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. inelastic

B. elastic

C. perfectly inelastic

D. unit elastic

Question #2

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

A. microwave ovens

B. laptops

C. t-shirts

D. custom painted pottery

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 inelastic

B. E = 0.8 supply is inelastic

C. E = 0.8 supply is elastic

D. E = 1.25 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 inelastic

C. normal and demand is elastic

D. inferior and demand is elastic

Question #5

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

A. very responsive to changes in price

B. not responsive to changes in income

C. very responsive to changes in income

D. not responsive to changes in price