Dif 1 ref 5 1 nat analytic loc elasticity top

DIF: 1 REF: 5-1
NAT: Analytic LOC: Elasticity TOP: Inelastic demand
MSC: Definitional
83. Demand is said to be inelastic if the
a. quantity demanded changes proportionately more than price.
b. price changes proportionately more than income.
c. quantity demanded changes proportionately less than price.
d. quantity demanded changes proportionately the same as price.
ANS: C DIF: 2 REF: 5-1
NAT: Analytic LOC: Elasticity TOP: Inelastic demand
MSC: Definitional
84. If the price elasticity of demand is 1.5, regardless of which two points on the demand curve are used
to compute the elasticity, then
DIF: 3 REF: 5-1
NAT: Analytic LOC: Elasticity TOP: Price elasticity of demand
MSC: Applicative
Table 5-3
The following table shows the demand schedule for a particular good.
Price Quantity
$15 0
$12 5
$9 10
$6 15
$3 20
$0 25
85. Refer to Table 5-3. Using the midpoint method, what is the price elasticity of demand when price
rises from $9 to $12?
DIF: 2 REF: 5-1
NAT: Analytic LOC: Elasticity TOP: Midpoint method | Price elasticity of demand
MSC: Analytical
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315  Chapter 5 /Elasticity and Its Application
86. Refer to Table 5-3. Using the midpoint method, when price rises from $6 to $9, the price elasticity
of demand is
DIF: 2 REF: 5-1
NAT: Analytic LOC: Elasticity TOP: Midpoint method | Price elasticity of demand
MSC: Analytical
87. Refer to Table 5-3. Using the midpoint method, when price falls from $6 to $3, the price elasticity
of demand is
a. 0.43
b. 0.67
c. 1.50
d. 2.33
ANS: A