This quiz works best with JavaScript enabled. Home > Economics > Microeconomics > Elasticity Of Demand And Supply > Elasticity Of Demand And Supply – Quiz 5 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Elasticity Of Demand And Supply Quiz 5 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. "The amount of some product that producers are willing and able to sell at a given price, all other factors being held constant" A) That's why I want to squat. B) Demand. C) Elasticity. D) Supply. Show Answer Correct Answer: D) Supply. 2. Jess owns a sandwich shop. The price of a sandwich recently increased from $ 5 to $ 7. Jess responded by increasing the quantity of sandwiches she supplied from 70 to 90 per day. Then, at the midpoint between these two prices, Jess's price elasticity of supply is equal to A) 1.33. B) 0.75. C) 3.00. D) 1.50. Show Answer Correct Answer: B) 0.75. 3. A normal goods can be distinguished from an inferior goods because a normal good has ..... A) A positive income elasticity of demand. B) A positive price elasticity of demand. C) A positive cross elasticity of demand. D) A negative income elasticity of demand. Show Answer Correct Answer: A) A positive income elasticity of demand. 4. If the income elasticity of demand (YED) for a product is positive and greater than 1, it suggests that the product is: A) A luxury good. B) An inferior good. Show Answer Correct Answer: A) A luxury good. 5. Price Elasticity of Supply 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: D) Measure the responsiveness or sensitivity of quantity supplied due to a change in the price of a product/service. 6. The amount that consumers spend on a product at a particular price A) Marginal utility. B) Demand. C) Total expenditures. D) None of above. Show Answer Correct Answer: C) Total expenditures. 7. Based on survey, the income elasticity of demand for the iPad Mini is 1.4. This shows the iPad Mini ..... A) Is a luxury goods. B) Is a normal goods. C) Had no price elasticity. D) None of the above. Show Answer Correct Answer: A) Is a luxury goods. 8. The mining boom in created a shortage of labour in the hospitality industry in WA. This made the supply of restaurant meals in WA A) Perfectly inelastic. B) More elastic. C) Perfectly elastic. D) Less elastic. Show Answer Correct Answer: D) Less elastic. 9. If the price doubles and the quantity supplied also doubles, the price elasticity of supply for the good is A) -1. B) -2. C) 1. D) 2. Show Answer Correct Answer: C) 1. 10. If a price reduction leads to higher total revenue, this situation shows that demand is. A) Elastic. B) Inelastic. C) Perfectly elastic. D) Unitary elastic. Show Answer Correct Answer: A) Elastic. 11. The elasticity of demand for tissues is 0.66. This means the demand for tissues is A) Elastic. B) Unit elastic. C) Inelastic. D) Really expensive. Show Answer Correct Answer: C) Inelastic. 12. Cross elasticity of demand is ..... A) Percentage change in quantity demanded divided by the changes of price. B) Percentage change in quantity demanded of goods Y divided by the change in quantity demanded of goods X. C) Percentage change in quantity demanded of good X divided by the change in price of good X. D) Percentage change in quantity demanded of good X divided by the change in price good Y. Show Answer Correct Answer: D) Percentage change in quantity demanded of good X divided by the change in price good Y. 13. Products that tend to be used together A) Complements. B) Substitutes. C) Goods. D) Needs. Show Answer Correct Answer: A) Complements. 14. What are the determinants of price elasticity of supply? A) Availability of inputs, time period, mobility of resources, and spare capacity. B) Income levels, population growth, inflation rates, and exchange rates. C) Cost of production, market demand, technological advancements, and geographical location. D) Demand elasticity, market competition, consumer preferences, and government regulations. Show Answer Correct Answer: A) Availability of inputs, time period, mobility of resources, and spare capacity. 15. Factory owner Susan has calculated that her PES is 3. This number means that, A) If price were to rise by 2% Susan would supply 6% more products. B) If price were to rise by 2% Susan would supply 3% more products. C) The percentage change in price is three times the percentage change in quantity. D) In the PES formula, the top number is smaller than the bottom number. Show Answer Correct Answer: A) If price were to rise by 2% Susan would supply 6% more products. 16. In long term price elasticity of supplied is more elastic because more responsive to changes in price since sellers can adjust their production. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 17. For inferior goods, Income Elasticity of Demand will typically be ..... A) Positive. B) Negative. C) Both. D) None of these. Show Answer Correct Answer: B) Negative. 18. What are the factors that determine the income elasticity of supply? A) Education level, unemployment rate, and social media influence. B) Availability of resources, technology, time period, and ability to shift production. C) Government regulations, exchange rates, and inflation. D) Weather conditions, political stability, and consumer preferences. Show Answer Correct Answer: B) Availability of resources, technology, time period, and ability to shift production. 19. "The desire to purchase goods and services" A) Elasticity. B) Demand. C) Supply. D) Hatdog. Show Answer Correct Answer: B) Demand. 20. Prada has seen a increase in demand of 70%, while the price has decreased 35% A) .5 inelastic. B) .5 elastic. C) 2 inelastic. D) 2 elastic. Show Answer Correct Answer: D) 2 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 4Elasticity Of Demand And Supply Quiz 6Elasticity Of Demand And Supply Quiz 7 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books