ECON 2302 Midterm EXAM ( LATEST UPDATE ) 100QNS

ECON 2302 Midterm EXAM • Question 1 Price elasticity of demand is defined as: Selected 2.50000 out of 2.50000 points Answer: the percentage change in quantity demanded divided by the percentage change in price. Answers: the slope of the demand curve. the slope of the demand curve divided by the price. the percentage change in price divided by the percentage change in quantity demanded. Response Feedback: the percentage change in quantity demanded divided by the percentage change in price. Good work • Question 2 2.50000 out of 2.50000 points If the supply curve for a product is vertical, then the elasticity of supply is: Selected Answer: equal to zero. Answers: Response Feedback: equal to zero. equal to 1. greater than 1 but less than infinity. equal to infinity. Good work • Question 3 2.50000 out of 2.50000 points Billy Bob's Barber Shop knows that a 5 percent increase in the price of their haircuts results in a 15 percent decrease in the number of haircuts purchased. What is the elasticity of demand facing Billy Bob's Barber Shop? Selected Answer: 3.0 Answers: 0.15 3.0 0.10 Response Feedback: 0.05 Good work • Question 4 2.50000 out of 2.50000 points When Marietta chooses to only purchase a combination of goods that lie within her budget line, she: Selected Answer: is maximizing utility. Answers: is decreasing utility. Response Feedback: is maximizing utility. likely has negative savings. must reduce the quantity. Good work • Question 5 2.50000 out of 2.50000 points But nearly all supply curves share a basic similarity: they slope . Selected Answer: up from left to right Answers: down from left to right Response Feedback: up from left to right up from right to left down from right to left Good work • Question 6 2.50000 out of 2.50000 points The elasticity of demand is defined as the percentage change in quantity demanded divided by the percentage change in . Selected Answer: price Answers: quantity supplied the slope of the demand curve