Pre-Quiz exercise on elasticity.docx - Pre-Quiz on Elasticity 1 A perfectly inelastic demand schedule A rises upward and to the right but has a constant

Pre-Quiz exercise on elasticity.docx - Pre-Quiz on...

This preview shows page 1 - 2 out of 2 pages.

Pre-Quiz on Elasticity 1. A perfectly inelastic demand schedule: A. rises upward and to the right, but has a constant slope. B. can be represented by a line parallel to the vertical axis. C. cannot be shown on a two-dimensional graph. D. can be represented by a line parallel to the horizontal axis. Answer: 2.When the percentage change in price is greater than the resulting percentage change in quantitydemanded: A.a decrease in price will increase total revenue.B.demand may be either elastic or inelastic.C.an increase in price will increase total revenue.D.demand is elastic.Answer: 3.Block's sells 500 bottles of perfume a month when the price is $7. A huge increase in resourcecosts causes price to rise to $9 and Block's only manages to sell 460 bottles of perfume. The priceelasticity of demand is:
Image of page 1

Subscribe to view the full document.

Image of page 2

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Ask Expert Tutors You can ask 0 bonus questions You can ask 0 questions (0 expire soon) You can ask 0 questions (will expire )
Answers in as fast as 15 minutes