This quiz works best with JavaScript enabled. Home > Economics > Microeconomics > Elasticity Of Demand And Supply > Elasticity Of Demand And Supply – Quiz 3 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Elasticity Of Demand And Supply Quiz 3 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. If the supply curve of a product is vertical, PES is equal to A) 0. B) 1. C) -1. D) Infinity. Show Answer Correct Answer: A) 0. 2. The quantity of peanuts supplied increased from 40 tons/week to 60 tons/week when the price of peanuts increased from $ 4/ton to $ 5/ton. The price elasticity of supply for peanuts over this price range is: A) Elastic. B) Inelastic. C) Unit Elastic. D) Perfectly Inelastic. Show Answer Correct Answer: A) Elastic. 3. If the price elasticity of supply (PES) is equal to 0, how would you describe the supply of a product? A) Perfectly elastic. B) Elastic. C) Inelastic. D) Perfectly inelastic. Show Answer Correct Answer: D) Perfectly inelastic. 4. How is price elasticity of supply calculated? A) Total change in quantity supplied divided by total change in price. B) Percentage change in price divided by percentage change in quantity supplied. C) Percentage change in quantity supplied divided by percentage change in price. D) Percentage change in quantity supplied multiplied by percentage change in price. Show Answer Correct Answer: C) Percentage change in quantity supplied divided by percentage change in price. 5. The price elasticity of demand for the vertical demand curve is A) Unitary elastic. B) Perfectly elastic. C) Inelastic. D) Perfectly inelastic. Show Answer Correct Answer: D) Perfectly inelastic. 6. When the % change in price is greater than the % change in quantity supplied, then supply is said to be: A) Elastic. B) Inelastic. C) Unitary. D) Perfectly elastic. Show Answer Correct Answer: B) Inelastic. 7. What is price elasticity of demand? A) Price elasticity of demand is a measure of the responsiveness of the quantity demanded of a good or service to a change in its quality. B) Price elasticity of demand is a measure of the responsiveness of the quantity demanded of a good or service to a change in its price. C) Price elasticity of demand is a measure of the responsiveness of the quantity supplied of a good or service to a change in its price. D) Price elasticity of demand is a measure of the responsiveness of the quantity demanded of a good or service to a change in its income. Show Answer Correct Answer: B) Price elasticity of demand is a measure of the responsiveness of the quantity demanded of a good or service to a change in its price. 8. Demand for agricultural products is ..... A) Elastic. B) Unitary elastic. C) Inelastic. D) Perfectly elastic. Show Answer Correct Answer: C) Inelastic. 9. This formula if for A) Price Elasticity of Demand. B) Price Elasticity of Supply. C) Income Elasticity of Demand. D) Cross Price Elasticity of demand. Show Answer Correct Answer: A) Price Elasticity of Demand. 10. The price elasticity of demand measure the ..... A) Adaptability of suppliers when a change in demand alters the price of a good. B) Responsiveness of quantity demanded to a change in a good's price. C) Responsiveness of a good's price to a change in quantity demanded. D) Responsiveness of quantity supplied to a change in quantity demanded. Show Answer Correct Answer: B) Responsiveness of quantity demanded to a change in a good's price. 11. How does elasticity affect potential revenue for a firm? A) If demand for a good is inelastic, lowering the price could raise revenue. B) If demand for a good is inelastic, raising the price could reduce revenue. C) If demand for a good is elastic, raising the price must increase revenue. D) If demand for a good is elastic, raising the price could reduce revenue. Show Answer Correct Answer: D) If demand for a good is elastic, raising the price could reduce revenue. 12. If the price elasticity of demand (PED) is greater than 1, how would you describe the demand for a product? A) Elastic. B) Inelastic. C) Unitary elastic. D) Perfectly elastic. Show Answer Correct Answer: A) Elastic. 13. Elasticity of supply is ..... A) Measures the responsiveness of the quantity supplied due to a change in the price of a goods. B) Measure the responsiveness of quantity demanded due to a change in its price. C) Measure the responsiveness of quantity supplied of goods X due to change in the price of a goods Y. D) Measure the responsiveness of quantity demanded of goods X due to change in the price of a goods Y. Show Answer Correct Answer: A) Measures the responsiveness of the quantity supplied due to a change in the price of a goods. 14. If the price of demand for a good is-1.8, the demand for the good can be described as ..... A) Perfectly elastic. B) Elastic. C) Unitary elastic. D) Inelastic. Show Answer Correct Answer: B) Elastic. 15. $Es\ =\frac{%\Delta Q}{%\Delta P}$ A) 0.438%. B) 0.374%. Show Answer Correct Answer: A) 0.438%. 16. When the price of Goods X increases, the demand for Goods Y increases, while the demand for Goods C decreases. What is the relationship between Goods X, Y and Z? A) Goods X is substitute goods for Y and complementary goods for Z. B) Goods X is complementary goods for Y and substitute goods for Z. C) Goods X is a substitute for both Y and Z. D) Goods X is complementary goods for both Y and Z. Show Answer Correct Answer: A) Goods X is substitute goods for Y and complementary goods for Z. 17. Price elasticity of supply for goods is the ratio between A) Change in percentage of supply quantity with changes in the percentage of goods price. B) Change in price and changes in percentage in supply quantity. C) Change in price and changes in supply quantity. D) Change in quantity supply and changes in price. Show Answer Correct Answer: A) Change in percentage of supply quantity with changes in the percentage of goods price. 18. The following of the statements about price elasticity of demand, which is true? A) Price elasticity of demand for goods is higher in the long term compared to the short term. B) Price elasticity of demand for goods is higher in the short term compared to the long term. C) Price elasticity of demand for goods is the same in the short term or long term. D) A goods needs to have a price elasticity of demand higher than status symbol goods. Show Answer Correct Answer: A) Price elasticity of demand for goods is higher in the long term compared to the short term. 19. If the price elasticity of supply for a good is 10, then supply is A) Elastic. B) Inelastic. C) Perfectly inelastic. D) Perfectly elastic. Show Answer Correct Answer: A) Elastic. 20. The price of goods A increases from RM200 to RM300, the quantity supplied increases from 100 units to 180 units. Compute the price elasticity of supply for goods A A) 1.6. B) 0.42. C) 0.89. D) 1.2. Show Answer Correct Answer: A) 1.6. ← PreviousNext →Related QuizzesMicroeconomics QuizzesEconomics QuizzesElasticity Of Demand And Supply Quiz 1Elasticity Of Demand And Supply Quiz 2Elasticity 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