BADM 7200 Module 6: Demand Elasticity and
Demand Estimation Exam Questions and Answers
Started on Tuesday, February 22, 2025, 11:0U PM
State Finished
Completed on Wednesday, February 23, 2025, 11:32 PM
Time taken 1 day
Grade 91.00 out of 100.00
Question 1
Correct 4.00 points out of 4.00
If OPEC increases its price of oil, and still the demand for oil decreases by a very small
amount, we can conclude that the demand for oil is
Select one:
A. relatively elastic.
B. relatively inelastic.
C. perfectly elastic.
D. perfectly inelastic.
The correct answer is: relatively inelastic.
Question 2
Correct 4.00 points out of 4.00
If an item has several good substitutes, the demand curve for that item is likely to be
Select one:
A. relatively inelastic.
B. relatively
elastic. C. perfectly
inelastic.
D. unit elastic.
The correct answer is: relatively elastic.
,Question
3
Correct 4.00 points out of 4.00
When purchases of tennis socks decline following an increase in the price of tennis sneakers
(other things remaining equal), the relationship between these two items can be described as
Select one:
A. complementary.
B. substitutable.
C. unique.
D. ordinary.
The correct answer is: complementary.
Question 4
Correct 4.00 points out of 4.00
The owner of a produce store found that when the price of a head of lettuce was raised
from 50 cents to $1, the quantity sold per hour fell from 18 to 8. The arc elasticity of
demand for lettuce is
Select one:
A. -0.56.
B. -1.57.
C. -0.8.
D. -1.15.
The correct answer is: -1.15.
, Question
5
Correct 4.00 points out of 4.00
If a firm decreases the price of a good and total revenue decreases, then
Select one:
A. the demand for this good is price inelastic.
B. the demand for this good is price elastic.
C. the cross elasticity is negative.
D. the income elasticity is less than 1.
The correct answer is: the demand for this good is price inelastic.
Question 6
Correct 4.00 points out of 4.00
The government unit that wants to achieve "revenue enhancement" will find it
considerably more favorable to enact an excise tax on goods whose demand is
Select one:
A. highly elastic.
B. relatively elastic.
C. highly inelastic.
D. unitary elastic.
The correct answer is: highly inelastic.
Question 7
Incorrect 0.00 points out of 4.00
Which of the following is a test of the statistical significance of the entire regression equation?
Select one:
A. F-test
B. R2
C. t-test
D. Durbin-Watson test
The correct answer is: F-test
Demand Estimation Exam Questions and Answers
Started on Tuesday, February 22, 2025, 11:0U PM
State Finished
Completed on Wednesday, February 23, 2025, 11:32 PM
Time taken 1 day
Grade 91.00 out of 100.00
Question 1
Correct 4.00 points out of 4.00
If OPEC increases its price of oil, and still the demand for oil decreases by a very small
amount, we can conclude that the demand for oil is
Select one:
A. relatively elastic.
B. relatively inelastic.
C. perfectly elastic.
D. perfectly inelastic.
The correct answer is: relatively inelastic.
Question 2
Correct 4.00 points out of 4.00
If an item has several good substitutes, the demand curve for that item is likely to be
Select one:
A. relatively inelastic.
B. relatively
elastic. C. perfectly
inelastic.
D. unit elastic.
The correct answer is: relatively elastic.
,Question
3
Correct 4.00 points out of 4.00
When purchases of tennis socks decline following an increase in the price of tennis sneakers
(other things remaining equal), the relationship between these two items can be described as
Select one:
A. complementary.
B. substitutable.
C. unique.
D. ordinary.
The correct answer is: complementary.
Question 4
Correct 4.00 points out of 4.00
The owner of a produce store found that when the price of a head of lettuce was raised
from 50 cents to $1, the quantity sold per hour fell from 18 to 8. The arc elasticity of
demand for lettuce is
Select one:
A. -0.56.
B. -1.57.
C. -0.8.
D. -1.15.
The correct answer is: -1.15.
, Question
5
Correct 4.00 points out of 4.00
If a firm decreases the price of a good and total revenue decreases, then
Select one:
A. the demand for this good is price inelastic.
B. the demand for this good is price elastic.
C. the cross elasticity is negative.
D. the income elasticity is less than 1.
The correct answer is: the demand for this good is price inelastic.
Question 6
Correct 4.00 points out of 4.00
The government unit that wants to achieve "revenue enhancement" will find it
considerably more favorable to enact an excise tax on goods whose demand is
Select one:
A. highly elastic.
B. relatively elastic.
C. highly inelastic.
D. unitary elastic.
The correct answer is: highly inelastic.
Question 7
Incorrect 0.00 points out of 4.00
Which of the following is a test of the statistical significance of the entire regression equation?
Select one:
A. F-test
B. R2
C. t-test
D. Durbin-Watson test
The correct answer is: F-test
