For a certain good when price falls from 20 to 19

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Macroeconomics for Today
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Chapter 3 / Exercise 23
Macroeconomics for Today
Tucker
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17.For a certain good, when price falls from $20 to $19, quantity demanded rises from 5,000 to 5,700. The price elasticity of demand here isa.2.55.b.0.66.c.0.39.d.0.20..ANS: A
PTS:1DIF:ModerateNAT:AnalyticLOC: ElasticityNOT: NEW18.For a certain good, when price rises from $90 to $98, quantity demanded falls from 90,000 to 86,000. The price elasticity of demand here is
PTS:1DIF:ModerateNAT:AnalyticLOC: ElasticityNOT: NEW19.The fewer substitutes for a good,
PTS:1DIF:ModerateNAT:AnalyticLOC: Elasticity20.The price elasticity of demand is lowest for which of the following goods?
PTS:1DIF:ModerateNAT:AnalyticLOC: Elasticity21.Which of the following statements is false?a.Ham has a higher price elasticity of demand than meat.b.Peaches have a higher price elasticity of demand than fruit.c.Soap has a higher price elasticity of demand than Ivory Soap.d.Carrots have a higher price elasticity of demand than vegetables.ANS: C
PTS:1DIF:ModerateNAT:AnalyticLOC: Elasticity22.Vernon spends the following percentages of his budget on the following goods: 23 percent on good A, 11 percent on good B, 1 percent on good C, and 3 percent on good D. For which good is price elasticity of demand the highest, ceteris paribus?
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Macroeconomics for Today
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Chapter 3 / Exercise 23
Macroeconomics for Today
Tucker
Expert Verified
PTS:1DIF:ModerateNAT:AnalyticLOC: Elasticity23.A good will tend to have a low price elasticity of demand if
PTS:1DIF:ModerateNAT:AnalyticLOC: Elasticity24.The shorter the period of time consumers have to adjust to price changes, the __________ the __________ elasticity of demand.
PTS:1DIF:ModerateNAT:AnalyticLOC: Elasticity25.The longer the period of time consumers have to adjust to price changes, the __________ the __________ elasticity of demand.a.lower, priceb.lower, incomec.higher, priced.higher, incomeANS: C
PTS:1DIF:ModerateNAT:AnalyticLOC: Elasticity

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