assign 3 - 1. Demand is said to be elastic if Student...

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1. Demand is said to be elastic if Student Response 1 . the quantity demanded responds substantially to changes in the price of the good. 2. buyers do not respond much to changes in the price of the good. 3. demand shifts substantially when the price of the good changes. 4. the price of the good responds substantially to changes in demand. Score: 1/1 2. If a good is a necessity, demand for the good would tend to be Student Response 1. inelastic. 2. unit elastic. 3 . elastic. 4. horizontal. Score: 0/1 3. If a person only occasionally enjoys a cup of coffee, his demand for coffee would be Student Response 1. unit elastic. 2. inelastic. 3. elastic. 4. horizontal.
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Score: 0/1 4. When the price of bubble gum is $0.50, the quantity demanded is 400 packs per day. When the price fal the demand for bubble gum is Student Response 1. perfectly inelastic. 2. inelastic. 3 . elastic. 4. unit elastic. Score: 1/1 5. Suppose the price of Twinkies is reduced from $1.45 to $1.25 and, as a result, the quantity of Twinkies d given price range is Student Response 1. 1.00. 2. 1.55. 3. 2.00. 4 . .64. Score: 1/1 6. If the price elasticity of demand for a good is 4.0, then a 10 percent increase in price would result in a Student Response 1. 4.0 percent decrease in the quantity demanded.
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Student Response 2. 400 percent decrease in the quantity demanded.
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This note was uploaded on 11/08/2011 for the course ECON 1B03 taught by Professor Hannahholmes during the Fall '08 term at McMaster University.

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assign 3 - 1. Demand is said to be elastic if Student...

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