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Georgia Milestones: Economic Price & Income Elasticity 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. Which of the following is NOT an inelastic demand for a product?

Question 2 2. A binding price ceiling line is _____ the market equilibrium point.

Question 3 3. If a butter manufacturer raises prices by 10% and the quantity of butter demanded by consumers falls 20%, this would be an example of _____.

Question 4 4. What are subsidies?

Question 5 5. If a 10% change in price leads to a 30% change in the quantity demanded, then what is the elasticity?

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Question 6 6. How is price elasticity of demand measured?

Question 7 7. Which of the following is the best explanation of price skimming?

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

Question 9 9. A demand chart or schedule is the _____

Question 10 10. Why is a private jet considered a superior good according to income elasticity of demand?

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

Question 12 12. One of the toy company's products is a baby item that simulates a car driving. It can be attached to a crib to help soothe babies to sleep. No other product like this is available. What type of demand would this product likely have?

Question 13 13. Which of the following does the cross price elasticity of demand between two goods NOT tell us?

Question 14 14. Who's the target consumer during phase one?

Question 15 15. If a seller knows that the demand for his good or service is inelastic, then what would they most likely do?

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Question 16 16. What is a cartel?

Question 17 17. Bob is looking for a job, but he lacks the credentials to get a specialized job with a high starting salary. It is likely he will have to start working in an entry level position. Which of the following would benefit Bob in this scenario?

Question 18 18. According to income elasticity of demand, how does rising income affect spending habits?

Question 19 19. Which of the following is an example of a good that may not be fully elastic in the long-term?

Question 20 20. Cross price elasticity of demand is equal to the percentage change in quantity demanded for Product A, divided by:

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Question 21 21. Governments have sought to limit the supply of drugs with all of the following strategies, EXCEPT:

Question 22 22. How does price elasticity of demand and cross price elasticity of demand differ?

Question 23 23. Which of the following statements is TRUE?

Question 24 24. Which of the following is an example of price inelasticity of supply in the short-term?

Question 25 25. What is the price at which demand and supply are equal?

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Question 26 26. What is the term for economic output lost due to a price floor or ceiling?

Question 27 27. According to income elasticity of demand, which of the following is a superior good?

Question 28 28. Why are product shortages normally a bad thing for economic markets?

Question 29 29. Why might a company have a perfectly inelastic supply?

Question 30 30. Elasticity of demand is said to be elastic when elasticity is:

Georgia Milestones: Economic Price & Income Elasticity 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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