ECON 213 Quiz 7 Liberty University Solution
Question 1 Which one of the following pairs of goods is likely to have a positive crossprice elasticity of demand?
Question 2 If the income elasticity of demand for noodles is –2 and the percentage change in the quantity consumed is 5%, what is the percentage change in income?
Question 3 The reason that Darren buys a lot more paintings when the price of art falls is that:
Question 4 Howard buys 5 suits a year when he earns $70,000. When his income increases to $200,000, he buys 15 suits a year. From the midpoint method, his income elasticity of demand for suits is:
Question 5 Henry raised his quantity demanded of hockey pucks from 100 to 150 when the price fell from $5 to $3 per puck. Using the midpoint method, his price elasticity of demand is:
Question 6 Robert’s Furniture produces highquality wooden bedroom sets that take approximately 4 months to make, from start to finish. The price elasticity of supply for these bedroom sets in the short term is:
Question 7 The Sunny Softball league found that, when it changed its ticket prices from $10 to $5, there was a more than proportional but not infinite increase in attendance. The price elasticity of demand is:
Question 8 We would expect to see a positive crossprice elasticity between:
Question 9 What good is most likely to have an income elasticity of demand equal to 0.3?
Question 10 Jane says that she will always spend $20 a week on lattes. Jane’s demand for lattes is price:
Question 11 As you move left along the demand curve, the price elasticity of demand:
Question 12 Firms are indifferent to changing prices when the price elasticity of demand is:
Question 13 Refer to the following graphs to answer the questions that follow: Which of these graphs most likely depicts a price elasticity of demand of –5?
Question 14 If the crossprice elasticity of demand between Good A and Good B is 3, the price of Good B increases, and the price elasticity of demand for Good B is inelastic, we can expect to see a ________ change in the quantity demanded for Good A:
Question 15 If your friend says, “I am never going to buy another Avicii remix again!” his price elasticity of demand for Avicii remixes is:
Question 16 Shawna wins the lottery and her income increases by 60%. She used to buy 10 pints of cottage cheese per month and now she buys 12 pints. Her income elasticity of demand for cottage cheese is ________, making it a(n) ________ good.
Question 17 The initial price of picture frames is $6 and suppliers offer 20 frames. When the price falls to $4, suppliers offer only 10. The price elasticity of supply is:
Question 18 Price elasticity of demand is measured as the:
Question 19 When the price of erasers increases from $1.50 to $2.50, the quantity demanded of pencils is unchanged. The crossprice elasticity of demand between erasers and pencils is ________ because erasers and pencils ________.
Question 20 A 15% increase in the price of cookies results in a 9% decrease in the quantity of cookies sold. The revenue received by cookie suppliers will ________ because the price elasticity of demand for cookies is ________.