Exam 2 - 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

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

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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
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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 __________ .
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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 __________
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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
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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
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