Q1. Suppose that a given MP3 player now costs $300, and sales are now 5,000 units per month. The manufacturer has determined that if the price is reduced by $25, the demand will increase by 250 units per month. Calculate and describe the elasticity of demand. A) -10.0, elastic. B) -0.56, inelastic. C) -0.56, elastic.
Q2. If the demand curve for a given product is a straight line, this indicates that: A) demand is unit elastic. B) demand is more elastic at higher prices. C) elasticity is constant along the demand curve.
Q3. If the price of World Cup Soccer tickets increases from $40 a ticket to $50 a ticket and the quantity demanded of tickets stays the same, demand for the tickets is: A) elastic, but not perfectly elastic. B) inelastic, but not perfectly inelastic. C) perfectly inelastic.
Q4. When demand for a good is inelastic, a higher price will: A) fail to reduce the quantity demanded for the good. B) lead to an increase in total expenditures for the good. C) have no impact on the demand for the good.
Q5. If a good has elastic demand, a small price decrease will cause: A) a larger increase in quantity demanded. B) no change in the quantity demanded. C) a larger decrease in the quantity demanded. | 
发表于 2008-12-31 09:35
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