B inelastic C elastic D unitarily elastic Answer A Diff 2 Type D 14 If the

B inelastic c elastic d unitarily elastic answer a

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B) inelastic. C) elastic. D) unitarily elastic. Answer: A Diff: 2 Type: D 14) If the demand for oranges is unitarily elastic, the price elasticity of demand for oranges is A) 0.0. B) 1.0. C) -1.0. D) -100.0. Answer: C Diff: 2 Type: A Refer to the information provided in Figure 5.2 below to answer the questions that follow. 8
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Figure 5.2 15) Refer to Figure 5.2. Using the midpoint formula, if the price of a hamburger is increased from $8 to $10, the price elasticity of demand equals A) 0.36. B) 333. C) -2.5. D) -3.0. Answer: D Diff: 2 Type: A 9
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16) Refer to Figure 5.2. Using the midpoint formula, if the price of a hamburger is increased from $6 to $8, the price elasticity of demand equals A) 0.24. B) 71.0. C) -1.4. D) -2.0. Answer: C Diff: 2 Type: A 17) Refer to Figure 5.2. Using the midpoint formula, if the price of a hamburger is increased from $2 to $4, the price elasticity of demand equals A) -0.33. B) -2.0. C) -3.0. D) -5.0. Answer: A Diff: 2 Type: A 18) Refer to Figure 5.2. At Point C the price elasticity of demand is -1. Along line segment BC of the demand curve, the demand is A) elastic. B) 10
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unitarily elastic. C) inelastic. D) either elastic or inelastic, depending on whether price increases or decreases. Answer: A Diff: 2 Type: D Refer to the information provided in Figure 5.3 below to answer the questions that follow. Figure 5.3 11
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19) Refer to Figure 5.3. Using the midpoint formula, if the price of a gardenburger is increased from $8 to $10, the price elasticity of demand equals A) -0.036. B) -0.5. C) -4.5. D) -9.0. Answer: C Diff: 2 Type: A 20) Refer to Figure 5.3. Using the midpoint formula, if the price of a gardenburger is increased from $6 to $8, the price elasticity of demand equals A) -0.024. B) -1.75. C) -1.9. D) -2.0. Answer: B Diff: 2 Type: A 21) Refer to Figure 5.3. Using the midpoint formula, if the price of a gardenburger is increased from $6 to $7, the price elasticity of demand equals A) -.13. B) 12
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-.33. C) -1.44. D) -13. Answer: C Diff: 2 Type: A 22) The owner of a local hot dog stand has estimated that if he lowers the price of hot dogs from $2.00 to $1.50, he will increase sales from 400 to 500 hot dogs per day. Using the midpoint formula, the demand for hot dogs is A) elastic. B) inelastic. C) unitarily elastic. D) perfectly elastic. Answer: B Diff: 2 Type: D 13
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23) At a price of $11, quantity demanded is 90; and at a price of $9, quantity demanded is 110. Using the midpoint formula, the price elasticity of demand is A) 0.0. B) 82. C) -1.0. D) -1.22. Answer: C Diff: 2 Type: A 24) At a price of $20, a store can sell 24 picture frames a day. At a price of $18 the store can sell 33 picture frames a day. Using the midpoint formula, the price elasticity of demand is A) 0.33. B) 9.09. C) -3.0. D) 3.75. Answer: C Diff: 2 Type: A 25) Price and total revenue are inversely related when demand is A) elastic. B) inelastic. 14
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C) unitarily elastic. D) perfectly inelastic. Answer: A Diff: 1 Type: F 26) If price _______ and demand is ________, total revenue will increase. A) falls; inelastic. B) falls; elastic C) rises; elastic D) rises; unitarily elastic Answer: B Diff: 1 Type: F 15
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Refer to the information provided in Figure 5.4 below to answer the questions that follow.
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