Which Of The Following Would Have The Most Elastic Demand

Question: . Corn grown and harvested by a small farmer in Iowa

b. Heroin for a drug addict

.

c. Water for a desert hiker

d. One of several optional textbooks in a​ pass-fail course

Answer: a. near perfectly elastic demand

b. near perfectly inelastic demand

c. near perfectly inelastic demand

d. near perfectly elastic demand

Question: Price elasticity of demand is defined as

A.

the change in quantity demanded divided by the change in price.

B.

the percentage change in quantity demanded divided by the percentage change in price.

C.

quantity demanded divided by price.

D.

quantity demanded divided by the change in price.

Answer: the percentage change in quantity demanded divided by the percentage change in price.

Question:

Answer: The responsiveness of quantity demanded to a change in the price of a good.

Question:

Answer: In the first case total revenue falls and in the second case total revenue falls and then rises.

Question: A.

on the​ downward-sloping portion of the demand curve.

B.

in the inelastic range of the demand curve.

C.

in the elastic range of the demand curve.

.D.

at the point of​ unit-elasticity on the demand curve.

Answer: at the point of​ unit-elasticity on the demand curve.

Question:

Answer: raise the price if demand is inelastic.

Question: Total revenue will decrease when

A.

the price elasticity of demand equals 1.20 and price rises.

B.

price and quantity change in opposite directions.

C.

the price elasticity of demand is negative.

D.

the price elasticity of demand equals 1.00 and price falls.

Answer: the price elasticity of demand equals 1.20 and price rises.

Question: All of the following determine the price elasticity of demand except

A.

the existence of close substitutes.

B.

a change in the price of resources used to produce the good.

C.

the proportion of a​ person’s budget spent on the good.

D.

the length of the time period.

Answer: a change in the price of resources used to produce the good.

Question: Which of the following would have the most elastic​ demand?

A.

​Coca-Cola.

B.

Salt.

C.

Electricity.

D.

Cigarettes.

Answer: ​Coca-Cola.

Question: The absolute value of the​ short-run elasticity of demand for bread has been estimated to be 0.15. Its​ long-run elasticity of demand is

A.

0.15.

B.

uncertain without more information.

C.

more than 0.15.

D.

less than 0.15.

Answer: more than 0.15.