6115pq3 - Practice Quiz Chapter 3 1. The coefficient of...

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Practice Quiz – Chapter 3 1. The coefficient of demand elasticity, E , a. is the percentage change in the price of the good divided by the percentage change in the quantity demanded. b. measures the responsiveness of quantity demanded to changes in the price of the good. c. describes how the firm's total cost changes as price changes. d. both a and b 2. The Interior Department recently announced that it will increase the entrance fees at Yellowstone National Park in order to increase park revenues. The Interior Department must believe that a. park goers are very responsive to price changes. b. the demand for park services is elastic. c. the percentage increase in fees will be greater than the percentage decrease in the number of park visitors. d. demand is unitary elastic, and thus the number of visitors will NOT decrease. 3 If the demand for umbrellas is price inelastic, a. changes in price do not affect the number of umbrellas demanded. b.
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This note was uploaded on 09/18/2011 for the course ECO 6115 taught by Professor Staff during the Spring '08 term at University of Central Florida.

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6115pq3 - Practice Quiz Chapter 3 1. The coefficient of...

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