Shortages is when the price ceiling is below market price,*

2/2

True
 
False
Other:

 
Misallocation of resources is when prices are controlled.*
2/2

True
 
False
Other:

 
Price floors create  shortages.*
3/3

True
False
 
Other:

 
Price ceilings create seven important effects.*
3/3

True
False
 
Other:
 
Perfect competition is a market structure where an infinitely large number of buyers and
sellers operate freely and sell a homogeneous commodity at a uniform price.*
2/2

True
 
False
Other:

 
One of the major characteristic of perfect competition is  Homogeneous Product*
2/2

True
 
False
Other:

 
If the elasticity of demand is lower than 1, that is called Elastic.*
3/3

True
False
 
Other:

 
If the elasticity of demand is equals to 1, that is called inelastic.*
3/3

True
False
 
Other:
 
Inelastic demand whereas demand changes more than price with elastic demand, price
changes more than demand with inelastic demand.*
2/2

True
 
False
Other:

 
The formula for the price elasticity of demand is PED = percentage change in Quantity
Supply over percentage change in price*
3/3

True
False
 
Other:

Identification
45 of 45 points
Identify the type of elasticity of demand.

 
1*
3/3

Elastic
Inelastic
Unitary
 
 
5.50*
2/2
Elastic
 
Inelastic
Unitary

 
0.97*
2/2

Elastic
Inelastic
 
Unitary

 
0.72*
2/2

Elastic
Inelastic
 
Unitary

 
8.79*
2/2

Elastic
 
Inelastic
Unitary

 
29.67*
2/2

Elastic
 
Inelastic
Unitary

 
6.21*
2/2

Elastic
 
Inelastic
Unitary

 
0.58*
2/2

Elastic
Inelastic
 
Unitary

 
7.21*
2/2

Elastic
 
Inelastic
Unitary

 
0.41*
2/2

Elastic
Inelastic
 
Unitary

 
7.15*
2/2

Elastic
 
Inelastic
Unitary

 
0.38*
2/2

Elastic
Inelastic
 
Unitary

 
0.61*
2/2

Elastic
Inelastic
 
Unitary

 
8.98*
2/2

Elastic
 
Inelastic
Unitary

 
4.38*
2/2

Elastic
 
Inelastic
Unitary

 
2*
3/3

Elastic
 
Inelastic
Unitary

 
11*
3/3

Elastic
 
Inelastic
Unitary

 
0.12*
2/2

Elastic
Inelastic
 
Unitary

 
3.33*
3/3

Elastic
 
Inelastic
Unitary

 
1.11*
3/3

Elastic
 
Inelastic
Unitary

Multiple Choice
30 of 30 points
Choose the correct answer.
 
7/2*
3/3

0.36-Inelastic
4.5-Elasctic
1-Unitary
3.5-Elastic
 
Other:

 
8/19*
3/3

0.42-Inelastic
 
3.21-Elastic
1-Unitary
0.41-Inelastic
Other:

 
25/25*
3/3

1-Inelastic
1-Elastic
1-Unitary
 
1.25-Inelastic
Other:

 
9/6*
3/3
1.5-Inelastic
1.5-Elastic
 
1.5-Unitary
2.25-Inelastic
Other:

 
7/10*
3/3

0.70-Elastic
0.7-Elastic
0.7-Unitary
0.7-Inelastic
 
Other:

 
12/5*
3/3

2.4-Inelastic
2.5-Elastic
2.4-Elastic
 
0.24-Inelastic
Other:

 
6/8*
3/3

0.75-Inelastic
 
0.75-Elastic
7.5-Elastic
7-Unitary
Other:

 
5/7*
3/3

0.71-Elastic
0.71-Unitary
0.71-Inelastic
 
7.1-Elastic
Other:

 
9/3*
3/3

0.3-Elastic
3-Unitary
3-Inelastic
3-Elastic
 
Other:

 
4/7*
3/3

5.7-Elastic
0.57-Unitary
0.57-Inelastic
 
5.57-Elastic
Other: