This quiz works best with JavaScript enabled. Home > Economics > Microeconomics > Elasticity Of Demand And Supply > Elasticity Of Demand And Supply – Quiz 6 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Elasticity Of Demand And Supply Quiz 6 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Classification of goods into categories such as substitute goods, complementary goods and no relationship goods can be identified based on the value of ..... A) Price elasticity of demand. B) Income elasticity of demand. C) Cross elasticity of demand. D) Price elasticity of supply. Show Answer Correct Answer: C) Cross elasticity of demand. 2. The price of one bedroom apartments in Cheyenne increased from $ 55, 000 to $ 65, 000 and the quantity of apartment for sale increased from 25 to 30. At the midpoint between these two prices, the price elasticity of supply for apartments in Cheyenne is equal to A) 0.916. B) 0.756. C) 1.995. D) 0.085. Show Answer Correct Answer: A) 0.916. 3. The concept of elasticity is primarily used to measure the: A) Responsiveness of producers to changes in price. B) Responsiveness of consumers to changes in price. C) Responsiveness of producers to changes in quantity demanded. D) Responsiveness of consumers to changes in income. Show Answer Correct Answer: B) Responsiveness of consumers to changes in price. 4. When consumers have a need for a product that is urgent A) The demand curve is inelastic. B) The demand curve is elastic. C) The demand curve is complementary. D) The demand curve is unit demand. Show Answer Correct Answer: A) The demand curve is inelastic. 5. For Normal Goods, Income Elasticity of Demand will typically be ..... A) Negative. B) Positive. C) Both. D) None of these. Show Answer Correct Answer: B) Positive. 6. What are the factors that determine the price elasticity of supply? A) Color of the product, brand popularity, and consumer income. B) Time period, availability of inputs, and flexibility of production processes. Show Answer Correct Answer: B) Time period, availability of inputs, and flexibility of production processes. 7. What are the different types of income elasticity of demand? A) Positive income elasticity, negative income elasticity, and zero income elasticity. B) Elastic income elasticity, inelastic income elasticity, and unitary income elasticity. Show Answer Correct Answer: A) Positive income elasticity, negative income elasticity, and zero income elasticity. 8. True or False If the price of a product falls, the consumer has a natural response to increase the quantity of the product he will buy. A) Tama. B) Mali. Show Answer Correct Answer: A) Tama. 9. Which of the following expressions represent a cross-price elasticity of demand? A) Percentage change in quantity demanded of sugar divided by percentage change in quantity supplied of sugar. B) Percentage change in quantity demanded of sugar divided by percent change in price of milk. C) Percentage change in price of sugar divided by percentage change in quantity demanded of sugar. D) Percentage change in quantity demanded of sugar divided by percentage change in income. Show Answer Correct Answer: B) Percentage change in quantity demanded of sugar divided by percent change in price of milk. 10. The PES for wheat in a given country A) Is less elastic the longer the time period in question. B) Is more elastic the more substitutes there are for wheat. C) Is greater the more wheat there is in storage. D) Will be higher if there are restrictions on wheat imports. Show Answer Correct Answer: C) Is greater the more wheat there is in storage. 11. True or False The percentage of Elasticity of Demand is always negative because of the inverse relationship. To get the positive percentage it is necessary to get its absolute value. A) Tama. B) Mali. Show Answer Correct Answer: A) Tama. 12. The value of elasticity of demand for a good will as the availability of substitutes. A) Increase ; decreases. B) Increase ; increase. C) Remain positive ; decreases. D) Decrease ; increases. Show Answer Correct Answer: B) Increase ; increase. 13. If consumer's income increases by 10% that caused demand for pizza to increase by 12%, then pizza can be considered as ..... A) Luxury goods. B) Necessity goods. C) Normal goods. D) Giffen goods. Show Answer Correct Answer: C) Normal goods. 14. Income Elasticity of Demand 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: B) Measure the responsiveness or sensitivity of changes in the quantity demanded of a product due to a change in the income. 15. What is the concept of elasticity primarily used to measure? A) Responsiveness or sensitivity. B) Volume. C) Density. D) Temperature. Show Answer Correct Answer: A) Responsiveness or sensitivity. 16. If storage of a good is cheap and readily available, supply is likely to be A) Relatively elastic. B) Relatively inelastic. C) Perfectly inelastic. D) Perfectly elastic. Show Answer Correct Answer: A) Relatively elastic. 17. How do you calculate price elasticity of demand? A) By multiplying the percentage change in quantity demanded by the percentage change in price. B) By subtracting the percentage change in quantity demanded from the percentage change in price. C) By adding the percentage change in quantity demanded to the percentage change in price. D) By dividing the percentage change in quantity demanded by the percentage change in price. Show Answer Correct Answer: D) By dividing the percentage change in quantity demanded by the percentage change in price. 18. If the demand for donuts increases by 15% due to the increase of consumer's income by 10%, the donuts could be ..... goods. A) Essential. B) Giffen. C) Luxury. D) Normal. Show Answer Correct Answer: C) Luxury. 19. True or False If the price of a product increases, the natural response of a producer is to reduce the quantity he produces. A) Tama. B) Mali. Show Answer Correct Answer: B) Mali. 20. If the income elasticity of good P's is-3, good P's is ..... A) Normal goods. B) Inferior goods. C) Substitute goods. D) Complementary goods. Show Answer Correct Answer: B) Inferior goods. ← 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 5Elasticity Of Demand And Supply Quiz 7 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books