Question

Q2. If the price elasticity of supply was calculated as 0.40 for a product and the price increases by 12%, what would happen to the quantity supplied?

A) Quantity supplied would increase by 6.3%.

B) Quantity supplied would increase by 8%.

C)Quantity supplied would increase by 4.8%.

Q3. If you divide the change in quantity by the original quantity, you are calculating the

A) percentage change.

B) change in elasticity.

C) quantity demanded change.

Q4. The percentage change in quantity divided by the percentage change in quantity is the

A) elasticity.

B) midpoint method.

C) growth rate.

Q5. Using the midpoint method, calculate the price elasticity of demand of Good Z using the following information: When the price of good Z is $10 (P1), the quantity demanded of good Z is 85 units (Q1). When the price of good Z rises to $15 (P2), the quantity demanded of good Z falls to 60 units (Q2).

A) The price elasticity of demand for good Z = 0.86.

B) The price elasticity of demand for good Z = 1.90.

C) The price elasticity of demand for good Z = 0.52.

Answer 1