# The price elasticity of demand reflects

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Question 1 of 205.0 PointsThe price elasticity of demand reflects the responsiveness of __________ .A. firms to changes in demandB. demand to a change in price of a substitute goodC. demand to a change in priceD. quantity demanded to a change in priceQuestion 2 of 205.0 PointsIn considering the relationships between price and quantity demanded, ceteris paribus directsthe economist to assume that __________ .A. price increases affect quantityB. quantity increases affect pricesC. neither price nor quantity affect demandD. all other variables remain unchangedQuestion 3 of 205.0 PointsThe price of apples increases from \$1 to \$1.10. At the same time, the quantity of applesdemanded decreases from 100 to 90. The price elasticity of demand for apples (calculated usingthe initial value formula) is __________ .A. 0.02B. 0.9C. 1D. 1.1Question 4 of 205.0 PointsSuppose that Victoria and her friends are running a fundraiser by selling donuts. They want toknow what will happen to their revenue if they increase the price of each donut from \$0.80 to\$1. What concept do they need to apply to find out their expected revenue?A. price elasticity of supplyB. price elasticity of demandC. cross elasticity of demandD. income elasticity of demandQuestion 5 of 205.0 PointsThe quantity of pencils sold is 1000 at the unit price \$0.5. Suppose the price elasticity ofdemand for pencils by the initial value method is 2, and you would like to increase the quantitysold to 1200. Then the new price for pencils must be __________ .A. \$0.05B. \$0.25
C. \$0.30D. \$0.45Question 6 of 205.0 PointsA good synonym for elasticity would be __________ .A. changeB. demandC. responsivenessD. stickinessQuestion 7 of 205.0 PointsThe price elasticity of demand is calculated by __________ .A. the change in price divided by the change in quantity demandedB. the change in quantity demanded divided by the change in priceC. the percentage change in price divided by the percentage change in quantity demandedD. the percentage change in quantity demanded divided by the percentage change in priceQuestion 8 of 205.0 PointsThe market demand curve __________ .A. shows the relationship between the price of a good and the quantity that all consumerstogether are willing to buyB. is drawn assuming that variables such as income and tastes are variableC. is drawn assuming that the number of consumers is variableD. is drawn assuming that the selling price is fixedQuestion 9 of 205.0 PointsWhen demand decreases and the demand curve shifts to the left, equilibrium price __________and equilibrium quantity __________ .A. increases; increasesB. increases; decreasesC. decreases; increasesD. decreases; decreasesQuestion 10 of 205.0 PointsWhen there is a change in the quantity demanded it means that __________ .A. the hours the customer can buy products each day have increasedB. the number of products in inventory have increasedC. the quantity a consumer is willing to buy changes when the price changesD. the selling price of the products has not changed
Question 11 of 205.0 PointsSuppose that there are only three consumers of a product. At a price of \$6 per unit, the firstconsumer would buy 12 units of the product, the second consumer would buy 8 units, and thethird consumer would buy 3 units of the product. If you drew a market demand curve for thisproduct, the quantity demanded at a price of \$6 would be __________ .A. 23 unitsB. 20 unitsC. 12 unitsD. 11 unitsQuestion 12 of 205.0 PointsSuppose that in a month the price of oranges increases from \$.75 to \$1. At the same time, thequantity of oranges demanded decreases from 100 to 80. The price elasticity of demand fororanges (calculated using the initial value formula) is __________ . ?A. 0.75B. 0.6C. 0.25D. 20Question 13 of 205.0 PointsA demand curve is defined as the relationship between __________ .A. the price of a good and the quantity of that good that consumers are willing to buyB. the price of a good and the quantity of that good that producers are willing to sellC. the income of consumers and the quantity of a good that consumers are willing to buyD. the income of consumers and the quantity of a good that producers are willing to sellQuestion 14 of 205.0 PointsThe quantity of TVs sold is 100 at the unit price \$200. Suppose the price elasticity of demand forTVs by the initial value method is 2.0, and you would like to decrease the unit price for TVs to\$150. Then the new quantity sold must be __________ .A. 125B. 150C. 200D. 250Question 15 of 205.0 PointsSuppose that in a month the price of milk increases from \$2 to \$3 a gallon. At the same time,the quantity of gallons of milk demanded decreases from 200 to 190. The price elasticity ofdemand for milk (calculated using the initial value formula) is __________ .
A. 0.1B. 0.2C. 1D. 10Question 16 of 205.0 PointsThe quantity demanded of a product increases as __________ .A. consumer income risesB. the prices of other products fallC. the price of the product risesD. the price of the product fallsQuestion 17 of 205.0 PointsThe ratio of the percentage change in quantity demanded to the percentage change in price isknown as the __________ .A. demand-side shift factorB. income elasticity of demandC. price elasticity of demandD. cross elasticity of demandQuestion 18 of 205.0 PointsThe Law of Demand can be explained as __________ .A. a lot of people wanting the same thingB. the higher the price, the smaller the quantity demanded, ceteris paribusC. people willing to make limited sacrifices to acquire productsD. legal reasons people make purchases in the marketplaceQuestion 19 of 205.0 PointsA change in the quantity demanded of a product is the result of a change in __________ .A. the price of the productB. the price of related goodsC. consumer incomeD. the cost of producing the productQuestion 20 of 205.0 PointsSuppose that in a month the price of a dozen of eggs increases from \$1.50 to \$2. At the sametime, the quantity of dozens of eggs demanded decreases from 200 to 150. The price elasticityof demand for dozens of eggs is __________ .A. perfectly inelastic
B. inelasticC. unitary elastic D. elastic

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