201-tutorial-3 - Econ 201 Tutorial #3 Date: Week of Jan....

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Econ 201 Tutorial #3 Date: Week of Jan. 30-Feb.5 Coverage: Chapter 4 Elasticity I. Multiple Choice Questions: 1. Suppose that the demand for widgets is price inelastic. We know that the numerical value for the price elasticity coefficient is: A) greater than one. B) equal to one. C) greater than zero but less than one. D) less than zero. 2. The demand for a product is elastic when: A) a fall in the price of the product causes total expenditures by consumers on the product to fall. B) the percentage change in quantity demanded equals the percentage change in price. C) total expenditures by consumers for the product increase when the product's price falls. D) a fall in the price of the product does not affect the firm's revenue. 3. All of the following statements are incorrect except: A) demand is more elastic in the short run than in the long run. B) the time period available for adjustment to changes in a good's price does not affect the elasticity of demand for the good. C) the longer the time period consumers have to adjust to price changes, the more elastic will be demand. D) the long-run demand curve for a good is steeper than the good's short-run demand curve. 4. If the percentage increase in quantity demanded of good X is larger than the percentage decrease in the price of good Y, the cross-price elasticity is: A) greater than zero but less than one. B)
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201-tutorial-3 - Econ 201 Tutorial #3 Date: Week of Jan....

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