Q1. Assume that Rajesh Singh’s income increased from $20,000 per year to $30,000 per year, and his demand for “store-brand” bread decreased from 80 loaves to 40 loaves per year. Which of the following most accurately describes Singh’s income elasticity for store-brand bread? A) Income elasticity is -0.60 and store-brand bread is an inferior good. B) Income elasticity is -1.67 and store-brand bread is an inferior good. C) Income elasticity is +1.00 and store-brand bread is a complimentary good.
Q2. The percent change in demand for a good divided by the percent change in the price of an other good is known as the: A) income elasticity of demand. B) price elasticity of demand. C) cross elasticity of demand. Q3. If a 10% income increase caused a group of consumers to increase their purchases of television sets from 95 to 105, the group's income elasticity of demand for television sets would be closest to: A) 1.00. B) 0.10. C) 2.00.
Q4. Price elasticity of demand is most accurately defined as the change in: A) quantity demanded in response to a change in market price. B) market price in response to a change in the quantity demanded. C) quantity demanded in response to a change in income.
Q5. George’s Appliance
Center sells big screen televisions. On a representative model, when the price was reduced from $2,450 to $2,275, monthly demand increased from 175 to 211 units. What is the price elasticity of demand? A) -1.69. B) -2.53. C) -2.14.
[此贴子已经被作者于2008-12-31 9:19:09编辑过] | 
发表于 2008-12-31 09:17
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