Econ Unit 5 [ACTUAL EXAM ] LATEST VERSION
[QUESTIONS AND ANSWERS] DETAILED AND
VERIFIED FOR GUARANTEED PASS- LATEST
UPDATE 2025 GRADED A (BRAND NEW!!)
Which of the following is consistent with the elasticities given in Table 5-1?
a. A is laundry detergent and B is Tide.
b. A is Diet Pepsi and B is soda.
c. A is food and B is a yacht.
d. A is toilet paper and B is candles. - CORRECT ANSWER b. A is Diet Pepsi
and B is soda.
For a particular good, a 5 percent increase in price causes a 2 percent decrease
in quantity demanded. Which of the following statements is most likely applicable
to this good?
a. There are many close substitutes for this good.
b. The good is a luxury.
c. The market for the good is broadly defined.
d. The relevant time horizon is long. - CORRECT ANSWER a. There are many
close substitutes for this good.
For a particular good, a 3 percent increase in price causes a 10 percent decrease
in quantity demanded. Which of the following statements is most likely applicable
to this good?
a. The relevant time horizon is short.
b. The good is a necessity.
c. The market for the good is broadly defined.
, d. There are many close substitutes for this good. - CORRECT ANSWER d.
There are many close substitutes for this good.
For a particular good, a 10 percent increase in price causes a 3 percent decrease
in quantity demanded. Which of the following statements is most likely applicable
to this good?
a. The relevant time horizon is short.
b. The good is a luxury.
c. The market for the good is narrowly defined.
d. There are many close substitutes for this good. - CORRECT ANSWER a. The
relevant time horizon is short.
Studies indicate that the price elasticity of demand for cigarettes is about 0.4. A
government policy aimed at reducing smoking changed the price of a pack of
cigarettes from $2 to $6. According to the midpoint method, the government
policy should have reduced smoking by
a. 30%.
b. 40%.
c. 80%.
d. 250%. - CORRECT ANSWER b. 40%.
Price Quantity
250 0
200 30
150 70
100 110
50 150
0 190
[QUESTIONS AND ANSWERS] DETAILED AND
VERIFIED FOR GUARANTEED PASS- LATEST
UPDATE 2025 GRADED A (BRAND NEW!!)
Which of the following is consistent with the elasticities given in Table 5-1?
a. A is laundry detergent and B is Tide.
b. A is Diet Pepsi and B is soda.
c. A is food and B is a yacht.
d. A is toilet paper and B is candles. - CORRECT ANSWER b. A is Diet Pepsi
and B is soda.
For a particular good, a 5 percent increase in price causes a 2 percent decrease
in quantity demanded. Which of the following statements is most likely applicable
to this good?
a. There are many close substitutes for this good.
b. The good is a luxury.
c. The market for the good is broadly defined.
d. The relevant time horizon is long. - CORRECT ANSWER a. There are many
close substitutes for this good.
For a particular good, a 3 percent increase in price causes a 10 percent decrease
in quantity demanded. Which of the following statements is most likely applicable
to this good?
a. The relevant time horizon is short.
b. The good is a necessity.
c. The market for the good is broadly defined.
, d. There are many close substitutes for this good. - CORRECT ANSWER d.
There are many close substitutes for this good.
For a particular good, a 10 percent increase in price causes a 3 percent decrease
in quantity demanded. Which of the following statements is most likely applicable
to this good?
a. The relevant time horizon is short.
b. The good is a luxury.
c. The market for the good is narrowly defined.
d. There are many close substitutes for this good. - CORRECT ANSWER a. The
relevant time horizon is short.
Studies indicate that the price elasticity of demand for cigarettes is about 0.4. A
government policy aimed at reducing smoking changed the price of a pack of
cigarettes from $2 to $6. According to the midpoint method, the government
policy should have reduced smoking by
a. 30%.
b. 40%.
c. 80%.
d. 250%. - CORRECT ANSWER b. 40%.
Price Quantity
250 0
200 30
150 70
100 110
50 150
0 190
