elasticity sheet answers.pdf - Sheet Elasticity Dr sameh...

Dr sameh khalil
Sheet Elasticity
1) A straight-line demand curve with negative slope intersects the horizontal axis
at 100 tons per week. At the midpoint on the demand curve (corresponding to 50
tons per week) the price elasticity of demand is
A) 0.
B) 0.5.
C) 1.0.
D) greater than 1.0.
2) Which of the following statements is FALSE?
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3) Along a straight-line demand curve, as the price falls the
4) The price elasticity of demand ____ in value when moving downward along a
___ line demand curve.
5) The elasticity of demand along a straight line, negatively sloped, demand curve
is
A) always equal to 1.0.
B) infinite.
C) changes continuously moving along the demand curve.
D) equal to 0.
6) If the demand curve for a good is a downward sloping straight line, the demand
for the good will be more price elastic the higher is the
7) If the demand curve for a good is a downward sloping straight line, then at
which of the following prices is demand most elastic?
8) Demand is inelastic if

Dr sameh khalil
Sheet Elasticity
D) the smaller angle between the vertical axis and the demand curve is less than 45
degrees.
9) Demand is unit elastic when
A) the slope of the demand curve is –1.
B) a shift of the supply curve leads to no change in price.
C) a shift of the supply curve leads to an equal shift of the demand curve.
D) a change in the price of the product leads to no change in the total revenue.
10) Producers’ total revenue will decrease if
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