Econ 001 - Principles of Economics » Fall 2021 » Quiz on Lesson 13

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Question #1
Which of the following has the most ELASTIC Demand?
A.   Food in general
B.   DiGiorno Frozen Pizzas
C.   Pizzas
Question #2
The "Elasticity formula" always puts the quantity percent-change on the top, and whatever is impacting Qd (Price, Income, or Cross-Price percentage change) on the bottom of the fraction.
A.   FALSE
B.   TRUE
Question #3
You're going to Rome, but not until next summer (several months from now). Your demand for hotel rooms (as you start looking at hotel options) is likely to be
A.   elastic
B.   inelastic
Question #4
If my percentage change in Quantity demanded is +40%, for a percentage change in my Income of -10%, then
A.   Income Elasticity of Demand is +1/4 (or +.5), and it's a Superior-Normal good.
B.   Income Elasticity of Demand is -1/4 (or -.25), and it's an Inferior good.
C.   Income Elasticity of Demand is -4, and it's an Inferior good.
D.   Income Elasticity of Demand is +4, and it's a Superior-Normal good.
Question #5
Which of the following means you have "ELASTIC" Demanders?
A.   there are a large number of substitutes around for your product, your product is a non-essential "luxury" item and your product is a major expense to customers
B.   there are no substitutes for your product, your product is a minor (small) expense to customers, and there are a large number of substitutes around for your product
C.   there are no substitutes for your product, your product is a major expense to customers, and your product is a necessity
D.   there are no substitutes for your product, your product is a minor (small) expense to customers, and your product is a necessity
Question #6
The Supply of pet sitters is more inelastic than the Supply of tax accountants.
A.   FALSE
B.   TRUE
Question #7
Demand for heating oil is likely to be
A.   elastic.
B.   inelastic.
Question #8
The Cross-Price Elasticity value is +3.5. That means the two goods are
A.   related as Complements, such as milk and cereal.
B.   related as Substitutes, such as brownies and cookies.
Question #9
You raise the Price for your handmade Christmas ornaments. Your Total Revenue rises as a result. This means your customers have
A.   "Unit Elastic" demand
B.   "Inelastic" demand
C.   "Elastic" demand

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