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True/False
[QUESTION]
1. Price elasticity of demand is the percentage change in price divided by the percentage change
in quantity demanded.
Ans: False
AACSB: Reflective Thinking
Bloom’s: Remember
Difficulty: 01 Easy
Learning Objective: 06-01
Topic: Price Elasticity
Feedback: Price elasticity of demand is the percentage change in quantity demanded divided by
the percentage change in price.
[QUESTION]
2. If the price of a good goes up by 20 percent and the quantity demanded falls by 40 percent,
the price elasticity of demand is 2.
Ans: True
AACSB: Reflective Thinking
Bloom’s: Understand
Difficulty: 02 Medium
Learning Objective: 06-01
Topic: Price Elasticity
Feedback: Elasticity of demand = % change in quantity/% change in price = 40/20 = 2. We
conventionally give elasticity of demand as a positive number, which is why we used the
absolute values of the numerator and denominator in the above equation (we have taken 40
percent instead of –40 percent).
[QUESTION]
© 2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any
manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
3. If the price of corn goes up by $1 a bushel and the quantity supplied rises by 100 bushels, the
price elasticity of supply has to be 100.
Ans: False
AACSB: Reflective Thinking
Bloom’s: Understand
Difficulty: 02 Medium
Learning Objective: 06-01
Topic: Price Elasticity
Feedback: Elasticity is the percentage change in quantity divided by the percentage change in
price. You cannot calculate elasticity with the information given in the question because it is not
given in percentage changes. We need to know the prices and quantities at which the above
changes occur to calculate percentages.
[QUESTION]
4. Refer to the following graph.
Since the supply curve intersects the horizontal axis, all the points along the supply curve shown
are inelastic.
Ans: True
AACSB: Reflective Thinking
Bloom’s: Understand
Difficulty: 02 Medium
Learning Objective: 06-01
Topic: Price Elasticity
Feedback: All points along a supply curve that intersects the quantity axis have elasticities less
than 1.
[QUESTION]
5. When demand is perfectly inelastic, there is no change in quantity demanded after a change in
price.
Ans: True
AACSB: Reflective Thinking
Bloom’s: Remember
Difficulty: 01 Easy
Learning Objective: 06-01
© 2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any
manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Topic: Price Elasticity
Feedback: Quantity demanded is not responsive to a price change when demand is perfectly
inelastic.
[QUESTION]
6. Most likely, the elasticity of demand for transportation is greater than the elasticity of demand
for cars.
Ans: False
AACSB: Reflective Thinking
Bloom’s: Understand
Difficulty: 02 Medium
Learning Objective: 06-02
Topic: Substitution and Elasticity
Feedback: Transportation in general has fewer substitutes than does transportation by cars and
thus has a lower elasticity.
[QUESTION]
7. Revenue remains unchanged along a straight-line demand curve.
Ans: False
AACSB: Reflective Thinking
Bloom’s: Understand
Difficulty: 02 Medium
Learning Objective: 06-03
Topic: Elasticity, Total Revenue, and Demand
Feedback: Revenue is greatest at the midpoint of a straight-line demand curve (where elasticity
of demand equals 1) and falls on either side.
[QUESTION]
8. Refer to the following graph.
© 2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any
manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Learning Objective: 06-03
Topic: Elasticity, Total Revenue, and Demand
Feedback: At prices higher than B, elasticity is greater than 1. Price elasticity of demand is the
percentage change in quantity demanded divided by the percentage change in price. Therefore, a
rise in price at a point above B will lead to a more than proportional fall in quantity demanded,
and therefore total revenue will fall.
[QUESTION]
9. The cross-price elasticity of demand is the percentage change in price divided by the
percentage change in the price of another good.
Ans: False
AACSB: Reflective Thinking
Bloom’s: Remember
Difficulty: 01 Easy
Learning Objective: 06-04
Topic: Income and Cross-Price Elasticity
Feedback: The cross-price elasticity of demand is the percentage change in quantity divided by
the percentage change in the price of another good.
[QUESTION]
10. If demand is highly inelastic and supply shifts to the right, the equilibrium price will rise
significantly while quantity will increase only slightly.
Ans: False
AACSB: Reflective Thinking
Bloom’s: Understand
Difficulty: 02 Medium
Learning Objective: 06-05
Topic: The Power of Supply/Demand Analysis
Feedback: A highly inelastic demand curve and a supply curve that shifts to the right will result
in a significant decline in price while quantity increases only slightly.
[QUESTION]
11. When the demand curve is highly inelastic, there is a strong incentive for suppliers to find a
way to collectively reduce the quantity sold in the market and raise the price of the product.
Ans: True
AACSB: Reflective Thinking
Bloom’s: Understand
Difficulty: 02 Medium
Learning Objective: 06-05
Topic: The Power of Supply/Demand Analysis
Feedback: A highly inelastic demand curve means that if suppliers can collectively limit
quantity supplied, total revenue going to suppliers will rise.
Multiple Choice
[QUESTION]
© 2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any
manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
12. Price elasticity of demand is the:
A. change in the quantity demanded of a good divided by the change in the price of that good.
B. change in the price of a good divided by the change in the quantity demanded of that good.
C. percentage change in price of that good divided by the percentage change in the quantity
demanded of that good.
D. percentage change in quantity demanded of a good divided by the percentage change in the
price of that good.
Ans: D
AACSB: Reflective Thinking
Bloom’s: Remember
Difficulty: 01 Easy
Learning Objective: 06-01
Topic: Price Elasticity
Feedback: See the definition of price elasticity of demand.
[QUESTION]
13. The price elasticity of supply is the:
A. change in the quantity supplied divided by the change in price.
B. percentage change in the quantity supplied divided by the percentage change in price.
C. change in the price divided by the change in the quantity supplied.
D. percentage change in the price divided by the percentage change in the quantity supplied.
Ans: B
Bloom’s: Remember
Difficulty: 01 Easy
Learning Objective: 06-01
Topic: Price Elasticity
Feedback: See the definition of price elasticity of supply.
[QUESTION]
14. In general, the greater the elasticity, the:
A. smaller the responsiveness of price to changes in quantity.
B. smaller the responsiveness of quantity to changes in price.
C. larger the responsiveness of price to changes in quantity.
D. larger the responsiveness of quantity to changes in price.
Ans: D
AACSB: Reflective Thinking
Bloom’s: Remember
Difficulty: 01 Easy
Learning Objective: 06-01
Topic: Price Elasticity
Feedback: When either demand or supply is highly elastic, the quantity is very responsive to a
change in price.
[QUESTION]
15. Demand is said to be elastic when the:
A. percentage change in quantity demanded is less than the percentage change in price.
© 2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any
manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
B. percentage change in quantity demanded is greater than the percentage change in price.
C. change in quantity demanded is less than the change in price.
D. change in quantity demanded is greater than the change in price.
Ans: B
AACSB: Reflective Thinking
Bloom’s: Remember
Difficulty: 01 Easy
Learning Objective: 06-01
Topic: Price Elasticity
Feedback: Demand is elastic if the price elasticity of demand is greater than 1. This occurs if the
percentage change in quantity demanded exceeds the percentage change in price. We cannot say
whether demand is elastic based on information about the change in quantity demanded relative
to the change in price because elasticity is a percentage measurement.
[QUESTION]
16. Supply is said to be inelastic when the:
A. percentage change in quantity supplied is less than the percentage change in price.
B. percentage change in quantity supplied is greater than the percentage change in price.
C. change in quantity supplied is less than the change in price.
D. change in quantity supplied is greater than the change in price.
Ans: A
AACSB: Reflective Thinking
Bloom’s: Remember
Difficulty: 01 Easy
Learning Objective: 06-01
Topic: Price Elasticity
Feedback: Supply is inelastic if the price elasticity of supply is less than 1. This occurs if the
percentage change in price exceeds the percentage change in quantity supplied. We cannot say
whether supply is inelastic based on information about the change in quantity supplied relative to
the change in price because elasticity is a percentage measurement.
[QUESTION]
17. If quantity demanded falls by 25 percent when price rises by 50 percent, demand is said to
be:
A. elastic.
B. inelastic.
C. proportional.
D. unit elastic.
Ans: B
AACSB: Reflective Thinking
Bloom’s: Understand
Difficulty: 02 Medium
Learning Objective: 06-01
Topic: Price Elasticity
Feedback: Here, the percentage change in quantity demanded is less than the percentage change
© 2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any
manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
in price, so demand is inelastic (Ed < 1).
[QUESTION]
18. If the amount of land supplied remains the same even when the price of land increases, the:
A. supply of land must be perfectly elastic.
B. supply of land must be perfectly inelastic.
C. demand for land must be perfectly elastic.
D. demand for land must be perfectly inelastic.
Ans: B
AACSB: Reflective Thinking
Bloom’s: Understand
Difficulty: 02 Medium
Learning Objective: 06-01
Topic: Price Elasticity
Feedback: The supply is perfectly inelastic when quantity supplied remains unchanged after a
change in price.
[QUESTION]
19. The short-run elasticity of demand for gasoline sold at gasoline stations is 0.20. If terrorism
causes the supply of gasoline to fall, resulting in a 5 percent drop in quantity, if other things
remain the same, the price per gallon will increase by:
A. 4 percent.
B. 5 percent.
C. 20 percent.
D. 25 percent.
Ans: D
AACSB: Analytic
Bloom’s: Apply
Difficulty: 03 Hard
Learning Objective: 06-01
Topic: Price Elasticity
Feedback: Price elasticity of demand = % change in quantity/% change in price, implying that
0.2 = 5%/x. Solving for the percentage change in price, or x, yields the prediction of a 25
percent change in price.
[QUESTION]
20. If average movie ticket prices rise by about 5 percent and attendance falls by about 2
percent, other things being equal, the elasticity of demand for movie tickets is about:
A. 0.0.
B. 0.4.
C. 0.6.
D. 2.5.
Ans: B
AACSB: Analytic
Bloom’s: Apply
Difficulty: 03 Hard
© 2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any
manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Learning Objective: 06-01
Topic: Price Elasticity
Feedback: Price elasticity of demand = % change in quantity/% change in price = 2/5 = 0.4. We
conventionally give elasticity of demand as a positive number, which is why we used the
absolute values of the numerator and denominator in the above equation (we have taken 2
percent instead of –2 percent).
[QUESTION]
21. If average movie attendance is 250 million when prices are $7 a ticket and 200 million when
prices are $9 a ticket, the elasticity of demand for movie tickets is about:
A. 0.0.
B. 0.9.
C. 1.1.
D. 1.8.
Ans: B
AACSB: Analytic
Bloom’s: Apply
Difficulty: 03 Hard
Learning Objective: 06-01
Topic: Price Elasticity
Feedback: Elasticity = [(250 – 200)/225]/[(9– 7)/8] = 0.9. We state elasticity of demand as
positive.
[QUESTION]
22. A newspaper recently lowered its price from 50 cents to 30 cents, causing the number of
newspapers sold to increase from 240,000 to 280,000. Other things equal, the data imply that the
elasticity of demand for this newspaper is about:
A. 3.25.
B. 0.5.
C. 0.3.
D. 0.15.
Ans: C
AACSB: Analytic
Bloom’s: Apply
Difficulty: 03 Hard
Learning Objective: 06-01
Topic: Price Elasticity
Feedback: Elasticity = [(280,000 – 240,000)/260,000]/[(.3 – .5)/.4] = (40,000/260,000)/(–0.2/.4)
= (.1538)/–.5) = –0.3. We state elasticity of demand as positive.
[QUESTION]
23. If the price elasticity of supply is 0.5, a 10 percent increase in price will cause a:
A. 5 percent increase in quantity supplied.
B. 5 percent decrease in quantity supplied.
C. 20 percent increase in quantity supplied.
D. 20 percent decrease in quantity supplied.
© 2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any
manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Ans: A
AACSB: Reflective Thinking
Bloom’s: Understand
Difficulty: 02 Medium
Learning Objective: 06-01
Topic: Price Elasticity
Feedback: According to the law of supply, an increase in price causes an increase in quantity
supplied. The price elasticity of supply is the percentage change in quantity supplied divided by
the percentage change in price (0.5 = 5%/10%).
[QUESTION]
24. A price elasticity of demand for a good or service of 1.8 tells us that:
A. the price changes by $1.80 when quantity changes by 1 unit.
B. quantity demanded falls by 1.8 percent when price rises by 1 percent.
C. the price rises by 1.8 percent when quantity demanded falls by 1 percent.
D. quantity demanded falls by 1.8 units when price changes by $1.
Ans: B
AACSB: Reflective Thinking
Bloom’s: Understand
Difficulty: 02 Medium
Learning Objective: 06-01
Topic: Price Elasticity
Feedback: Price elasticity tells us the percentage change in quantity in response to a percentage
change in price.
[QUESTION]
25. If the price of a good goes up by 5 percent and, in response, the quantity demanded falls by
15 percent, the price elasticity of demand will be:
A. .05.
B. 3.
C. 0.3333.
D. 0.15.
Ans: B
AACSB: Analytic
Bloom’s: Apply
Difficulty: 03 Hard
Learning Objective: 06-01
Topic: Price Elasticity
Feedback: Price elasticity of demand is the percentage change in quantity demanded divided by
the percentage change in price = 15%/5% = 3.
[QUESTION]
26. Charlie Black will purchase 10 percent more cans of Coke if the price of a can of Coke falls
by 5 percent. Charlie's price elasticity of demand for cans of Coke is:
A. 10.
B. 5.
© 2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any
manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
C. 2.
D. ½.
Ans: C
AACSB: Analytic
Bloom’s: Apply
Difficulty: 03 Hard
Learning Objective: 06-01
Topic: Price Elasticity
Feedback: Price elasticity of demand is the percentage change in quantity demanded divided by
the percentage change in price = 10%/5% = 2.
[QUESTION]
27. As the manager of a ski resort, you want to increase the number of lift tickets sold by 8
percent. Your staff economist has determined that the price elasticity of demand for lift tickets is
2. To increase sales by the desired amount, you should decrease the price of a lift ticket by:
A. 2 percent.
B. 4 percent.
C. 8 percent.
D. 16 percent.
Ans: B
AACSB: Analytic
Bloom’s: Apply
Difficulty: 03 Hard
Learning Objective: 06-01
Topic: Price Elasticity
Feedback: Price elasticity of demand = % change in quantity/% change in price = 8/x = 2. Solve
for x.
[QUESTION]
28. Susan's price elasticity of restaurant meals is 2.27. If the price of a restaurant meal falls by 2
percent, the quantity of restaurant meals Susan demands will:
A. increase by 2.27 percent.
B. fall by 2.27 percent.
C. increase by 4.54 percent.
D. increase by 22.7 percent.
Ans: C
AACSB: Analytic
Bloom’s: Apply
Difficulty: 03 Hard
Learning Objective: 06-01
Topic: Price Elasticity
Feedback: Elasticity = x/2 = 2.27. Solve for x.
[QUESTION]
29. Richard Voith estimated the price elasticity of demand for round-trip rail fare to be 0.62. If
fares rose by 30 percent, one would expect the quantity of round-trip tickets purchased to:
© 2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any
manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
A. rise by 18.6 percent
B. fall by 18.6 percent
C. rise by 48.4 percent
D. fall by 48.4 percent
Ans: B
AACSB: Analytic
Bloom’s: Apply
Difficulty: 03 Hard
Learning Objective: 06-01
Topic: Price Elasticity
Feedback: Price elasticity of demand = % change in quantity/% change in price = x/30 = .62.
Solve for x.
[QUESTION]
30. It has been estimated that the price elasticity of demand for attending baseball games is 0.23.
Other things held constant, a 10 percent increase in attendance can be explained by a:
A. 43.48 percent fall in the price of a ticket.
B. 43.48 percent rise in the price of a ticket.
C. 23 percent fall in the price of a ticket.
D. 23 percent rise in the price of a ticket.
Ans: A
AACSB: Analytic
Bloom’s: Apply
Difficulty: 03 Hard
Learning Objective: 06-01
Topic: Price Elasticity
Feedback: Price elasticity of demand = % change in quantity/% change in price = 10/x = 0.23.
Solve for x.
[QUESTION]
31. It has been estimated that the price elasticity for cigarettes is 0.164. Assuming there are
currently no taxes on cigarettes, to reduce cigarette purchases 5 percent, the government would
need to tax cigarettes enough to:
A. raise the price by 0.82 percent.
B. lower the price by 0.82 percent.
C. raise the price by 30.5 percent.
D. lower the price by 30.5 percent.
Ans: C
AACSB: Analytic
Bloom’s: Apply
Difficulty: 03 Hard
Learning Objective: 06-01
Topic: Price Elasticity
Feedback: Price elasticity of demand = % change in quantity/% change in price = 5/x = .164.
Solve for x.
© 2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any
manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
[QUESTION]
32. An elasticity of supply of 2.7 means that:
A. supply is inelastic.
B. quantity supplied changes 2.7 units for each 1 percent change in price.
C. quantity supplied changes 2.7 percent for each 1 percent change in price.
D. price changes by 2.7 percent for each 1 percent change in quantity supplied.
Ans: C
AACSB: Reflective Thinking
Bloom’s: Understand
Difficulty: 02 Medium
Learning Objective: 06-01
Topic: Price Elasticity
Feedback: Elasticity is the percentage change in quantity divided by the percentage change in
price.
[QUESTION]
33. If the quantity of picture frames supplied increases 15 percent when the price goes up 20
percent, the elasticity of supply is:
A. 15.
B. 20.
C. 1.33.
D. 0.75.
Ans: D
AACSB: Analytic
Bloom’s: Apply
Difficulty: 03 Hard
Learning Objective: 06-01
Topic: Price Elasticity
Feedback: Price elasticity of supply = % change in quantity/% change in price = 15/20 = .75.
[QUESTION]
34. A marketing student observes that when the price of ice cream rises by 10 percent, the
quantity of ice cream a supplier is willing to sell rises by 5 percent. The student correctly
concludes that the elasticity of supply for ice cream is:
A. .2.
B. .5.
C. 2.
D. 5.
Ans: B
AACSB: Reflective Thinking
Bloom’s: Understand
Difficulty: 02 Medium
Learning Objective: 06-01
Topic: Price Elasticity
Feedback: Price elasticity of supply = % change in quantity/% change in price = 5%/10% = .5.
© 2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any
manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
[QUESTION]
35. Measuring the price of gasoline in dollars, an economist calculates the price elasticity of
demand to be .5. What would the price elasticity of demand be if the economist had chosen to
measure the price of gasoline in pennies rather than dollars?
A. .5
B. .05
C. .005
D. 50
Ans: A
AACSB: Reflective Thinking
Bloom’s: Understand
Difficulty: 02 Medium
Learning Objective: 06-01
Topic: Price Elasticity
Feedback: Elasticity is independent of units.
[QUESTION]
36. Measuring the price of gasoline in dollars per quart, an economist calculates the price
elasticity of demand to be 1. What would the price elasticity of demand be if the economist had
chosen to measure the price in dollars per gallon?
A. 1
B. 4
C. .25
D. .5
Ans: A
AACSB: Reflective Thinking
Bloom’s: Understand
Difficulty: 02 Medium
Learning Objective: 06-01
Topic: Price Elasticity
Feedback: Elasticity is independent of units.
[QUESTION]
37. If a $100 drop in the price of a $10,000 car resulted in an increase in the quantity of cars
purchased from 100 to 110 and a $100 drop in the price of a $1,000 vacation rental resulted in an
increase in the quantity of weekly vacation homes rented from 100 to 110, the price elasticity of
demand is:
A. greater for the car.
B. less for the car.
C. the same for both the car and the vacation rental.
D. not comparable.
Ans: A
AACSB: Analytic
Bloom’s: Analyze
Difficulty: 03 Hard
Learning Objective: 06-01
© 2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any
manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Topic: Price Elasticity
Feedback: The percentage rise in quantity was the same for both, but the percentage fall in price
was greater for the vacation rental. Therefore, its elasticity of demand is smaller than that of the
car.
[QUESTION]
38. A sporting goods store observes that as they reduce the price of squash balls from $5 to $4,
their quantity demanded rises from 200 to 220. Rounding to the nearest tenth, they correctly
compute the elasticity of demand of squash balls to be:
A. 0.1.
B. 0.4.
C. 2.3.
D. 5.
Ans: B
AACSB: Analytic
Bloom’s: Apply
Difficulty: 03 Hard
Learning Objective: 06-01
Topic: Price Elasticity
Feedback: Elasticity = [(200 – 220)/210]/[(5 – 4)/4.5] = (–20/210)/(1/4.5) = –.095/.222 = –0.4.
We state elasticity of demand as positive.
[QUESTION]
39. As the price of beachfront cottages in Florida was raised from $400,000 to $500,000, their
quantity supplied rose from 2,000 to 2,100. Rounding to the nearest tenth, the elasticity of supply
of beachfront cottages is:
A. 0.4.
B. 0.2.
C. 1.0.
D. 4.6
Ans: B
AACSB: Analytic
Bloom’s: Apply
Difficulty: 03 Hard
Learning Objective: 06-01
Topic: Price Elasticity
Feedback: Elasticity = [(2,100 – 2,000)/2,050]/[(500,000 – 400,000)/450,000] =
(100/2,050)/(100,000/450,000) = 0.2 (rounded).
[QUESTION]
40. As the price of tomatoes fell from $2.5 to $2, the quantity imported from Mexico fell from
1,800 tons to 900 tons. The elasticity of supply of tomatoes imported from Mexico is:
A. 0.25.
B. 0.3
C. 3.0
D. 5.
© 2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any
manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Ans: C
AACSB: Analytic
Bloom’s: Apply
Difficulty: 03 Hard
Learning Objective: 06-01
Topic: Price Elasticity
Feedback: Elasticity = [(1,800 – 900)/1,350]/[(2 – 2.5)/2.25] = (–900/1,350)/(–0.5/2.25) = 3.0.
We state elasticity of demand as positive.
[QUESTION]
41. As the price of samosas (a kind of food in India) was raised from 2 to 3 rupees (Indian
currency), their quantity demanded fell from 15,000 to 12,000. Rounding to the nearest tenth, the
elasticity of demand of samosas is:
A. 4.
B. 0.6.
C. 1.8.
D. impossible to determine because we don't know the exchange rate of the rupee.
Ans: B
AACSB: Analytic
Bloom’s: Apply
Difficulty: 03 Hard
Learning Objective: 06-01
Topic: Price Elasticity
Feedback: Elasticity = [(12,000 – 15,000)/13,500]/[(3 – 2)/2.5] = (–3,000/13,500)/(1/2.5) = –0.6.
We state elasticity of demand as positive. Elasticity is a number that measures the general
responsiveness of quantity to changes in price. It does not matter what the currency is.
[QUESTION]
42. Compute the approximate elasticity of supply from the following data:
A. .2
B. .5
C. 2.1
D. 5.0
Ans: C
AACSB: Analytic
Bloom’s: Apply
Difficulty: 03 Hard
Learning Objective: 06-01
Topic: Price Elasticity
Feedback: Elasticity = [(500 – 400)/450]/[(100 – 90)/95] = (100/450)/(10/95) = .22/.11 = 2.1.
© 2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any
manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
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Language: French
Paris
Nelson, Éditeurs
189, rue Saint-Jacques
Londres, Édimbourg et New-York
HOMMAGE CORDIAL
G. L.
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Ma montre 21
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Rogers 45
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Madame Mac Williams et le tonnerre 59
Notes sur Paris 69
L’article de M. Bloque 73
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Histoire du méchant petit garçon 125
Histoire du bon petit garçon 131
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Comment je devins directeur d’un journal d’agriculture 161
Le meurtre de Jules César en fait divers 169
La célèbre grenouille sauteuse du comté de Calaveras 177
Réponses à des correspondants 187
L’histoire se répète 193
Pour guérir un rhume 195
Feu Benjamin Franklin 201
L’éléphant blanc volé 207
Madame Mac Williams et le croup 237
Histoire de l’invalide 247
Nuit sans sommeil 257
Les faits concernant ma récente démission 265
Économie politique 275
INTRODUCTION
Ma belle montre neuve avait marché dix-huit mois, sans avance ni retard,
sans aucune perturbation dans quelque partie que ce fût de son mécanisme,
sans arrêt. J’avais fini par la regarder comme infaillible dans ses jugements
sur le temps, et par considérer sa constitution et son anatomie comme
impérissables. Mais un jour, une nuit plutôt, je la laissai tomber. Je
m’affligeai de cet accident, où je vis le présage d’un malheur. Toutefois, peu
à peu je me rassurai et chassai mes pressentiments superstitieux. Pour plus
de sûreté, néanmoins, je la portai chez le principal horloger de la ville, afin
de la faire régler. Le chef de l’établissement la prit de mes mains et
l’examina avec attention. Alors il dit: «Elle est de quatre minutes en retard.
Le régulateur doit être poussé en avant.» J’essayai de l’arrêter, de lui faire
comprendre que ma montre marchait à la perfection. Mais non.
Tous les efforts humains ne pouvaient empêcher ma montre d’être en
retard de quatre minutes, et le régulateur dut être poussé en avant. Et ainsi,
tandis que je trépignais autour de lui, dans l’angoisse, et le suppliais de
laisser ma pauvre montre en repos, lui, froidement et tranquillement,
accomplissait l’acte infâme. Ma montre, naturellement, commença à
avancer. Elle avança tous les jours davantage. Dans l’espace d’une semaine,
elle fut atteinte d’une fièvre furieuse, et son pouls monta au chiffre de cent
cinquante battements à la minute. Au bout de deux mois elle avait laissé loin
derrière elle les meilleurs chronomètres de la ville et était en avance sur
l’almanach d’un peu plus de treize jours. Elle était déjà au milieu de
novembre, jouissant des charmes de la neige, qu’octobre n’avait pas encore
fait ses adieux. J’étais en avance sur mon loyer, sur mes paiements, sur
toutes les choses semblables, de telle façon que la situation devenait
insupportable. Je dus la porter chez un horloger pour la faire régler de
nouveau.
Celui-ci me demanda si ma montre avait été déjà réparée. Je dis que non,
qu’elle n’en avait jamais eu besoin. Il me lança un regard de joie mauvaise,
et immédiatement ouvrit la montre. Puis, s’étant logé dans l’œil un
diabolique instrument en bois, il regarda l’intérieur du mécanisme. «La
montre demande impérieusement à être nettoyée et huilée, dit-il. Ensuite
nous la réglerons. Vous pouvez revenir dans huit jours.» Une fois nettoyée et
huilée, puis bien réglée, ma montre se mit à marcher, lentement, comme une
cloche qui sonne à intervalles longs et réguliers. Je commençai à manquer
les trains, je fus en retard pour mes paiements. Je laissai passer l’heure de
mes rendez-vous. Ma montre m’accordait gracieusement deux ou trois jours
de délai pour mes échéances et ensuite me laissait protester. J’en arrivai
graduellement à vivre la veille, puis l’avant-veille et ainsi de suite, et peu à
peu je m’aperçus que j’étais abandonné solitaire le long de la semaine
passée, tandis que le monde vivant disparaissait à ma vue. Il me sembla
ressentir au fond de mon être une sympathie naissante pour la momie du
Muséum et un vif désir d’aller m’entretenir avec elle sur les dernières
nouvelles. Je dus retourner chez un horloger.
Cet individu mit la montre en morceaux sous mes yeux et m’annonça
solennellement que le cylindre était «enflé». Il se fit fort de le réduire en
trois jours à ses dimensions normales. Après cette réparation, la montre se
mit à marquer l’heure «moyenne», mais se refusa obstinément à toute autre
indication. Pendant la moitié du jour, elle ne cessait pas de ronfler, d’aboyer,
de crier; elle éternuait, soufflait avec énergie, à tel point qu’elle troublait
absolument mes pensées et qu’il n’y avait pas dans le pays une montre qui
pût lui tenir tête. Mais le reste du temps elle s’endormait et s’attardait,
s’amusant en route jusqu’à ce que toutes les autres montres laissées en
arrière l’eussent rattrapée. Aussi, en définitive, au bout des vingt-quatre
heures, aux yeux d’un juge impartial, elle paraissait arriver exactement dans
les limites fixées. Mais une moyenne exacte n’est qu’une demi-vertu chez
une montre, et je me décidai à la porter chez un nouvel horloger.
J’appris de lui que le pivot de l’échappement était cassé. J’exprimai ma
joie que ce ne fût rien de plus sérieux. A dire le vrai, je n’avais aucune idée
de ce que pouvait être le «pivot de l’échappement», mais je ne voulus pas
laisser voir mon ignorance à un étranger. Il répara la montre, mais
l’infortunée perdit d’un côté ce qu’elle gagnait d’un autre. Elle partait tout à
coup, puis s’arrêtait net, puis repartait, puis s’arrêtait encore sans aucun
souci de la régularité de ses mouvements. Et chaque fois elle donnait des
secousses comme un fusil qui recule. Pendant quelque temps, je matelassai
ma poitrine avec du coton, mais enfin je fus obligé de recourir à un nouvel
horloger. Ce dernier la démonta, comme les autres avaient fait, et en mania
un moment les débris sous sa loupe. Après cet examen: «Nous allons avoir,
me dit-il, des difficultés avec le régulateur.» Il remit le régulateur en place et
fit un nettoyage complet. La montre, dès lors, marcha très bien, avec ce léger
détail que, toutes les dix minutes, les aiguilles se croisaient comme une paire
de ciseaux et manifestaient dès lors l’intention bien arrêtée de voyager de
compagnie. Le plus grand philosophe du monde eût été incapable de savoir
l’heure avec une montre pareille, et de nouveau je dus m’occuper de
remédier à cet état désastreux.
Cette fois, c’était le verre de la montre qui se trouvait en défaut et qui
gênait le passage des aiguilles. De plus, une grande partie des rouages
avaient besoin d’être réparés. L’horloger fit tout cela pour le mieux, et dès
lors ma montre fonctionna exceptionnellement bien. Notez seulement
qu’après avoir marqué l’heure bien exactement pendant une demi-journée,
tout à coup, les diverses parties du mécanisme se mettaient à partir ensemble
en ronflant comme un essaim d’abeilles. Les aiguilles aussitôt
s’empressaient de tourner sur le cadran si vite que leur individualité devenait
impossible à discerner; à peine si l’on distinguait quelque chose de
semblable à une délicate toile d’araignée. La montre abattait ses vingt-quatre
heures en six ou sept minutes, puis s’arrêtait avec un coup.
J’allai, le cœur navré, chez un dernier horloger et je l’examinai
attentivement tandis qu’il la démontait. Je me préparais à l’interroger
sévèrement, car la chose devenait sérieuse. La montre m’avait coûté à
l’origine deux cents dollars; elle me revenait maintenant à deux ou trois
mille dollars avec les réparations. Mais tout à coup, tandis que je
l’examinais, je reconnus dans cet horloger une vieille connaissance, un de
ces misérables à qui j’avais eu affaire déjà, plus capable de reclouer une
machine à vapeur hors d’usage que de réparer une montre. Le scélérat
examina toutes les parties de la montre avec grand soin, comme les autres
avaient fait, et prononça son verdict avec la même assurance. «Elle fait trop
de vapeur, vous devriez laisser ouverte la soupape de sûreté.» Pour toute
réponse, je lui assénai sur la tête un coup formidable. Il en mourut, et je dus
le faire enterrer à mes frais.
Feu mon oncle William (Dieu ait son âme) avait coutume de dire qu’un
cheval est un bon cheval jusqu’au jour où il s’est une fois emporté, et qu’une
bonne montre est une bonne montre jusqu’au moment où les horlogers, en y
touchant, l’ont ensorcelée. Il se demandait aussi, avec une curiosité, vers
quel métier se tournent tous les étameurs, armuriers, savetiers, mécaniciens,
forgerons qui n’ont pas réussi. Mais personne n’a jamais pu le renseigner sur
ce point.