This quiz works best with JavaScript enabled. Home > Economics > Microeconomics > Elasticity Of Demand And Supply > Elasticity Of Demand And Supply – Quiz 4 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Elasticity Of Demand And Supply Quiz 4 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Explain the concept of determinants of elasticity. A) Factors that determine the inelasticity of demand or supply for a specific good or service. B) Factors that influence the elasticity of demand or supply for a particular good or service. C) Determinants that determine the elasticity of demand or supply for a specific item. D) Variables that affect the elasticity of demand or supply for a specific product. Show Answer Correct Answer: B) Factors that influence the elasticity of demand or supply for a particular good or service. 2. "The percentage change in quantity demanded divided by the percentage change in price" A) Dcurb. B) Price elasticity of demand. C) Price elasticity of supply. D) Elasticity. Show Answer Correct Answer: B) Price elasticity of demand. 3. If the price of a good decreases from $ 9 to $ 6 and the quantity supplied decreases from 1, 500 to 1, 300, at the midpoint between these two prices the elasticity of supply equals A) 0.20. B) 2.80. C) 0.36. D) 0.40. Show Answer Correct Answer: C) 0.36. 4. A supply curve that is linear and parallel to the quantity axis has a value of elasticity that is ..... A) Equal to zero. B) Infinity. C) Less than one. D) One. Show Answer Correct Answer: B) Infinity. 5. During the COVID 19 Pandemic we are all experiencing now, and the information campaign from the Center for Disease Control highlighting that bacteria and other organisms cause and spread disease, will the demand curve for soap be more elastic or more inelastic? A) More elastic. B) More inelastic. Show Answer Correct Answer: B) More inelastic. 6. The cross-price elasticity of demand measures how the quantity demanded of a good is related to the. A) Cost of production. B) Consumer's income. C) Price of another good. D) Price of raw materials. Show Answer Correct Answer: C) Price of another good. 7. A mother who buys her son two sets of school uniforms every year regardless of changes in their prices has a perfectly inelastic demand for school uniforms A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 8. Zero price elasticity of supply means? A) The supply curve will be horizontal. B) The goods cannot be produce. C) Cause a smaller percentage change in the quantity supplied. D) The supply curve will be vertical. Show Answer Correct Answer: D) The supply curve will be vertical. 9. The price of goods Z increases from RM200 to RM300, the quantity supplied increases from 100 units to 180 units. Find the value of price elasticity of supply for goods Z. A) 1.6. B) 0.63. C) 0.4. D) 2.5. Show Answer Correct Answer: A) 1.6. 10. How do you calculate income elasticity of demand? A) By adding the percentage change in quantity demanded to the percentage change in income. B) By multiplying the percentage change in quantity demanded by the percentage change in income. C) By subtracting the percentage change in quantity demanded from the percentage change in income. D) By dividing the percentage change in quantity demanded by the percentage change in income. Show Answer Correct Answer: D) By dividing the percentage change in quantity demanded by the percentage change in income. 11. When the price of a product increases from $ 35 to $ 45, the quantity supplied increases from 30 units to 40 units per week. Then, at the midpoint between these two prices, the price elasticity of supply is A) 0.05. B) -1.15. C) 1.14. D) 1.35. Show Answer Correct Answer: C) 1.14. 12. Products that can be used in a place of other products A) Substitutes. B) Goods. C) Substitution effect. D) None of above. Show Answer Correct Answer: A) Substitutes. 13. What are the factors that affect cross elasticity of demand? A) Availability of substitute goods, degree of necessity or luxury, and time period. B) Product quality, brand reputation, and distribution channels. C) Market competition, consumer preferences, and government regulations. D) Price of the product, consumer income, and advertising. Show Answer Correct Answer: A) Availability of substitute goods, degree of necessity or luxury, and time period. 14. What is income elasticity of demand? A) Income elasticity of demand is a measure of how much the quantity demanded of a good responds to a change in consumer income. B) Income elasticity of demand is a measure of how much the quantity demanded of a good responds to a change in population. C) Income elasticity of demand is a measure of how much the quantity demanded of a good responds to a change in government policies. D) Income elasticity of demand measures the price change of a good in response to consumer income. Show Answer Correct Answer: A) Income elasticity of demand is a measure of how much the quantity demanded of a good responds to a change in consumer income. 15. If the price elasticity of demand for a good is zero, this means that the goods A) Will still be in demand when there is an increase in price. B) Will be purchased in the same quantity at any price level. C) Will not be in demand when there is an increase in price. D) Will be purchased in smaller quantities when there is an increase in price. Show Answer Correct Answer: B) Will be purchased in the same quantity at any price level. 16. Describe your demand for a product if you buy the same amount of it or just a small amount less after a large price increase. A) Elastic. B) Unitary elastic. C) Inelastic. D) Hyperelastic. Show Answer Correct Answer: C) Inelastic. 17. Suppose a decrease in demand causes the price to decrease from $ 4 to $ 3 and the quantity to decrease from 1, 000 to 700. Then, at the midpoint between these two prices, the elasticity of supply equals A) 0.81. B) 2.83. C) 0.18. D) 1.24. Show Answer Correct Answer: D) 1.24. 18. The demand for Cheerios cereal is more price-elastic than the demand for cereals as a whole. This is best explained by the fact that: A) Cheerios are a luxury. B) There are more substitutes for Cheerios than for cereals as a whole. C) Cereals are a necessity. D) Consumption of cereals as a whole is greater than consumption of Cheerios. Show Answer Correct Answer: B) There are more substitutes for Cheerios than for cereals as a whole. 19. Suppose the current price of barley is $ 7 per bushel and at that price 100, 000 bushels are grown by a Colorado farmer. If the price of barley rises to $ 8 and quantity supplied increases to 130, 000 bushels, then at the midpoint between these two prices, the price elasticity of supply for barley equals A) 13.33. B) 1.96. C) 0.51. D) 26.78. Show Answer Correct Answer: B) 1.96. 20. After more employers allow employees to telecommute, will the demand curve for cars be more elastic or more inelastic? A) More elastic. B) More inelastic. Show Answer Correct Answer: A) More elastic. ← PreviousNext →Related QuizzesMicroeconomics QuizzesEconomics QuizzesElasticity Of Demand And Supply Quiz 1Elasticity Of Demand And Supply Quiz 2Elasticity Of Demand And Supply Quiz 3Elasticity 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