Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.

Normal Size Small Size show me how

Normal Size Small Size show me how

# Ekonomiks Daniels

### Professor Daniels Eco II Review

Question | Answer |
---|---|

The ratio of the percentage change in a dependent variable to the percentage change in an independent variable, all other things unchanged, is: | Elasticity |

Elasticity is: | The ratio of the percentage change in a dependent variable to the percentage change in an independent variable. |

The ratio percentage change in the quantity demanded to the-percentage change in price, all other things unchanged, is: | price elasticity of demand |

Price elasticity of demand measures the responsiveness of the change in: | quantity demanded to a change in price. |

The price elasticity of demand is measured by: | dividing the percentage in quantity demanded by the percentage change in price |

The price elasticity of demand is: | usually equal to 1 |

When prices goes down, the quantity demanded goes up. Price elasticity measures: | how responsive the quantity change is in relation to the price change |

Suppose at a price of $10 the quantity demanded is 100. When price falls to $8, the quantity demanded increases to 130. The price elasticity of demand between the prices of $10 and $8 is approximately: | -1.17 |

The price elasticity of demand can be found by: | examining the relative percentage change in quantity demanded goes in the opposite direction |

If the price of a good is increased by 15 percent and the quantity demanded changes by 20 percent, then the price elasticity of demand is equal to: | approximately -1.33 |

Using the method of arc elasticity to calculate price elasticity of demand eliminates the problem of: | different elasticities, depending on whether price decreases or increases |

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: | equal to 1 |

A shire manufacturer sold 10 dozen shirts per day when the price was $4 per shirt but sold 15 dozen shirts per day when the price was $3 per shirt. Hence, the absolute value of the price elasticity of demand is: | greater than 1 but less than 3 |

The concept of elasticity is most closely related to: | the law of demand |

The concept of elasticity is most closely related to: | a movement along the demand curve |

Calculating percentage changes relative to the average value of each variable between two points is: | arc elasticity |

Price elasticity of demand is computed as the arc elasticity by: | calculating percentage changes relative to the average value of each variable between two points |

If the price of chocolate-covered peanuts decreases from $1.10 to $.90 and the quantity demanded increases from 190 bags to 210 bags, this indicates that, if other things are unchanged, the price elasticity of demand is: | -.5 |

If the price of chocolate-covered peanuts decreases from $1.10 to $.90 and the quantity demanded increases from 180 bags to 220 bags, this indicates that, if other things are unchanged, the price elasticity of demand is: | -1 |

If the price of chocolate-covered peanuts decreased from $1.05 to $.95 and the quantity demanded increases from 180 bags to 220 bags, this indicates that, if others things are unchanged, the price elasticity of demand is: | -2 |

If the price of chocolate-covered peanuts decreases from $1.10 to $.90 and the quantity demanded does not change, this indicates that, if other things are unchanged, the price elasticity of demand is: | 0 |

If the price of chocolate-covered peanuts decreases from $1.10 to $.90 and the quantity demanded increases from 0 bags to 400 bags, this indicates that, if other things are unchanged, the price elasticity of demand is: | greater that 2 (absolute value) |

The price elasticity of a demand curve with a constant slope: | increases in absolute value as the price rises |

The price elasticity of a demand curve with a constant slope | decreases in absolute value as quantity demanded rises. |

Suppose the demand curve has a slope equal to negative 1. The price elasticity of demand at any point on this demand curve is: | not described by any above: infinite,equal to zero, greater than 1, but less than infinite |

The price elasticity of demand is calculated for: | small changes in price |

A linear demand curve will have absolute values of the coefficient of price elasticity that | range from less than 1 to greater than 1 |

A Linear Demand Curve | can have both elastic and inelastic price elasticity of demand |

Along the upper half of a linear demand curve, the price elasticity of demand will be | price elastic |

Along the upper half of a linear demand curve, the price elasticity of demand will be | price inelastic |

A linear demand curve will have which of the following properties? | a slope that is constant and price elasticity that varies |

An upward movement along a linear demand curve from lower prices to higher prices will result in: | increasing price elasticity |

Assuming a linear demand curve, lower prices would result in: | less price elastic demand |

Created by:
bonesg8r
on 2010-09-14