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ECON 247 Quiz 3 Questions and Detailed Correct Answers
Graded A+ | 2026/2027 Update | Athabasca University
Question 1
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When studying how some event or policy affects a market, elasticity provides information on
Select one:
a. the direction and the efficiency of the effect on the market.
b. the direction and the magnitude of the effect on the market.
c. the magnitude and the efficiency of the effect on the market.
d. the efficiency and the equity of the effect on the market.
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Your answer is correct.
The correct answer is: the direction and the magnitude of the effect on the market.
Question 2
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Refer to the figure below. What price do sellers receive after the tax is imposed?
, lOMoAR cPSD| 63316909
Select one:
a. $5.00
b. $6.00
c. $7.00
d. $8.00
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Your answer is correct.
The correct answer is: $5.00
Question 3
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Rent control is best characterized as Select one:
a. the most effective way to provide affordable housing.
b. the most efficient way to allocate housing.
c. a common example of a price ceiling.
d. a common example of a social problem solved by government regulation.
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Your answer is correct.
The correct answer is: a common example of a price ceiling.
Question 4
Correct
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If a 5% increase in price causes a 15% decrease in quantity demanded, what might be said about
this product?
Select one:
a. It might be part of a broadly defined market.
b. It has no close substitute.
c. It might be a luxury.
d. It might have a short time horizon.
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Your answer is correct.
The correct answer is: It might be a luxury.
Question 5
Correct
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Question text
Brenna’s income elasticity of demand for football tickets is 1.5. All else being equal, if her income
increases by 18% she will buy Select one:
ECON 247 Quiz 3 Questions and Detailed Correct Answers
Graded A+ | 2026/2027 Update | Athabasca University
Question 1
Correct
Mark 1.00 out of 1.00
Flag question
Question text
When studying how some event or policy affects a market, elasticity provides information on
Select one:
a. the direction and the efficiency of the effect on the market.
b. the direction and the magnitude of the effect on the market.
c. the magnitude and the efficiency of the effect on the market.
d. the efficiency and the equity of the effect on the market.
Feedback
Your answer is correct.
The correct answer is: the direction and the magnitude of the effect on the market.
Question 2
Correct
Mark 1.00 out of 1.00
Flag question
Question text
Refer to the figure below. What price do sellers receive after the tax is imposed?
, lOMoAR cPSD| 63316909
Select one:
a. $5.00
b. $6.00
c. $7.00
d. $8.00
Feedback
Your answer is correct.
The correct answer is: $5.00
Question 3
Correct
Mark 1.00 out of 1.00
Flag question
Question text
Rent control is best characterized as Select one:
a. the most effective way to provide affordable housing.
b. the most efficient way to allocate housing.
c. a common example of a price ceiling.
d. a common example of a social problem solved by government regulation.
, lOMoAR cPSD| 63316909
Feedback
Your answer is correct.
The correct answer is: a common example of a price ceiling.
Question 4
Correct
Mark 1.00 out of 1.00
Flag question
Question text
If a 5% increase in price causes a 15% decrease in quantity demanded, what might be said about
this product?
Select one:
a. It might be part of a broadly defined market.
b. It has no close substitute.
c. It might be a luxury.
d. It might have a short time horizon.
Feedback
Your answer is correct.
The correct answer is: It might be a luxury.
Question 5
Correct
Mark 1.00 out of 1.00
Flag question
Question text
Brenna’s income elasticity of demand for football tickets is 1.5. All else being equal, if her income
increases by 18% she will buy Select one:
