Quiz203 - Name Class Date ID A Quiz 3 Multiple Choice Identify the letter of the choice that best completes the statement or answers the question 1

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Name: ________________________ Class: ___________________ Date: __________ ID: A 1 Quiz 3 Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. ____ 1. For a good that is a necessity, a. quantity demanded tends to respond substantially to a change in price. b. demand tends to be inelastic. c. the law of demand often does not apply. d. All of the above are correct. ____ 2. The demand for Werthers candy is likely a. elastic because candy is expensive relative to other snacks. b. elastic because there are many close substitutes for Werthers. c. elastic because Werthers are regarded as a necessity by many people. d. inelastic because it is usually eaten quickly, making the relevant time horizon short. ____ 3. Suppose the price of Twinkies decreases from $1.45 to $1.25 and, as a result, the quantity of Twinkies demanded increases from 2,000 to 2,200. Using the midpoint method, the price elasticity of demand for Twinkies in the given price range is
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This note was uploaded on 05/16/2010 for the course ECO BA 521 taught by Professor Dr.bridges during the Spring '10 term at Andrew Jackson.

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Quiz203 - Name Class Date ID A Quiz 3 Multiple Choice Identify the letter of the choice that best completes the statement or answers the question 1

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