Foundations of economics 6th by parkin ch05 clicker questions

a large percentage change in price brings about a small percentage change in quantity demanded.. a small percentage change in price brings about a small percentage change in quantity dem

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Elasticities of

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Question 1

Question 2

Question 3

Question 4 Question 5

Question 7 Question 8 Question 6 Question 9

Question 10

Checkpoint 5.1 Checkpoint 5.2 Checkpoint 5.3

CHECKPOINT 5.1

A consumers respond strongly to changes in the price of

the good

B a large percentage change in price brings about a small

percentage change in quantity demanded

C a small percentage change in price brings about a small

percentage change in quantity demanded

D the quantity demanded is not responsive to price

changes

E a change in the quantity demanded brings a small change

in the price of the good

Question 1

The demand for a good is elastic if

CHECKPOINT 5.1

A 1.0

B 1.25

C 40.0

D 20.0

E 0.80

Question 2

The price of a bag of pretzels rises from $2 to $3, and the quantity demanded decreases from 100 bags to 60 bags The price elasticity of demand for pretzels is

CHECKPOINT 5.1

A decreases if demand for its product is unit elastic

B increases if demand for its product is unit elastic

C decreases if demand for its product is inelastic

D increases if demand for its product is elastic

E decreases if demand for its product is elastic

Question 3

When a firm raises the price of its product, the firm’s total revenue _

CHECKPOINT 5.2

A exceeds 1, and the supply of the good is elastic

B is negative, and the supply of the good is inelastic

C is less than 1, and the supply of the good is elastic

D is less than 1, and the supply of the good is inelastic

E exceeds 1 and the supply of the good is inelastic

Question 4

If, when the price of a good rises by 10 percent, the quantity supplied of the good increases by 5 percent, then the

elasticity of supply

CHECKPOINT 5.2

A less elastic the supply

B more elastic the supply

C more negative the supply

D steeper the supply curve

E more inelastic the supply

Question 5

The greater the amount of time that passes after the price of

a good changed, the _ of that good becomes

CHECKPOINT 5.2

A elastic

B unit elastic

C negative

D inelastic

E perfectly elastic

Question 6

The supply of beachfront property on St Simon’s Island is

CHECKPOINT 5.3

A price elasticity of supply

B cross elasticity of demand

C price elasticity of demand

D income elasticity of demand

E substitute elasticity of demand

Question 7

To determine whether two goods are complements or substitutes, economists use the _

CHECKPOINT 5.3

A a good with an inelastic demand

B a normal good

C an inferior good

D a perfectly inelastic good

E substitute goods

Question 8

The income elasticity of demand for used cars is less than zero So, used cars are _

CHECKPOINT 5.3

A 2.00

B 3.00

C 3.00

D 0.33

E 0.33

Question 9

When income increases by 6 percent, the demand for

potatoes decreases by 2 percent

The income elasticity of demand for potatoes equals _

CHECKPOINT 5.3

A increases; complements

B decreases; complements

C remains unchanged; complements

D might increase or decrease; substitutes

E decreases; substitutes

Question 10

If two goods have a cross elasticity of demand of 2, then when the price of one good increases, the demand for the other good _, and the two goods are