SOLVED

51) Demand is price inelastic if ________ percentage change in the price leads to a ________ percentage change in the quantity demanded. A) a small; large B) a large; small C) any; large D) Both answers A and B are correct. E) None of the above answers is correct. 52) If a 10 percent price increase generates a 10 percent decrease in quantity demanded, then demand is A) unit elastic. B) elastic. C) perfectly inelastic. D) perfectly elastic. E) inelastic. 53) If a 10 percent price increase generates a 20 percent decrease in quantity demanded, then demand is A) elastic. B) perfectly inelastic . C) perfectly elastic. D) inelastic. E) unit elastic. 54) If a 30 percent price increase generates a 20 percent decrease in quantity demanded, then demand is A) inelastic. B) elastic. C) unit elastic. D) perfectly elastic. E) perfectly inelastic. 55) The price of furnace filters increased by 5 percent and the quantity demanded did not change. The price elasticity of demand for furnace filters is A) perfectly inelastic. B) inelastic. C) elastic. D) unit elastic. E) perfectly elastic. 56) If a 2 percent change in price leads to a ________ percent change in the quantity demanded, then demand is ________. A) 2; elastic B) 1; unit elastic C) 3; inelastic D) 1; inelastic E) 0; perfectly elastic 57) If a 2 percent change in price leads to a ________ percent change in the quantity demanded, then demand is ________. A) 2; elastic B) 1; unit elastic C) 3; inelastic D) 4; elastic E) 0; perfectly elastic 58) If the price elasticity of demand for a good is 2, then a 10 percent increase in the price of that good ________ the quantity demanded by ________ percent. A) increases; 20 B) decreases; 2 C) decreases; 10 D) decreases; 20 E) increases; 8 59) When the price of tacos rise 4 percent, the quantity demanded decreases 10 percent. What is the price elasticity of demand for tacos? A) 40.0 B) 25.0 C) 0.4 D) 2.5 E) 10.0 60) Suppose the price of a ticket to a Lenny Kravitz concert is $41 and at that price, the quantity of tickets demanded is 17,000 per concert. Using the midpoint method of calculating percentage changes, if Mr. Kravitz raises the price to $48 and the quantity demanded decreases to 16,000, the price elasticity of demand for his concert tickets is A) 15.73. B) 6.06. C) 1.00. D) 0.39. E) 0.93.