Quiz FINALS Flashcards
1
Q
(T/F) The price elasticity of supply measures. . .
A
FALSE
2
Q
(T/F) Unlike demand, supply is more elastic in short run
A
FALSE
3
Q
(T/F) Price elasticity of demand measures the percentage
A
TRUE
4
Q
(T/F) If the price of a commodity declines, total revenue will increase
A
TRUE
5
Q
(T/F) When demand is price elastic, the percentage increase in quantity demanded is less than the percentage decrease in price
A
FALSE
6
Q
(T/F) Necessities tend to have elastic demands, luxuries inelastic demand
A
FALSE
7
Q
(T/F) Narrowly defined markets tend to have more elastic
A
TRUE
8
Q
(T/F) Normal goods have negative income elasticity
A
FALSE
9
Q
(T/F) Negative cross price elasticity . . .
A
FALSE
10
Q
(T/F) Perfectly inelastic supply curve is . . . vertical to x-axis
A
TRUE
