1. A 10 percent increase in the quantity of spinach demanded results from a 20 percent decline in its price. The price elasticity of demand for spinach is____.

Select one:

a. 5.00.

b. 2.0.

c. 10.0.

d. 0.5.

2. If a rise in the price of good B increases the quantity demanded of good A,

Select one:

a. B is a substitute for A, but A is a complement to

b. A is a substitute for B, but B is a complement to

c. A and B are substitutes.

d. A and B are complements.

3.

Price

(randss per peck)

Quantity demanded (pecks)

8

2,000

7

4,000

6

6,000

5

8,000

4

10,000

3

12,000

The table above gives the demand schedule for carrots. The price elasticity of demand between R6.00 and R7.00 per peck is__________.

Select one:

a. 1.0.

b. 2.0.

c. 2.6

d. 5.0

4. Deb’s income has just risen from R950 per week to R1,050 per week. As a result, she decides to increase the number of movies she attends each month by 5 percent. Her demand for movies is

Select one:

a. income inelastic.

b. represented by a horizontal line.

c. represented by a vertical line.

d. income elastic.

5.

A 10 percent increase in income causes the quantity of apple juice demanded to increase from 18,800 to 21,200 gallons. The income elasticity of demand for apple juice is__________.

Select one:

a. 1.2.

b. 0.5.

c. 1.0.

d. 0.8.

7. The price of a good will fall if_______.

Select one:

a. the quantity demanded exceeds the quantity supplied.

b. the price of a complement falls.

c. there is a surplus at the current price.

d. the current price is less than the equilibrium price.

8. If the price is above the equilibrium price, then there is a__________.

Select one:

a. surplus, and market forces will operate to lower price.

b. shortage, and market forces will operate to raise price.

c. shortage, and market forces will operate to lower price.

d. surplus, and market forces will operate to raise price.

9. When the quantity demanded equals quantity supplied

Select one:

a. there is a shortage.

b. the government must be intervening in the market.

c. None of the given options

d. there is a surplus.

Question

1. A 10 percent increase in the quantity of spinach demanded results from a 20 percent decline in its price. The price elasticity of demand for spinach is____.

Select one:

a. 5.00.

b. 2.0.

c. 10.0.

d. 0.5.

2. If a rise in the price of good B increases the quantity demanded of good A,

Select one:

a. B is a substitute for A, but A is a complement to

b. A is a substitute for B, but B is a complement to

c. A and B are substitutes.

d. A and B are complements.

3.

Price (randss per peck)	Quantity demanded (pecks)
8	2,000
7	4,000
6	6,000
5	8,000
4	10,000
3	12,000

The table above gives the demand schedule for carrots. The price elasticity of demand between R6.00 and R7.00 per peck is__________.

Select one:

a. 1.0.

b. 2.0.

c. 2.6

d. 5.0

4. Deb’s income has just risen from R950 per week to R1,050 per week. As a result, she decides to increase the number of movies she attends each month by 5 percent. Her demand for movies is

Select one:

a. income inelastic.

b. represented by a horizontal line.

c. represented by a vertical line.

d. income elastic.

5.

A 10 percent increase in income causes the quantity of apple juice demanded to increase from 18,800 to 21,200 gallons. The income elasticity of demand for apple juice is__________.

Select one:

a. 1.2.

b. 0.5.

c. 1.0.

d. 0.8.

7. The price of a good will fall if_______.

Select one:

a. the quantity demanded exceeds the quantity supplied.

b. the price of a complement falls.

c. there is a surplus at the current price.

d. the current price is less than the equilibrium price.

8. If the price is above the equilibrium price, then there is a__________.