is ______ the change in quantity.

more dominant than
less than
exactly offset by
greater than
exactly offset by
question
When the price elasticity of demand for a product is relatively price elastic and price is ______, total revenue will ______.

increased; decrease
increased; increase
increased; stay constant
decreased; decrease
increased; decrease
question
Which of the following typically varies over the different price ranges of the same demand curve?

Prices of related goods
Nature of the good
Elasticity
Tastes of consumers
Elasticity
question
For all down-sloping demand curves, the price elasticity of demand is more elastic ______.

at the midpoint of the demand curve
toward the upper left
toward the lower left
toward the lower right
toward the upper left
question
If demand is ______, a price decrease will reduce total revenue.

unit elastic
perfectly elastic
elastic
inelastic
Inelastic
question
When price and total revenue move in the same direction along the demand curve, this indicates that demand is ____________
Inelastic
question
If the loss in revenue from a lower price is exactly offset by the gain in revenue from the increase in sales, then the price elasticity of demand is ______.

elastic
unit elastic
perfectly inelastic
inelastic
Unit Elastic
question
If product demand is relatively elastic, what will be the effect on the total revenue if the price is increased?

It cannot be determined.
It decreases.
It increases.
It stays the same.
It decreases.
question
The demand for a heart transplant would be considered price____________
Inelastic
1 of 33
question
The price ______________________ of demand measures the responsiveness, or sensitivity, of consumers to a price change.
Elasticity
question
Why will the coefficient for the price elasticity of demand always be a negative number?
Because price and quantity demanded are not related
Because the demand curve is upward sloping
Because price and quantity demanded are inversely related
Because price and quantity demanded are positively related
Because price and quantity demanded are inversely related.
question
What type of demand is represented by a given change in price that leads to a larger change in the quantity demanded?
Multiple choice question.
Cross inelastic
Unit elastic
Inelastic
Elastic
Elastic
question
If a 4% decrease in the price of coffee leads to a 2% increase in the quantity demanded, the price elasticity of demand for coffee is relatively price
Inelastic
question
When demand is relatively price ____________________ , the coefficient for the price elasticity of demand will be less than one.
Inelastic
question
How is a buyer's responsiveness to price changes measured?

By the behavior of firms' production
By the price elasticity of demand coefficient
By the level to which demand shifts as incomes changes
By the price elasticity of supply coefficient
By the price elasticity of demand coefficient
question
A small percentage change in quantity demanded divided by a larger percentage change in price indicates _________________ demand.
Inelastic
question
Economists typically express the elasticity coefficient as an absolute value in order to ______.

emphasize demand
avoid ambiguity
use whole numbers
simplify calculations
avoid ambiguity
question
When demand is unit elastic, the percentage change in quantity demanded is ______ the percentage change in price.

less than
equal to
greater than
not correlated with
equal to
question
A coefficient of price elasticity of demand that is greater than 1 indicates that demand is____________
elastic
question
An addict's demand for heroin is an example of a demand that is perfectly
Inelastic
question
A 5% decline in the price of cut flowers results in a 3% increase in the quantity demanded. Therefore, the demand for cut flowers is ______.
Inelastic
question
When the price elasticity of demand is perfectly______________ , a change in price causes no change in the quantity demanded.
Inelastic
question
If the percentage change in quantity demanded is less than the percentage change in price, then the price elasticity of demand is ______.

cross inelastic
unit elastic
inelastic
elastic
inelastic
question
What type of price elasticity of demand results from a relatively small percentage change in quantity demanded divided by a relatively larger percentage change in price?

Cross elastic
Elastic
Inelastic
Unit elastic
Inelastic
question
A product that exhibits perfectly elastic demand has a price elasticity coefficient equal to ______.

one
zero
two
infinity
infinity
question
Which of the following is true when the demand is unit elastic?

The percentage change in quantity demanded is not correlated with the percentage change in price.
The percentage change in quantity demanded is greater than the percentage change in price.
The percentage change in quantity demanded is less than the percentage change in price.
The percentage change in quantity demanded is equal to the percentage change in price.
The percentage change in quantity demanded is equal to the percentage change in price.
question
Total revenue is calculated by (multiplying/dividing) the product price by the quantity sold.
multiplying
question
Which of the following would most exemplify perfectly inelastic demand?

Smokers' need for cigarettes
A diabetic's demand for insulin
A mining firm selling its output in a purely competitive market
Drivers' demand for gasoline
A diabetic's demand for insulin
question
When a change in price does not cause a change in the quantity demanded, the price elasticity of demand is considered ______.

perfectly elastic
perfectly inelastic
unit elastic
cross inelastic
perfectly inelastic
question
If product demand is relatively elastic, what will be the effect on the total revenue if the price is increased?

It cannot be determined.
It stays the same.
It decreases.
It increases.
it decreases
question
When the price elasticity coefficient is equal to infinity, the product exhibits ______ demand.

perfectly elastic
relatively inelastic
perfectly inelastic
unit elastic
perfectly elastic
question
How is total revenue calculated?

Price - Quantity
Price ÷ Quantity
Price + Quantity
Price × Quantity
Price × Quantity
question
When the demand for a product is_______________ and the price is reduced, total revenue will fall.
Inelastic
question
If the price elasticity of demand is unit elastic, the change in price is ______ the change in quantity.

more dominant than
less than
exactly offset by
greater than
exactly offset by
question
When the price elasticity of demand for a product is relatively price elastic and price is ______, total revenue will ______.

increased; decrease
increased; increase
increased; stay constant
decreased; decrease
increased; decrease
question
Which of the following typically varies over the different price ranges of the same demand curve?

Prices of related goods
Nature of the good
Elasticity
Tastes of consumers
Elasticity
question
For all down-sloping demand curves, the price elasticity of demand is more elastic ______.

at the midpoint of the demand curve
toward the upper left
toward the lower left
toward the lower right
toward the upper left
question
If demand is ______, a price decrease will reduce total revenue.

unit elastic
perfectly elastic
elastic
inelastic
Inelastic
question
When price and total revenue move in the same direction along the demand curve, this indicates that demand is ____________
Inelastic
question
If the loss in revenue from a lower price is exactly offset by the gain in revenue from the increase in sales, then the price elasticity of demand is ______.

elastic
unit elastic
perfectly inelastic
inelastic
Unit Elastic
question
If product demand is relatively elastic, what will be the effect on the total revenue if the price is increased?

It cannot be determined.
It decreases.
It increases.
It stays the same.
It decreases.
question
The demand for a heart transplant would be considered price____________
Inelastic

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