Frequent Exam Questions without Answers
Elasticity
Chapter 9 ― Question 3
On a linear demand curve, elasticity of demand is unit elastic
- where the demand curve intersects the supply curve
- at its midpoint where the demand curve intersects the x-axis
- where the demand curve intersect the y-axis
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Chapter 9 ― Question 4
The quantity demanded of laptops has increased by 30 per cent. If the price elasticity for laptops is 3.0, the price for laptops must have fallen by
- 6 percent
- 3 percent
- 30 percent
- 10 percent
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Chapter 9 ― Question 6
The price of a commodity falls from $10 to $8. Quantity demanded rises from 100 to 200 units.
What is the price elasticity of demand between the two prices? Use the midpoint formula.
- 5.0
- 3.05
- 2
- 2.5
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Chapter 9 ― Question 7
If the cross elasticity for two goods is + 1,5 they are complements. True or false?
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Chapter 9 ― Question 13
Income elasticity for luxuries is
- above zero but below 1
- below zero
- equal to 1
- above 1
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Chapter 9 ― Question 14
Look at the table below.
| Price | Quantity | |
| $40 | 2 | |
| $30 | 4 | |
| $20 | 6 | |
| $10 | 8 |
Demand is most price elastic between
- $30 and $40
- $20 and $30
- $10 and $20
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