Click Clickon onthe thebutton buttontotogo gototothe theQuestion problem © 2013 Pearson Elasticities of Demand and Supply CLICKER QUESTIONS © 2013 Pearson Click Clickon onthe thebutton buttontotogo gototothe theQuestion problem Checkpoint 5.1 Checkpoint 5.2 Checkpoint 5.3 Question Question 11 Question Question 44 Question Question 77 Question Question 22 Question Question 55 Question Question 88 Question Question 33 Question Question 66 Question Question 99 Question Question 10 10 © 2013 Pearson CHECKPOINT 5.1 Question The demand for a good is elastic if A consumers respond strongly to changes in the price of the good B a large percentage change in price brings about a small percentage change in quantity demanded C a small percentage change in price brings about a small percentage change in quantity demanded D the quantity demanded is not responsive to price changes E a change in the quantity demanded brings a small change in the price of the good © 2013 Pearson CHECKPOINT 5.1 Question The price of a bag of pretzels rises from $2 to $3, and the quantity demanded decreases from 100 bags to 60 bags The price elasticity of demand for pretzels is A 1.0 B 1.25 C 40.0 D 20.0 E 0.80 © 2013 Pearson CHECKPOINT 5.1 Question When a firm raises the price of its product, the firm’s total revenue _ A B C D E decreases if demand for its product is unit elastic increases if demand for its product is unit elastic decreases if demand for its product is inelastic increases if demand for its product is elastic decreases if demand for its product is elastic © 2013 Pearson CHECKPOINT 5.2 Question If, when the price of a good rises by 10 percent, the quantity supplied of the good increases by percent, then the elasticity of supply A B C D E exceeds 1, and the supply of the good is elastic is negative, and the supply of the good is inelastic is less than 1, and the supply of the good is elastic is less than 1, and the supply of the good is inelastic exceeds and the supply of the good is inelastic © 2013 Pearson CHECKPOINT 5.2 Question The greater the amount of time that passes after the price of a good changed, the _ of that good becomes A B C D E less elastic the supply more elastic the supply more negative the supply steeper the supply curve more inelastic the supply © 2013 Pearson CHECKPOINT 5.2 Question The supply of beachfront property on St Simon’s Island is A B C D E elastic unit elastic negative inelastic perfectly elastic © 2013 Pearson CHECKPOINT 5.3 Question To determine whether two goods are complements or substitutes, economists use the _ A B C D E price elasticity of supply cross elasticity of demand price elasticity of demand income elasticity of demand substitute elasticity of demand © 2013 Pearson CHECKPOINT 5.3 Question The income elasticity of demand for used cars is less than zero So, used cars are _ A B C D E a good with an inelastic demand a normal good an inferior good a perfectly inelastic good substitute goods © 2013 Pearson CHECKPOINT 5.3 Question When income increases by percent, the demand for potatoes decreases by percent The income elasticity of demand for potatoes equals _ A 2.00 B 3.00 C 3.00 D 0.33 E 0.33 © 2013 Pearson CHECKPOINT 5.3 Question 10 If two goods have a cross elasticity of demand of 2, then when the price of one good increases, the demand for the other good _, and the two goods are A B C D E increases; complements decreases; complements remains unchanged; complements might increase or decrease; substitutes decreases; substitutes © 2013 Pearson ... If, when the price of a good rises by 10 percent, the quantity supplied of the good increases by percent, then the elasticity of supply A B C D E exceeds 1, and the supply of the good is elastic... elasticity of supply cross elasticity of demand price elasticity of demand income elasticity of demand substitute elasticity of demand © 2013 Pearson CHECKPOINT 5.3 Question The income elasticity of. .. negative, and the supply of the good is inelastic is less than 1, and the supply of the good is elastic is less than 1, and the supply of the good is inelastic exceeds and the supply of the good is inelastic