If a 2% change in the price of a good leads to a 10% change in the quantity demanded of a good, what is the price elasticity of demand? A. 0.02 B. 0.2 C. 5 D. 10 E. 20

A perfectly elastic demand curve is A. upward- sloping. B. vertical. C. not a straight line. D. horizontal. E. downward-sloping.

If you are addicted to chocolate cake such that you buy one piece per day regardless of the price, your price elasticity of demand for chocolate cake is a. infinity. b. 1 . c. more than 1 but less than infinity. d. 0 . e. -1 .

Which of the following is true if the price elasticity of demand for a good is zero? A. The slope of the demand curve is zero. B. The slope of the demand curve is one. C. The demand curve is vertical D. The demand curve is horizontal. E. The price of the good is high.

The price of strawberries falls from $1.50 to$ 1.00 per carton, and the quantity demanded goes from 100,000 to 200,000 cartons. Use the midpoint method to find the price elasticity of demand.

Which of these numbers is divisible by 9? A. 123, B. 234, C. 345

Select all the correct answers. Which statements are true according to the law of demand?

a. An increase in supply leads to an increase in demand.

b. A decrease in supply leads to a decrease in demand.

c. An increase in price leads to a decrease in quantity demanded.

d. A decrease in price leads to an increase in quantity demanded.

e. An increase in price leads to an increase in demand.

Define the price elasticity of demand and provide the formula for calculating the price elasticity of demand using the midpoint method.

Which of the following is likely to have the highest price elasticity of demand?

A) Nike running shoes

B) Running shoes

C) Shoes

D) The price elasticity of demand will be the same for all of the answers listed.

Which of the following statements is true? I. When a good absorbs only a small share of the typical consumer's income, the income effect explains the demand curve's negative slope. II. A change in consumption brought about by a change in purchasing power describes the income effect. III. In the case of an inferior good, the income and substitution effects work in opposite directions. A. I only B. II only C. III only D. II and III only E. I, II, and III

Which of the following would cause the demand for a good to be relatively inelastic? A. The good has a large number of close substitutes B. Expenditures on the good represent a large share of consumer income. C. There is ample time to adjust to price changes. D. The good is a necessity E. The price of the good is in the upper left section of a linear demand curve

Which of the following statements is false?

A) The shift factors for the demand curve are: income, preferences, prices of related goods, the number of buyers, expectations of future price.

B) A change in (own) price changes the demand of a good.

C) A change in demand is graphically represented by a shift in the demand curve.

D) A change in quantity demanded is represented by a movement along a given demand curve.

Which of the following statements is true? a. When a good absorbs only a small share of the typical consumer's income, the income effect explains the demand curve's negative slope. b. A change in consumption brought about by a change in purchasing power describes the substitution effect. c. In the case of an inferior good, the income effect is usually larger than the substitution effect. d. In the case of an inferior good, the income and substitution effects work in opposite directions. e. Normal goods and inferior goods differ in regard to the direction of the substitution effect caused by a price increase.

The basic formula for the price elasticity of the demand coefficient is:

A) percentage change in quantity demanded/percentage change in price.

B) absolute decline in price/absolute increase in quantity demanded.

C) percentage change in price/percentage change in quantity demanded.

D) absolute decline in quantity demanded/absolute increase in price.