# Layton4e_EV_ch05 - Chapter 5Elasticity of demand and supply...

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Chapter 3 / Exercise 3
Applied Calculus
Berresford/Rockett
Expert Verified
Chapter 5â€”Elasticity of demand and supply MULTIPLE CHOICE Price elasticity of demand 1. Price elasticity of demand measures: A. the responsiveness of the quantity demanded of a good to a change in income. B. the responsiveness of the quantity demanded of a good to a change in consumersâ€™ prefer- ences. C. the responsiveness of the quantity demanded of a good to a change in price. D. the reduction in the quantity demanded of a good when the price is reduced. ANS: C PTS: 1 DIF: Moderate REF: Price elasticity of demand
OBJ: TYPE: SA TOP: Price elasticity of demand 2. Price elasticity of demand can be: PTS: 1 DIF: Moderate REF: Price elasticity of demand
OBJ: TYPE: RE TOP: Price elasticity of demand 3. Using the midpoint formula, what would be the price elasticity of demand for a gallbladder operation if the number of operations fell from 7000 to 4000 per week after its price increased from \$6000 to \$15 000? PTS: 1 DIF: Moderate REF: Price elasticity of demand
OBJ: TYPE: SA TOP: Price elasticity of demand 4. Suppose the price of a bus ticket rises from \$2.75 to \$3 and the number of tickets sold falls from 10 000 to 8500, the price elasticity of demand is: PTS: 1 DIF: Moderate REF: Price elasticity of demand
OBJ: TYPE: RE TOP: Price elasticity of demand 5. Suppose the price of a bus ticket rises from \$2.75 to \$3.75 and the number of tickets sold falls from 10 000 to 8500, the price elasticity of demand is: : A. 0.527. B. 1. C. -0.527. D. -1.
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Chapter 3 / Exercise 3
Applied Calculus
Berresford/Rockett
Expert Verified
ANS: A PTS: 1 DIF: Moderate REF: Price elasticity of demand
OBJ: TYPE: SA TOP: Price elasticity of demand 6. Suppose the price of a bus ticket rises from \$2.75 to \$3 and the number of tickets sold falls from 10 000 to 8500, the total revenue test: PTS: 1 DIF: Moderate REF: Price elasticity of demand
OBJ: TYPE: SA TOP: Price elasticity of demand 7. The price elasticity of demand for a vertical demand curve is: PTS: 1 DIF: Moderate REF: Price elasticity of demand
OBJ: TYPE: RE TOP: Price elasticity of demand