This quiz works best with JavaScript enabled. Home > Economics > Microeconomics > Elasticity Of Demand And Supply > Elasticity Of Demand And Supply – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Elasticity Of Demand And Supply Quiz 2 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The price elasticity of demand for goods or services measures the change in quantity demanded in response to change in price. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 2. What does a perfectly vertical supply curve indicate? A) Quantity supplied increases with price. B) Quantity supplied remains constant. C) Quantity supplied decreases with price. D) Quantity supplied is unpredictable. Show Answer Correct Answer: B) Quantity supplied remains constant. 3. What is cross elasticity of demand? A) Measure of the responsiveness of the quantity demanded of one good to a change in the price of another good. B) The amount of elasticity in a cross-shaped demand curve. C) The ratio of demand for two unrelated goods. D) The measure of demand for a product in different countries. Show Answer Correct Answer: A) Measure of the responsiveness of the quantity demanded of one good to a change in the price of another good. 4. Complementary goods have: A) The same elasticities of demand. B) Very low price elasticities of demand. C) Negative cross price elasticities of demand with respect to each other. D) Positive cross elasticities of demand.with respect to each other. Show Answer Correct Answer: C) Negative cross price elasticities of demand with respect to each other. 5. If the price of a DVD falls from $ 20 to $ 12 and the quantity of DVDs supplied decreases from 118, 000 per hour to 100, 000 per hour, at the midpoint between these two prices the elasticity of supply equals A) 2.94. B) 0.33. C) 2.98. D) 1.56. Show Answer Correct Answer: B) 0.33. 6. A 3% increase in the price of tea causes a 6% increase in the demand for coffee. The cross elasticity of demand for coffee with respect to the price of tea is ..... A) -0.5. B) +0.5. C) -2.0. D) +2.0. Show Answer Correct Answer: D) +2.0. 7. True or False The elasticity of demand can be said to be Unitary if its percentage is equal to zero (0) A) Tama. B) Mali. Show Answer Correct Answer: B) Mali. 8. If the price of a product doubled and in response the quantity supplied also doubled then the PES is equal to A) 1. B) -1. C) 2. D) O. Show Answer Correct Answer: A) 1. 9. A supply curve that is a perfectly vertical line is indicative of A) Perfectly elastic supply. B) Perfectly inelastic supply. C) Elastic supply. D) Unitary elastic supply. Show Answer Correct Answer: B) Perfectly inelastic supply. 10. If the income elasticity of demand for a good is greater than 0 but less than 1, then the good is ..... A) An economic necessity. B) An economic luxury. C) Provided by a monopoly producer. D) Provider by a competitive producer. Show Answer Correct Answer: A) An economic necessity. 11. "The percentage change in quantity supplied divided by the percentage change in price" A) Price elasticity of supply. B) Price elasticity of product. C) Love it uno k skin. D) Price elasticity of demand. Show Answer Correct Answer: A) Price elasticity of supply. 12. If the price elasticity of demand for a good is zero, this means that the good ..... A) Will still be in demand when there is an increase in price. B) Will not be in demand when there is an increase in price. C) Will be purchased in smaller quantities when there is an increase price. D) Will be purchased in the same quantity at any price level. Show Answer Correct Answer: D) Will be purchased in the same quantity at any price level. 13. Based on a survey, the income elasticity of demand for the iPad Mini is 1.4. This shows that the iPad Mini A) Is a normal goods. B) Is a luxury goods. C) Is a substitutes goods. D) Is a necessity goods. Show Answer Correct Answer: B) Is a luxury goods. 14. Cross Price Elasticity of Demand (Ex) A) Measure the responsiveness or sensitivity of quantity demanded (consumers) due to a change in the price of a product. B) Measure the responsiveness or sensitivity of changes in the quantity demanded of a product due to a change in the income. C) Measure the responsiveness or sensitivity of quantity demanded of a product due to a change in the price of a related product. D) Measure the responsiveness or sensitivity of quantity supplied due to a change in the price of a product/service. Show Answer Correct Answer: C) Measure the responsiveness or sensitivity of quantity demanded of a product due to a change in the price of a related product. 15. Price elasticity of supply for goods in the ratio between ..... A) Change in quantity supply and changes in price. B) Change in price and changes in supply quantity. C) Change in percentage of supply quantity with changes in percentage of good price. D) Change in price and changes in percentage in supply quantity. Show Answer Correct Answer: C) Change in percentage of supply quantity with changes in percentage of good price. 16. After the invention of nuclear power plants, will the demand curve for coal power plants be more elastic or more inelastic? A) More elastic. B) More inelastic. Show Answer Correct Answer: A) More elastic. 17. The supply of agricultural goods is A) Relatively inelastic while the supply of manufactured goods is relatively elastic. B) Relatively elastic while the supply of manufactured goods is relatively inelastic. Show Answer Correct Answer: A) Relatively inelastic while the supply of manufactured goods is relatively elastic. 18. If the price elasticity of supply for Goods J is equal to 0.6, a large change in price will cause ..... A) Large changes in quantity supplied. B) Quantity supplied becomes infinity.ll. C) Small changes in quantity supplied. D) No changes in quantity supplied. Show Answer Correct Answer: C) Small changes in quantity supplied. 19. If the quantity supplied and the price change by the same percentage, then supply is A) Elastic. B) Inelastic. C) Unit elastic. D) Perfectly inelastic. Show Answer Correct Answer: C) Unit elastic. 20. The price elasticity of demand indicates, ..... A) Buyer responsiveness to price change. B) Buyer not responsiveness to price change. C) The slope of demand curve. D) How far business executive can stretch their fixed cost. Show Answer Correct Answer: A) Buyer responsiveness to price change. ← PreviousNext →Related QuizzesMicroeconomics QuizzesEconomics QuizzesElasticity Of Demand And Supply Quiz 1Elasticity Of Demand And Supply Quiz 3Elasticity Of Demand And Supply Quiz 4Elasticity Of Demand And Supply Quiz 5Elasticity Of Demand And Supply Quiz 6Elasticity Of Demand And Supply Quiz 7 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books