64. Multiple Choice: Suppose at a price of $10 the quantit...
Question Suppose at a price of $10 the quantity demanded is 100. When the price falls to
$8, the quantity demanded increases to 130. The price elasticity of demand (using
the midpoint formula) between the prices of $10 and $8 is approximately:
1.00.
65. Multiple Choice: Table: Price Elasticity Reference: Re…
Question Table: Price Elasticity
Reference: Ref 6–5
(Table: Price Elasticity) Look at the table Price Elasticity. What is the price
elasticity of demand (using the midpoint formula) between $2.50 and $2.25?
Answer 9
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66. Multiple Choice: Table: Price Elasticity Reference: Re...
Question Table: Price Elasticity
Reference: Ref 6–5
(Table: Price Elasticity) Look again at the table Price Elasticity. What is the price
elasticity of demand between $2.25 and $2.00?
Answer 4.00
67. Multiple Choice: Table: Price Elasticity Reference: Re...
Question
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Table: Price Elasticity
Reference: Ref 6–5
(Table: Price Elasticity) Look again at the table Price Elasticity. What is the price
elasticity of demand between $2.00 and $1.75?
Answer 2.33
68. Multiple Choice: Table: Price Elasticity Reference: Re...
Question Table: Price Elasticity
Reference: Ref 6–5
(Table: Price Elasticity) Look again at the table Price Elasticity. What is the price
elasticity of demand between $1.75 and $1.50?
Answer 0.42
Points: 0
69. Multiple Choice: Table: Price Elasticity Reference: Re...
Question Table: Price Elasticity
Reference: Ref 6–5
(Table: Price Elasticity) Look again at the table Price Elasticity. What is the price
elasticity of demand between $1.50 and $1.25?
Answer 1.00
70. Multiple Choice: Table: Price Elasticity Reference: Re...
Question
Points: 0
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Table: Price Elasticity
Reference: Ref 6–5
(Table: Price Elasticity) Look again at the table Price Elasticity. What is the price
elasticity of demand between $1.25 and $1.00?
Answer 0.60
71. Multiple Choice: Table: Price Elasticity Reference: Re...
Question Table: Price Elasticity
Reference: Ref 6–5
(Table: Price Elasticity) Look again at the table Price Elasticity. What is the price
elasticity of demand between $1.00 and $0.75?
Points: 0
72. Multiple Choice: Table: Price Elasticity Reference: Re...
Question Table: Price Elasticity
Reference: Ref 6–5
(Table: Price Elasticity) Look again at the table Price Elasticity. What is the price
elasticity of demand between $0.75 and $0.50?
Answer 0.25
73. Multiple Choice: Figure: The Demand Curve for Crossing…
Question
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Figure: The Demand Curve for Crossings
Reference: Ref 6–6
(Figure: The Demand Curve for Crossings) Look at the figure The Demand Curve for
Crossings. This graph examines the demand for crossing a bridge over a very large
river. Using the midpoint method, the price elasticity of demand between $0.90 and
$1.10 is approximately:
Answer 0.1.
74. Multiple Choice: Figure: The Demand Curve Reference: R…
Question
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Figure: The Demand Curve
Reference: Ref 6–7
(Figure: The Demand Curve) Look at the figure The Demand Curve. Using the
midpoint method, the price elasticity of demand between $8 and $9 is
approximately:
Answer 0.18.
75. Multiple Choice: Figure: The Demand Curve Reference: R…
Question
Points: 0
Figure: The Demand Curve
Reference: Ref 6–7
(Figure: The Demand Curve) Look again at the figure The Demand Curve. Using the
midpoint method, the price elasticity of demand between $1 and $2 is
approximately:
5.67.
76. Multiple Choice: Figure: The Demand Curve Reference: R…
Question
Points: 0
Figure: The Demand Curve
Reference: Ref 6–7
(Figure: The Demand Curve) Look again at the figure The Demand Curve. Using the
midpoint method the price elasticity of demand between $3 and $4 is
approximately:
Answer 0.19.
77. Multiple Choice: Figure: The Demand Curve Reference: R…
Question
Points: 0
Figure: The Demand Curve
Reference: Ref 6–7
(Figure: The Demand Curve) Look again at the figure The Demand Curve. Using the
midpoint method, the price elasticity of demand between $6 and $8 is
approximately:
Answer 0.23.
78. Multiple Choice: Figure: The Demand Curve Reference: R…
Question
Points: 0
Figure: The Demand Curve
Reference: Ref 6–7
(Figure: The Demand Curve) Look again at the figure The Demand Curve. Using the
midpoint method, the price elasticity of demand between $6 and $7 is
approximately:
Answer 0.19.
79. Multiple Choice: Each month Jacquelyn spends exactly $...
Question Each month Jacquelyn spends exactly $50 on ice cream regardless of the price of
each container. Jacquelyn’s price elasticity of demand for ice cream is:
Answer 0.
80. Multiple Choice: Each month Jessica buys exactly 15 Bi…
Question Each month Jessica buys exactly 15 Big Macs regardless of the price. Jessica’s
price elasticity of demand for Big Macs is:
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81. Multiple Choice: Suppose the price elasticity of deman…
Question Suppose the price elasticity of demand for cheeseburgers equals 0.37. This means
the overall demand for cheeseburgers is:
Answer price elastic.
82. Multiple Choice: The price elasticity of demand for sk...
Question The price elasticity of demand for skiing lessons in New Hampshire is over 1.00.
This means that the demand is ________ in New Hampshire.
perfectly price elastic
83. Multiple Choice: You manage a popular nightclub and la...
Question You manage a popular nightclub and lately revenues have been disappointing. Your
bouncer suggests that raising drink prices will increase revenues, but your
bartender suggests that decreasing drink prices will increase revenues. You aren‘t
sure who is right, but you do know that:
Answer your bouncer thinks the demand for drinks is elastic, while your bartender
thinks the demand for drinks is inelastic.
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84. Multiple Choice: A perfectly price-inelastic demand cu...
Question A perfectly price-inelastic demand curve is:
Answer horizontal.
85. Multiple Choice: A major state university in the South...
Question A major state university in the South recently raised tuition by 12%. An economics
professor at this university asked his students, “How many of you will transfer to
another university because of the increase in tuition?” One student out of about 300
said that he or she would transfer. Based on this information, the price elasticity of
demand for education at this university is:
Answer 1.
86. Multiple Choice: A rancher in Oklahoma decides to rais...
Question A rancher in Oklahoma decides to raise the price of her beef by 19% over the
prevailing market price. If the demand for beef is perfectly elastic, this rancher‘s
quantity demanded will:
increase slightly.
87. Multiple Choice: Sonik, a local wireless phone company...
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Question Sonik, a local wireless phone company, tested the effect of a price reduction for
text messaging. It lowered prices from $0.08 to $0.04 per message and found that
the number of messages sent tripled. This means:
Answer the demand for text messaging is inelastic in this price range.
88. Multiple Choice: Sometimes airlines raise ticket price…
Question Sometimes airlines raise ticket prices as the flight departure date approaches in
the hope of increasing revenue. The airlines raise their prices on the assumption
that:
Answer consumer demand becomes more price-elastic as departure time approaches.
89. Multiple Choice: The university president believes tha…
Question The university president believes that increasing student tuition by 5% will increase
revenues. If the president is correct that revenues will increase, then the tuition
increase will:
increase the number of students enrolling by 5%.
90. Multiple Choice: The university hopes to raise more re…
Question The university hopes to raise more revenue by increasing parking fees. This plan
will work only if:
Points: 0
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there is no price or quantity effect.
91. Multiple Choice: Suppose the price elasticity of deman…
Question Suppose the price elasticity of demand for fishing lures equals 1.5 in South
Carolina and 0.63 in Alabama. To increase revenue, fishing lure manufacturers
should:
Answer lower prices in each state.
92. Multiple Choice: Total revenue is
Question Total revenue is
Answer total sales less total cost.
93. Multiple Choice: When the price of chocolate-covered p…
Question When the price of chocolate-covered peanuts decreases from $1.10 to $0.95, the
quantity demanded increases from 190 bags to 215 bags. If the price is $1.10, total
revenue is ______, and if the price is $0.95, total revenue is ______.
$180.50; $209
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94. Multiple Choice: When the price of chocolate-covered p…
Question When the price of chocolate-covered peanuts decreases from $1.10 to $0.95, the
quantity demanded increases from 190 bags to 215 bags. In this price range, the
demand for chocolate covered peanuts is _________ and total revenue will _______
when price decreases.
Answer elastic; increase
95. Multiple Choice: When the price of chocolate-covered p…
Question When the price of chocolate-covered peanuts increases from $1.55 to $2.00, the
quantity demanded decreases from 220 to 180. If the price is $1.55, total revenue
is ______, and if the price is $2.00, total revenue is ______.
Answer $360; $440
96. Multiple Choice: When the price of chocolate-covered p…
Question When the price of chocolate-covered peanuts increases from $1.55 to $2.00, the
quantity demanded decreases from 220 to 160. In this price range, the demand for
chocolate covered peanuts is _________ and total revenue will __________ when
the price increases.
Answer elastic; increase
97. Multiple Choice: Figure: The Demand Curve Reference: R…
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Question Figure: The Demand Curve
Reference: Ref 6–8
(Figure: The Demand Curve) If the price is $5, total revenue is ________.
Answer $5
98. Multiple Choice: Figure: The Demand Curve Reference: R…
Question
Points: 0
Figure: The Demand Curve
Reference: Ref 6–8
(Figure: The Demand Curve) If the price is $8, total revenue is ________ . If the
price is $7, total revenue is ________.
Answer $24; $16
99. Multiple Choice: Figure: The Demand Curve Reference: R…
Question
Points: 0
Figure: The Demand Curve
Reference: Ref 6–8
(Figure: The Demand Curve) If the price is $3, total revenue is ________ . If the
price is $4, total revenue is ________.
$7; $13
100. Multiple Choice: Figure: The Demand Curve Reference: R…
Question
Points: 0