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Microeconomics

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10 Question Quiz
2016: Paula Jara
Quiz by 2016: Paula Jara, updated more than 1 year ago
2016: Paula Jara
Created by 2016: Paula Jara about 9 years ago
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Resource summary

Question 1

Question
When is demand inelastic?
Answer
  • The percentage change of quantity demanded is greater than the percentage change in price of a good.
  • The percentage change of quantity demanded is smaller than the percentage change in price of a good.
  • A relative small change in price results in a relatively big change in quantity demanded.
  • The PED is greater than 1.

Question 2

Question
The factors that change PES are?
Answer
  • Time only.
  • Time and stocks only.
  • Stocks and capacities only.
  • Time, stocks, capacities, and capital labor.

Question 3

Question
What should a company do to raise total revenue if the product is inelastic?
Answer
  • Lower prices.
  • Declare it an inferior good.
  • Diversify its production.
  • Raise prices.

Question 4

Question
The price of elasticity of demand of an elastic product can range between?
Answer
  • -1 to 1
  • 0 to 1
  • -infinity to 1
  • 1 to infinity

Question 5

Question
When is the Xed a substitute good rather than a complementary one?
Answer
  • When the Xed is negative
  • When it is a normal good
  • When the Xed is positive
  • Can't be determined

Question 6

Question
Supply is elastic if?
Answer
  • The good in the question is a normal good
  • The slope of the supply curve is positive
  • If the curve crosses through y-axis
  • If the curve crosses through x-axis

Question 7

Question
If the price elasticity of demand for a product equals 1, as its price rises the
Answer
  • Total revenue increases
  • Total revenue stays the same
  • Total revenue decreases
  • supply of good decreases

Question 8

Question
What is the difference between a luxury good and an inferior good.
Answer
  • Luxury goods Yed is always positive, and elastic
  • Luxury goods Yed is always positive, and inelastic
  • Luxury goods Yed may be both inelastic and elastic
  • Luxury goods are always negative

Question 9

Question
In substitute goods...?
Answer
  • Weak substitutes are elastic
  • There is no such a thing as weak substitutes
  • Strong substitutes are elastic
  • There is no such a thing as strong substitutes

Question 10

Question
What is the shape of the unit elastic for PED?
Answer
  • Horizontal
  • Vertical
  • Positively diagonal
  • Rectangular hyperbola
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