ECON102 MID TERM EXAM BEST QUESTIONS WITH ANSWERS GRADED A+ 2022 UPDATE

ECON102 MID TERM EXAM BEST QUESTIONS WITH ANSWERS
GRADED A+ 2022 UPDATE
If a product's price rises by 6 percent, and its quantity demanded falls by 8 percent, then we
can say that demand for this product is:
Select one:
a. perfectly inelastic.
b. elastic.


c. unitary elastic.
d. inelastic.



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If the quantity supplied responds substantially to a relatively small change in price, supply
would be:
Select one:
a. price-elastic.



b. insensitive to changes in price.
c. price-inelastic.
d. negatively sloped.




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If the cross elasticity of demand between chicken and fish is 0.8, then chicken and fish are:
Select one:


ECON102 MID TERM EXAM BEST QUESTIONS WITH ANSWERS
GRADED A+ 2022 UPDATE

, ECON102 MID TERM EXAM BEST QUESTIONS WITH ANSWERS
GRADED A+ 2022 UPDATE
a. substitutes.



b. not related.
c. normal goods.
d. complements.



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If a university decreases the price of tickets to football games to collect more revenue, it is
assuming that the demand for tickets is:
Select one:
a. unstable.
b. price-elastic.


c. price unit-elastic.
d. price-inelastic.




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If someone did not regard health care as very important, often using home remedies and
other substitutes, his or her demand curve for health care would most likely be over
the relevant range of prices for health care.
Select one:
a. vertical
b. more price-elastic

ECON102 MID TERM EXAM BEST QUESTIONS WITH ANSWERS
GRADED A+ 2022 UPDATE

, ECON102 MID TERM EXAM BEST QUESTIONS WITH ANSWERS
GRADED A+ 2022 UPDATE
c. more price-inelastic
d. horizontal



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The price elasticity of demand is computed as the percentage change in:
Select one:
a. price divided by the percentage change in quantity demanded.
b. quantity demanded divided by the percentage change in income.
c. quantity demanded divided by the percentage change in price.



d. quantity demanded divided by the percentage change in quantity supplied.




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The absolute value of the price elasticity of demand for gasoline in the long run has been
estimated to be 1.5. If an extended war in the Middle East caused the price of oil (from which
gasoline is made) to increase and remain high for a decade, how would that affect total
expenditures on gasoline in the long run, all other things equal? (Hint: Consider the change in
gasoline prices.)
Select one:
a. Total expenditures would fall.



b. Total expenditures would remain unchanged.
c. Not enough information is given to answer the question.
ECON102 MIDwould
d. Total expenditures TERMrise. EXAM BEST QUESTIONS WITH ANSWERS
GRADED A+ 2022 UPDATE

, ECON102 MID TERM EXAM BEST QUESTIONS WITH ANSWERS
GRADED A+ 2022 UPDATE

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Suppose that the quantity demanded for a product falls by 9 percent as people's incomes fall
by 3 percent. What is the income elasticity for this good?
Select one:
a. -0.33
b. 0.33
c. 3.00



d. -3.00



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ECON102 MID TERM EXAM BEST QUESTIONS WITH ANSWERS
Which factor is the most important in determining the price elasticity of supply?

GRADED A+ 2022 UPDATE