AMU ECON 201 Week 3 Quiz Questions and
Answers with Complete Solutions 100% Correct |
2025-2026 Update
Question 1 points
Demand is price inelastic if:
the price of the good responds slightly to a quantity change. the
demand curve shifts very little when a demand shifter changes.
the percentage change in quantity demanded is relatively small in response to a relatively large percentage
change in price.
all of the above are true.
Question 2 points
If the absolute value of price elasticity is greater than 1, this means the demand curve in that region is:
price elastic.
price inelastic. unit
price elastic.
upward sloping.
Question 3 points
Which of the following will lead to a decrease in total revenue?
price goes up and demand is perfectly inelastic
price goes up and demand is price inelastic price
declines and demand is price elastic
price increases and demand is price elastic
, Question 4 points
If total revenue goes up when price falls, the price elasticity of demand is said to be:
price inelastic. unit
price elastic.
price elastic.
positive.
p
Question 5 points
Price elasticity of demand measures the responsiveness of the change in:
quantity demanded to a change in price.
price to a change in quantity demanded.
slope of the demand curve to a change in price. slope of the
demand curve to a change in quantity demanded.
Question 6 points
The price elasticity of demand is: always
positive.
always greater than 1. usually
equal to 1.
always negative.
Question 7 points
A men's tie store sold an average of 30 ties per day when the price was $5 per tie but sold 50 of the same ties per
day when the price was $3 per tie. Hence, the absolute value of the price elasticity of demand is:
greater than zero but less than 1.
equal to 1.
greater than 1 but less than 3. greater
than 3.
Answers with Complete Solutions 100% Correct |
2025-2026 Update
Question 1 points
Demand is price inelastic if:
the price of the good responds slightly to a quantity change. the
demand curve shifts very little when a demand shifter changes.
the percentage change in quantity demanded is relatively small in response to a relatively large percentage
change in price.
all of the above are true.
Question 2 points
If the absolute value of price elasticity is greater than 1, this means the demand curve in that region is:
price elastic.
price inelastic. unit
price elastic.
upward sloping.
Question 3 points
Which of the following will lead to a decrease in total revenue?
price goes up and demand is perfectly inelastic
price goes up and demand is price inelastic price
declines and demand is price elastic
price increases and demand is price elastic
, Question 4 points
If total revenue goes up when price falls, the price elasticity of demand is said to be:
price inelastic. unit
price elastic.
price elastic.
positive.
p
Question 5 points
Price elasticity of demand measures the responsiveness of the change in:
quantity demanded to a change in price.
price to a change in quantity demanded.
slope of the demand curve to a change in price. slope of the
demand curve to a change in quantity demanded.
Question 6 points
The price elasticity of demand is: always
positive.
always greater than 1. usually
equal to 1.
always negative.
Question 7 points
A men's tie store sold an average of 30 ties per day when the price was $5 per tie but sold 50 of the same ties per
day when the price was $3 per tie. Hence, the absolute value of the price elasticity of demand is:
greater than zero but less than 1.
equal to 1.
greater than 1 but less than 3. greater
than 3.
