In considering the relationships between price and

Question 5 of 20
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In considering the relationships between price and quantity demanded, ceteris paribus directs the
economist to assume that __________ .

A. price increases affect quantity

B. quantity increases affect prices

C. neither price nor quantity affect demand

D. all other variables remain unchanged
Question 6 of 20
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Suppose that in a month the price of oranges increases from $.75 to $1. At the same time, the
quantity of oranges demanded decreases from 100 to 80. The price elasticity of demand for
oranges (calculated using the initial value formula) is __________ .

Question 7 of 20
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At Tony's Restaurant, the quantity of large pizzas sold is 200 at the unit price $15. Suppose the
price elasticity of demand for pizzas by the initial value method is 1.5, and you would like to
increase the quantity sold to 250. Then the new price must be __________ .

Question 8 of 20
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The price elasticity of demand reflects the responsiveness of __________ .
Question 9 of 20
5.0/ 5.0 Points
The price of apples increases from $1 to $1.10. At the same time, the quantity of apples

demanded decreases from 100 to 90. The price elasticity of demand for apples (calculated using
the initial value formula) is __________ .

A. 0.02

B. 0.9

C. 1

D. 1.1