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Elasticities of Demand and Supply

5. Elasticities of Demand and Supply. CLICKER QUESTIONS. Checkpoint 5.1. Checkpoint 5.2. Checkpoint 5.3. Question 1. Question 4. Question 7. Question 2. Question 5. Question 8. Question 3. Question 9. Question 6. Question 10. CHECKPOINT 5.1. Question 1

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Elasticities of Demand and Supply

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  1. 5 Elasticities of Demand and Supply CLICKER QUESTIONS

  2. Checkpoint 5.1 Checkpoint 5.2 Checkpoint 5.3 Question 1 Question 4 Question 7 Question 2 Question 5 Question 8 Question 3 Question 9 Question 6 Question 10

  3. CHECKPOINT 5.1 Question 1 The demand for a good is elastic if • consumers respond strongly to changes in the price of the good. • a large percentage change in price brings about a small percentage change in quantity demanded. • a small percentage change in price brings about a small percentage change in quantity demanded. • the quantity demanded is not responsive to price changes. • a change in the quantity demanded brings a small change in the price of the good.

  4. CHECKPOINT 5.1 Question 2 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 ________. • 1.0 • 1.25 • 40.0 • 20.0 • 0.80

  5. CHECKPOINT 5.1 Question 3 When a firm raises the price of its product, the firm’s total revenue _________. • 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

  6. CHECKPOINT 5.2 Question 4 If when the price of a good rises by 10 percent, the quantity supplied of the good increases by 5 percent, then the elasticity of supply is ________. • exceeds 1 and the supply of the good is elastic • negative and the supply of the good is inelastic • less than 1 and the supply of the good is elastic • less than 1 and the supply of the good is inelastic • exceeds 1 and the supply of the good is inelastic

  7. CHECKPOINT 5.2 Question 5 The greater the amount of time that passes after the price of a good changed, the ___________ of that good becomes. • less elastic the supply • more elastic the supply • more negative the supply • steeper the supply curve • more inelastic the supply

  8. CHECKPOINT 5.2 Question 6 The supply of beachfront property on St. Simon’s Island is ________. • elastic • unit elastic • negative • inelastic • perfectly elastic

  9. CHECKPOINT 5.3 Question 7 To determine whether two goods are complements or substitutes, economists use the _______. • price elasticity of supply • cross elasticity of demand • price elasticity of demand • income elasticity of demand • substitute elasticity of demand

  10. CHECKPOINT 5.3 Question 8 The income elasticity of demand for used cars is less than zero. So, used cars are _____. • a good with an inelastic demand • a normal good • an inferior good • a perfectly inelastic good • substitute goods

  11. CHECKPOINT 5.3 Question 9 • When income increases by 6 percent, the demand for potatoes decreases by 2 percent.The income elasticity of demand for potatoes equals _____. • 2.00. • 3.00. • 3.00. • 0.33. • 0.33.

  12. 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 ______. • increases; complements • decreases; complements • remains unchanged; complements • might increase or decrease; substitutes • decreases; substitutes

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