Question 1
2 / 2 pts
For the next 6 questions, use the graph above. USING THE MIDPOINT METHOD, what
is the absolute value of the price elasticity of demand between P=100 and P=80?
0.3333
0.5
0.75
1
1.5
2
2.5
3
3.5
Question 2
2 / 2 pts
The value found in the above question is considered to be:
elastic
unit elastic
inelastic
Question 3
2 / 2 pts
Suppose that at this point, producers raised the price by 5%. What would happen to
quantity demanded as a result?
it would rise by 5%
it would fall by 5%
it would rise by more than 5%
it would fall by more than 5%
it would rise by less than 5%
it would fall by less than 5%
Question 4
2 / 2 pts
USING THE MIDPOINT METHOD, what is the absolute value of the price elasticity of
demand between P=40 and P=20?
0.3333
0.5
0.75
1
1.5
2
2.5
3
3.5
Question 5
2 / 2 pts
The value found in the above question is considered to be:
elastic
unit elastic
inelastic
Question 6
2 / 2 pts
Suppose that at this point, producers raised the price by 5%. What would happen to
quantity demanded as a result?
it would rise by 5%
it would fall by 5%
it would rise by more than 5%
it would fall by more than 5%
it would rise by less than 5%
it would fall by less than 5%
Question 7
2 / 2 pts
The following graph below represents a linear demand function.
Use the graph to answer the following questions. Elasticity values are greater than 1 (in
absolute value) in the portion of the graph described by letter _____.
a
b
c
Question 8
2 / 2 pts
Elasticity values are less than 1 (in absolute value) in the portion of the graph described
by letter _____.
