ECON 201 Week 3 Quiz (Chapter 4 and 5) | American Military University

ECON 201 Week 3 Quiz (Chapter 4 and 5)

Q1 Demand is price inelastic if:

Question options:


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.



Q2 If the absolute value of price elasticity is greater than 1, this means the demand curve in that region is:

Question options:


price elastic.


price inelastic.


unit price elastic.


upward sloping.

Question
points
3

Which of the following will lead to a decrease in total revenue?

Question options:


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
points
4

If total revenue goes up when price falls, the price elasticity of demand is said to be:

Question options:


price inelastic.


unit price elastic.


price elastic.


positive.

Question
points
5

Price elasticity of demand measures the responsiveness of the change in:

Question options:


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
points
6

The price elasticity of demand is:
Question options:


always positive.


always greater than 1.


usually equal to 1.