Determining Price in Economics Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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Question 1 1. Cross price elasticity of demand is equal to the percentage change in quantity demanded for Product A, divided by:

Question 2 2. If a 10% change in price leads to a 30% change in the quantity demanded, then what is the elasticity?

Question 3 3. Which of the following is an example of price inelasticity of supply in the short-term?

Question 4 4. How does price elasticity of demand and cross price elasticity of demand differ?

Question 5 5. Which of the following is NOT an inelastic demand for a product?

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Question 6 6. Which of the following statements is TRUE?

Question 7 7. Which of the following is an example of a good that may not be fully elastic in the long-term?

Question 8 8. If the cross price elasticity between apples and oranges is 2, which is correct?

Question 9 9. How is price elasticity of demand measured?

Question 10 10. Which of the following does the cross price elasticity of demand between two goods NOT tell us?

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Question 11 11. According to income elasticity of demand, which of the following is a normal good?

Question 12 12. According to income elasticity of demand, how does rising income affect spending habits?

Question 13 13. If a seller knows that the demand for his good or service is inelastic, then what would they most likely do?

Question 14 14. According to income elasticity of demand, which of the following is a superior good?

Question 15 15. Elasticity of demand is said to be elastic when elasticity is:

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Question 16 16. Why is a private jet considered a superior good according to income elasticity of demand?

Question 17 17. According to income elasticity of demand, which of the following is an inferior good?

Question 18 18. When is a good considered to have an elastic supply?

Question 19 19. Why might a company have a perfectly inelastic supply?

Question 20 20. If the price of printers increased by 10% and the quantity demanded of printer paper fell by 2%, what is the cross elasticity of demand equal and what does it tell us?

Determining Price in Economics Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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