Exam 2 - Part 1 of 1 100.0 100.0 Points Question 1 of 20...

Part 1 of 1 - 100.0/ 100.0 Points
Question 1 of 20
5.0/ 5.0 Points
If the price elasticity of demand is 2, this means that a __________ increase in price causes a
__________ decrease in quantity demanded.

A. 15%; 100%

B. 15%; 10%

C. 20%; 40%

D. 30%; 20%
Question 2 of 20
5.0/ 5.0 Points
Suppose that in a month the price of a gallon of milk increases from $2 to $2.50. At the same
time, the quantity of gallons of milk demanded decreases from 100 to 80. The price elasticity of
demand for gallons of milk (calculated using the midpoint formula) is approximately

A. 0.11

B. 0.2

C. 1

D. 1.2
Question 3 of 20
5.0/ 5.0 Points
The price of apples increases from $1 to $1.10. At the same time, the quantity of apples
demanded decreases from 100 to 90. The price elasticity of demand for apples (calculated using
the initial value formula) is __________ .

Question 4 of 20
5.0/ 5.0 Points
A good synonym for elasticity would be __________ .

A. change

B. demand

C. responsiveness

D. stickiness
Question 5 of 20
5.0/ 5.0 Points
When demand increases and the demand curve shifts to the right, equilibrium price __________

and equilibrium quantity __________ .

A. increases; increases

B. increases; decreases

C. decreases; increases

D. decreases; decreases
Question 6 of 20
5.0/ 5.0 Points
The ratio of the percentage change in quantity demanded to the percentage change in price is
known as the __________ .

A. demand-side shift factor


B. income elasticity of demand

C. price elasticity of demand

D. cross elasticity of demand
Question 7 of 20
5.0/ 5.0 Points
Suppose that in a month the price of tulips increases from $1 to $1.50. At the same time, the