4A Web Quiz.docx - (4A Web Quiz 1 Which of the following...

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(4A Web Quiz) 1) Which of the following most closely relates to Price Elasticity of Demand? Ans: HOW MUCH 2) Which of the following best defines Price Elasticity of Demand? Ans: 3) Use the midpoint formula to calculate the coefficient of price elasticity of demand for a price change from $80 to $70. Ans: 2.1 Midpoint Formula
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4) If Ed=2.1, what would happen to quantity demanded if the price goes up by 10%? Ans: Quantity demanded would go down by 21% If Ed=0.69, what would happen to quantity demanded if the price goes up by 10%? Ans: Quantity demanded would go down by 6.9% 6) If demand is perfectly inelastic and supply increases, what will happen to price and quantity? Ans: Price decreases and quantity stays the same.
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7) If demand is perfectly elastic and supply increases, what will happen to price and quantity? Ans: Price stays the same and quantity increases. 8) Which of the following is NOT of the 4 determinants of price elasticity of demand?
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