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1. Price elasticity of demand is a measure of the relative responsiveness of the change in quantity demanded to a change in
price.
a. True
b. False
ANSWER: True
POINTS: 1
REFERENCES: p. 157
TOPICS: 6.1 Price Elasticity of Demand | Price Elasticity of Demand
2. Price elasticity of demand is a measure of the relative responsiveness of the change in price to a change in quantity
demanded.
a. True
b. False
ANSWER: False
POINTS: 1
REFERENCES: p. 157
TOPICS: 6.1 Price Elasticity of Demand | Price Elasticity of Demand
3. If a huge percentage change in price leads to a small percentage change in quantity demanded, then demand is said to
be inelastic.
a. True
b. False
ANSWER: True
POINTS: 1
REFERENCES: p. 157
TOPICS: 6.1 Price Elasticity of Demand | Is the Demand Curve Elastic or Inelastic?
4. If Pizza Hut decreases its price for a large pizza by 25% and this leads to a 75% increase in sales, we can conclude that
demand is relatively elastic with regard to price over that range.
a. True
b. False
Cengage Learning Testing, Powered by Cognero Page 1
ANSWER: True
POINTS: 1
REFERENCES: p. 158
TOPICS: 6.1 Price Elasticity of Demand | Types of Demand Curves
5. If the demand curve for X has twice the elasticity of the demand curve for Y, then for the same percentage decrease in
price, the percentage increase in the quantity of X demanded would be twice that for Y.
a. True
b. False
ANSWER: True
POINTS: 1
REFERENCES: p. 157
TOPICS: 6.1 Price Elasticity of Demand | Is the Demand Curve Elastic or Inelastic?
6. If a huge percentage change in price leads to a small percentage change in quantity demanded, then demand is said to
be elastic.
a. True
b. False
ANSWER: False
POINTS: 1
REFERENCES: p. 166
TOPICS: 6.1 Price Elasticity of Demand | Types of Demand Curves
7. The widespread availability of e-mail has likely increased the price elasticity of demand for the services of the U.S.
Postal Service.
a. True
b. False
ANSWER: True
POINTS: 1
REFERENCES: p. 160
TOPICS: 6.1 Price Elasticity of Demand | The Determinants of the Price Elasticity of Demand
8. Moving along an elastic portion of a demand curve, a small percentage change in price leads to a larger percentage
change in quantity demanded.
a. True
b. False
ANSWER: True
POINTS: 1
REFERENCES: p. 158
TOPICS: 6.1 Price Elasticity of Demand | Types of Demand Curves
9. Moving along the inelastic portion of a demand curve, a large percentage change in price leads to a smaller percentage
change in quantity demanded.
a. True
b. False
ANSWER: True
POINTS: 1
Cengage Learning Testing, Powered by Cognero Page 2
REFERENCES: p. 158
TOPICS: 6.1 Price Elasticity of Demand | Types of Demand Curves
10. Demand for a good is said to be inelastic if the quantity demanded increases substantially when the price falls by a
small amount.
a. True
b. False
ANSWER: False
POINTS: 1
REFERENCES: p. 158
TOPICS: 6.1 Price Elasticity of Demand | Types of Demand Curves
11. Demand for a good is said to be inelastic if the quantity demanded increases slightly when the price falls by a large
amount.
a. True
b. False
ANSWER: True
POINTS: 1
REFERENCES: p. 158
TOPICS: 6.1 Price Elasticity of Demand | Types of Demand Curves
12. The quantity of gasoline demanded will respond more to a change in price over three weeks than over three years.
a. True
b. False
ANSWER: False
POINTS: 1
REFERENCES: p. 162
TOPICS: 6.1 Price Elasticity of Demand | Types of Demand Curves
14. Demand is relatively elastic when the price elasticity coefficient exceeds 1.0.
a. True
b. False
ANSWER: True
POINTS: 1
REFERENCES: p. 158
TOPICS: 6.1 Price Elasticity of Demand | Types of Demand Curves
15. If the price elasticity coefficient equals 4.2, then demand is relatively inelastic with regard to price.
a. True
Cengage Learning Testing, Powered by Cognero Page 3
b. False
ANSWER: False
POINTS: 1
REFERENCES: p. 158
TOPICS: 6.1 Price Elasticity of Demand | Types of Demand Curves
16. Using the midpoint method for calculating the price elasticity of demand, you get the same elasticity of demand
between two points, whether you are moving up the demand curve or down it.
a. True
b. False
ANSWER: True
POINTS: 1
REFERENCES: p. 158
TOPICS: 6.1 Price Elasticity of Demand | Calculating the Price Elasticity of Demand: The Midpoint Method
17. The flatter the demand curve passing through a given point, the less elastic the demand curve at that point.
a. True
b. False
ANSWER: False
POINTS: 1
REFERENCES: p. 159
TOPICS: 6.1 Price Elasticity of Demand | Types of Demand Curves
19. Demand tends to be more elastic, the greater the number of good substitutes, the greater the fraction of one’s income
devoted to a product and the greater the time allowed to respond to a price change.
a. True
b. False
ANSWER: True
POINTS: 1
REFERENCES: p. 159
TOPICS: 6.1 Price Elasticity of Demand | The Determinants of the Price Elasticity of Demand
20. If good A had twice as many good substitutes as good B, but good B consumed twice the amount of a buyers income
as good A, goods A and B would have the same elasticity of demand.
a. True
b. False
ANSWER: False
POINTS: 1
REFERENCES: p. 159
Cengage Learning Testing, Powered by Cognero Page 4
TOPICS: 6.1 Price Elasticity of Demand | The Determinants of the Price Elasticity of Demand
21. A decrease in price will cause a firm's total revenue to decrease if demand is price inelastic.
a. True
b. False
ANSWER: True
POINTS: 1
REFERENCES: p. 166
TOPICS: 6.2 Total Revenue and the Price Elasticity of Demand | How Does the Price Elasticity of Demand Impact
Total Revenue?
22. An increase in price will cause a firm's total revenue to increase if demand is price elastic.
a. True
b. False
ANSWER: False
POINTS: 1
REFERENCES: p. 165
TOPICS: 6.2 Total Revenue and the Price Elasticity of Demand | How Does the Price Elasticity of Demand Impact
Total Revenue?
23. If a consumer's total expenditure on a good does not vary with price, then that consumer's demand curve is unit elastic
over that range of prices.
a. True
b. False
ANSWER: True
POINTS: 1
REFERENCES: p. 159
TOPICS: 6.2 Price Elasticity of Demand | How Does the Price Elasticity of Demand Impact Total Revenue?
24. The longer the time buyers have to respond to a decrease in price, the more likely it is that the total revenue for the
good in question would increase as a result.
a. True
b. False
ANSWER: True
POINTS: 1
REFERENCES: p. 159
TOPICS: 6.2 Price Elasticity of Demand | How Does the Price Elasticity of Demand Impact Total Revenue?
25. The more good substitutes there are for a product, the more likely it is that the total revenue for the good in question
would increase as a result of an increase in price.
a. True
b. False
ANSWER: False
POINTS: 1
REFERENCES: p. 159
TOPICS: 6.2 Price Elasticity of Demand | How Does the Price Elasticity of Demand Impact Total Revenue?
Language: English
NOBEL LECTURE
FUNDAMENTAL IDEAS AND PROBLEMS
OF THE THEORY OF RELATIVITY
[1]The Lecture was not delivered on the occasion of the Nobel Prize award,
and did not, therefore, concern the discovery of the photoelectric effect.
[2]As regards the red shift, the agreement with experience is not yet
completely assured, however.
TRANSCRIBER'S NOTES
The cover image was created by the Transcriber and placed in the public domain.
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FUNDAMENTAL IDEAS AND PROBLEMS OF THE THEORY OF
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