ECON 202 Ole Miss Hayes Midterm Newest 2025/
2026 Questions And Correct
Detailed Answers |Updated & Graded A+
1. The price elasticity of demand coefficient measures:
A. buyer responsiveness to price changes.
B. the extent to which a demand curve shifts as incomes
change.
C. the slope of the demand curve.
D. how far business executives can stretch their fixed
costs. - ANSWER-a
2. The basic formula for the price elasticity of demand
coefficient is:
,A. absolute decline in quantity demanded/absolute
increase in price.
B. percentage change in quantity demanded/percentage
change in price.
C. absolute decline in price/absolute increase in quantity
demanded.
D. percentage change in price/percentage change in
quantity demanded. - ANSWER-b
3. Which of the following is not characteristic of the
demand for a commodity that is elastic?
A. The relative change in quantity demanded is greater
than the relative change in price.
B. Buyers are relatively sensitive to price changes.
,C. Total revenue declines if price is increased.
D. The elasticity coefficient is less than one. - ANSWER-d
4. If the demand for bacon is relatively elastic, a 10
percent decline in the price of bacon will:
A. decrease the amount demanded by more than 10
percent.
B. increase the amount demanded by more than 10
percent.
C. decrease the amount demanded by less than 10
percent.
D. increase the amount demanded by less than 10
percent. - ANSWER-b
, 5. The price of product X is reduced from $100 to $90 and,
as a result, the quantity demanded increases from 50 to
60 units. Therefore demand for X in this price range:
A. has declined.
B. is of unit elasticity.
C. is inelastic.
D. is elastic. - ANSWER-d
6. The price elasticity of demand for beef is about 0.60.
Other things equal, this means that a 20 percent increase
in the price of beef will cause the quantity of beef
demanded to:
A. increase by approximately 12 percent.
B. decrease by approximately 12 percent.
2026 Questions And Correct
Detailed Answers |Updated & Graded A+
1. The price elasticity of demand coefficient measures:
A. buyer responsiveness to price changes.
B. the extent to which a demand curve shifts as incomes
change.
C. the slope of the demand curve.
D. how far business executives can stretch their fixed
costs. - ANSWER-a
2. The basic formula for the price elasticity of demand
coefficient is:
,A. absolute decline in quantity demanded/absolute
increase in price.
B. percentage change in quantity demanded/percentage
change in price.
C. absolute decline in price/absolute increase in quantity
demanded.
D. percentage change in price/percentage change in
quantity demanded. - ANSWER-b
3. Which of the following is not characteristic of the
demand for a commodity that is elastic?
A. The relative change in quantity demanded is greater
than the relative change in price.
B. Buyers are relatively sensitive to price changes.
,C. Total revenue declines if price is increased.
D. The elasticity coefficient is less than one. - ANSWER-d
4. If the demand for bacon is relatively elastic, a 10
percent decline in the price of bacon will:
A. decrease the amount demanded by more than 10
percent.
B. increase the amount demanded by more than 10
percent.
C. decrease the amount demanded by less than 10
percent.
D. increase the amount demanded by less than 10
percent. - ANSWER-b
, 5. The price of product X is reduced from $100 to $90 and,
as a result, the quantity demanded increases from 50 to
60 units. Therefore demand for X in this price range:
A. has declined.
B. is of unit elasticity.
C. is inelastic.
D. is elastic. - ANSWER-d
6. The price elasticity of demand for beef is about 0.60.
Other things equal, this means that a 20 percent increase
in the price of beef will cause the quantity of beef
demanded to:
A. increase by approximately 12 percent.
B. decrease by approximately 12 percent.
