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123456

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Submitted By jennt
Words 11797
Pages 48
C h a p t e r

4

ELASTICITY

Topic: Calculating Elasticity
Skill: Conceptual

Price Elasticity of Demand

4)

Topic: The Price Elasticity of Demand
Skill: Conceptual

1) The slope of a demand curve depends on
A) the units used to measure price and the units used to measure quantity.
B) the units used to measure price but not the units used to measure quantity.
C) the units used to measure quantity but not the units used to measure price.
D) neither the units used to measure price nor the units used to measure quantity.

A)
B)
C)
D)

When the quantity of coal is measured in kilograms instead of pounds, the demand for coal becomes more elastic. less elastic. neither more nor less elastic. undefined. Answer: C
Topic: Calculating Elasticity
Skill: Recognition

5) The price elasticity of demand equals
A) the change in the price divided by the change in quantity demanded.
B) the change in the quantity demanded divided by the change in price.
C) the percentage change in the price divided by the percentage change in the quantity demanded.
D) the percentage change in the quantity demanded divided by the percentage change in the price.

Answer: A
Topic: The Price Elasticity of Demand
Skill: Conceptual

2) The price elasticity of demand depends on
A) the units used to measure price and the units used to measure quantity.
B) the units used to measure price but not the units used to measure quantity.
C) the units used to measure quantity but not the units used to measure price.
D) neither the units used to measure price nor the units used to measure quantity.

Answer: D
Topic: Calculating Elasticity
Skill: Analytical

Answer: D

6)

Topic: The Price Elasticity of Demand
Skill: Recognition

3) The price elasticity of demand measures
A) how often the price of a good changes.
B) the slope of a budget

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