Glendale Community College » Economics » Econ 102 - Principles of Macroeconomics » Winter 2021

Question #1

If the price elasticity of demand is 0.98 the demand is

A. elastic

B. perfectly inelastic

C. unit elastic

D. inelastic

Question #2

Which of the following items would likely have an inelastic supply?

A. laptops

B. microwave ovens

C. custom painted pottery

D. t-shirts

Question #3

A 20% change in price leads to a 16% change in quantity supplied. What is the price elasticity of supply?

A. E = 1.25 supply is elastic

B. E = 1.25 supply is inelastic

C. E = 0.8 supply is inelastic

D. E = 0.8 supply is elastic

Question #4

The income elasticity of a good is - 1.72. The good is _____________ and demand is ______________ .

A. normal and demand is inelastic

B. inferior and demand is elastic

C. normal and demand is elastic

D. inferior and demand is inelastic

Question #5

When price elasticity of demand of a particular good is inelastic, this means that demand is

A. not responsive to changes in price

B. not responsive to changes in income

C. very responsive to changes in income

D. very responsive to changes in price