ECO 202 Price Elasticity of Demand Exam
Review
1. Price elasticity of demand measures:
A) Change in income
B) Responsiveness of quantity demanded to price change
C) Shift in supply
D) Change in cost
Answer: B
2. If elasticity = 0.3, demand is:
A) Elastic
B) Inelastic
C) Unit elastic
D) Perfectly elastic
Answer: B
3. If elasticity = 2.2, demand is:
A) Inelastic
B) Elastic
C) Unit elastic
D) Zero elastic
Answer: B
4. If price rises by 10% and elasticity = 2, quantity demanded will:
, A) Fall by 20%
B) Fall by 2%
C) Rise by 20%
D) Not change
Answer: A
5. If price falls by 15% and elasticity = 0.5, quantity demanded will:
A) Rise by 7.5%
B) Rise by 15%
C) Rise by 30%
D) Fall by 7.5%
Answer: A
6. If elasticity = 1, demand is:
A) Elastic
B) Inelastic
C) Unit elastic
D) Perfectly inelastic
Answer: C
7. A perfectly inelastic demand curve is:
A) Horizontal
B) Vertical
C) Downward sloping
D) Upward sloping
Answer: B
8. A perfectly elastic demand curve is:
Review
1. Price elasticity of demand measures:
A) Change in income
B) Responsiveness of quantity demanded to price change
C) Shift in supply
D) Change in cost
Answer: B
2. If elasticity = 0.3, demand is:
A) Elastic
B) Inelastic
C) Unit elastic
D) Perfectly elastic
Answer: B
3. If elasticity = 2.2, demand is:
A) Inelastic
B) Elastic
C) Unit elastic
D) Zero elastic
Answer: B
4. If price rises by 10% and elasticity = 2, quantity demanded will:
, A) Fall by 20%
B) Fall by 2%
C) Rise by 20%
D) Not change
Answer: A
5. If price falls by 15% and elasticity = 0.5, quantity demanded will:
A) Rise by 7.5%
B) Rise by 15%
C) Rise by 30%
D) Fall by 7.5%
Answer: A
6. If elasticity = 1, demand is:
A) Elastic
B) Inelastic
C) Unit elastic
D) Perfectly inelastic
Answer: C
7. A perfectly inelastic demand curve is:
A) Horizontal
B) Vertical
C) Downward sloping
D) Upward sloping
Answer: B
8. A perfectly elastic demand curve is:
