Chapter 5 ACTUAL QUIZ - Chapter 5 Quiz Name Thomas Ronan...

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Chapter 5 Quiz Name: Thomas Ronan Start time: July 13, 2009 11:51am Number of questions: 20 Finish Help Question 1 (1.25 points) The price elasticity of demand is a measure of a. how much a change in demand affects the equilibrium price. b . buyers' responsiveness to changes in the price of a product. c. the equilibrium price of a product. d . the amount of a product purchased when income increases. e. whether a product is a substitute or a complement. Save answer Question 2 (1.25 points) If the price elasticity of demand for razors is 0.32, the demand for razors is a. inelastic. b . unit elastic. c. perfectly elastic. d . elastic. e. perfectly inelastic. Save answer Question 3 (1.25 points) The demand for a good is more elastic if the a. supply of the good is plentiful. b . good is narrowly defined. c. good has few substitutes. d . good is a necessity. e. Both answers B and C are correct. Save answer
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Question 4 (1.25 points) One reason why the demand for gasoline is inelastic is because a. substitutes for gas abound. b . people have a long time to shop around for automobiles that use less gas. c. gasoline is a luxury item. d . buses run on diesel fuel rather than gasoline. e. substitutes for gas are hard to find. Save answer Question 5 (1.25 points) We calculate the price elasticity of demand as the a. ratio of the percentage change in the quantity demanded to the percentage change in price. b . percentage change in the quantity demanded divided by the percentage change in income. c. ratio of the percentage change in the price to the percentage change in quantity.
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