quiz 8

Question 1

If a 10% raise in price causes a 15% decrease in the quantity demanded, then price elasticity of demand is said to be

Answer 1

elastic

Question 2

Suppose that the quantity of apples sold increases by 12% after the price of pears increases by 36%. Using the % change method, the coefficient of cross-price elasticity of demand is

Answer 2

0.33

Question 3

Two goods are substitutes if

Answer 3

their cross-price elasticity of demand is positive

Question 4

If price elasticity of demand measures -1.68, then the demand for the good is considered to be

Answer 4

elastic

Question 5

If the quantity of concert tickets sold decreases by 10% when the price increases 14% then the price elasticity of demand over this range of the demand curve is said to be

Answer 5

inelastic

Question 6

Given that the cross-price elasticity of demand between X and Y is -3.19, we can conclude that goods X and Y are

Answer 6

complementary