经济学原理对应练习-05.doc

经济学原理对应练习-05.doc

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Chapter5/ElasticityandItsApplicationsv215

Chapter5

ElasticityandItsApplications

MultipleChoice

1. Ingeneral,elasticityisameasureof

a. theextenttowhichadvancesintechnologyareadoptedbyproducers.

b. theextenttowhichamarketiscompetitive.

c. howfastthepriceofagoodrespondstoashiftofthesupplycurveordemandcurve.

d. howmuchbuyersandsellersrespondtochangesinmarketconditions.

ANS:

D PTS:

1 DIF:

1 REF:

5-0

TOP:

Elasticity MSC:

Definitional

2. Whenstudyinghowsomeeventorpolicyaffectsamarket,elasticityprovidesinformationonthe

a. directionoftheeffectonthemarket.

b. magnitudeoftheeffectonthemarket.

c. speedofadjustmentofthemarketinresponsetotheeventorpolicy.

d. numberofmarketparticipantswhoaredirectlyaffectedbytheeventorpolicy.

ANS:

B PTS:

1 DIF:

2 REF:

5-0

TOP:

Elasticity MSC:

Interpretive

3. Howdoestheconceptofelasticityallowustoimproveuponourunderstandingofsupplyanddemand?

a. Elasticityallowsustoanalyzesupplyanddemandwithgreaterprecisionthanwouldbethecaseintheabsenceoftheelasticityconcept.

b. Elasticityprovidesuswithabetterrationaleforstatementssuchas“anincreaseinxwillleadtoadecreaseiny”thanwewouldhaveintheabsenceoftheelasticityconcept.

c. Withoutelasticity,wewouldnotbeabletoaddressthedirectioninwhichpriceislikelytomoveinresponsetoasurplusorashortage.

d. Withoutelasticity,itisverydifficulttoassessthedegreeofcompetitionwithinamarket.

ANS:

A PTS:

1 DIF:

2 REF:

5-0

TOP:

Elasticity MSC:

Interpretive

4. Elasticityimprovesourunderstandingofsupplyanddemandbyadding

a. measuresofequity.

b. measuresofefficiency.

c. aquantitativeelementtoouranalysis.

d. aqualitativeelementtoouranalysis.

ANS:

C PTS:

1 DIF:

2 REF:

5-0

TOP:

Elasticity MSC:

Interpretive

5. Thepriceelasticityofdemandmeasureshowmuch

a. quantitydemandedrespondstoachangeinprice.

b. quantitydemandedrespondstoachangeinincome.

c. pricerespondstoachangeindemand.

d. demandrespondstoachangeinsupply.

ANS:

A PTS:

1 DIF:

1 REF:

5-1

TOP:

Priceelasticityofdemand MSC:

Definitional

6. Thepriceelasticityofdemandmeasures

a. buyers’responsivenesstoachangeinthepriceofagood.

b. theextenttowhichdemandincreasesasadditionalbuyersenterthemarket.

c. howmuchmoreofagoodconsumerswilldemandwhenincomesrise.

d. themovementalongasupplycurvewhenthereisachangeindemand.

ANS:

A PTS:

1 DIF:

1 REF:

5-1

TOP:

Priceelasticityofdemand MSC:

Definitional

7. Demandissaidtobeelasticif

a. thepriceofthegoodrespondssubstantiallytochangesindemand.

b. demandshiftssubstantiallywhenincomeortheexpectedfuturepriceofthegoodchanges.

c. buyersdonotrespondmuchtochangesinthepriceofthegood.

d. buyersrespondsubstantiallytochangesinthepriceofthegood.

ANS:

D PTS:

1 DIF:

2 REF:

5-1

TOP:

Elasticdemand MSC:

Definitional

8. Demandissaidtobeinelasticif

a. buyersrespondsubstantiallytochangesinthepriceofthegood.

b. demandshiftsonlyslightlywhenthepriceofthegoodchanges.

c. thequantitydemandedchangesonlyslightlywhenthepriceofthegoodchanges.

d. thepriceofthegoodrespondsonlyslightlytochangesindemand.

ANS:

C PTS:

1 DIF:

2 REF:

5-1

TOP:

Inelasticdemand MSC:

Definitional

9. Ifdemandisinelastic,then

a. buyersdonotrespondmuchtoachangeinprice.

b. buyersrespondsubstantiallytoachangeinprice,buttheresponseisveryslow.

c. buyersdonotaltertheirquantitiesdemandedmuchinresponsetoadvertising,fads,orgeneralchangesintastes.

d. thedemandcurveisveryflat.

ANS:

A PTS:

1 DIF:

2 REF:

5-1

TOP:

Inelasticdemand MSC:

Definitional

10. Whenquantitydemandedrespondsstronglytochangesinprice,demandissaidtobe

a. fluid.

b. elastic.

c. dynamic.

d. highlyvariable.

ANS:

B PTS:

1 DIF:

1 REF:

5-1

TOP:

Elasticdemand MSC:

Definitional

11. Whichofthefollowingstatementsaboutthepriceelasticityofdemandiscorrect?

a. Thepriceelasticityofdemandforagoodmeasuresthewillingnessofbuyersofthegoodtomoveawayfromthegoodasitspriceincreases.

b. Priceelasticityofdemandreflectsthemanyeconomic,psychological,andsocialforcesthatshapeconsumertastes.

c. Otherthingsequal,ifgoodxhasclosesubstitutesandgoodydoesnothaveclosesubstitutes,thenthedemandforgoodxwillbemoreelasticthanthedemandforgoody.

d. Alloftheabovearecorrect.

ANS:

D PTS:

1 DIF:

2 REF:

5-1

TOP:

Priceelasticityofdemand MSC:

Interpretive

12. Foragoodthatisanecessity,

a. quantitydemandedtendstorespondsubstantiallytoachangeinprice.

b. demandtendstobeinelastic.

c. thelawofdemandoftendoesnotapply.

d. Alloftheabovearecorrect.

ANS:

B PTS:

1 DIF:

2 REF:

5-1

TOP:

Priceelasticityofdemand MSC:

Interpretive

13. Foragoodthatisaluxury,demand

a. tendstobeinelastic.

b. tendstobeelastic.

c. hasunitelasticity.

d. cannotberepresentedbyademandcurveintheusualway.

ANS:

B PTS:

1 DIF:

2 REF:

5-1

TOP:

Priceelasticityofdemand MSC:

Interpretive

14. Ifapersononlyoccasionallybuysacupofcoffee,hisdemandforcoffeeisprobably

a. representedbyaverticalornearly-verticaldemandcurve.

b. noteasilyrepresentedbyademandscheduleordemandcurve.

c. inelastic.

d. elastic.

ANS:

D PTS:

1 DIF:

2 REF:

5-2

TOP:

Priceelasticityofdemand MSC:

Interpretive

15. Apersonwhotakesaprescriptiondrugtocontrolhighcholesterolmostlikelyhasademandforthatdrugthatis

a. inelastic.

b. unitelastic.

c. elastic.

d. highlyresponsivetochangesinincome.

ANS:

A PTS:

1 DIF:

2 REF:

5-1

TOP:

Priceelasticityofdemand MSC:

Interpretive

16. Otherthingsequal,thedemandforagoodtendstobemoreinelastic,the

a. fewertheavailablesubstitutes.

b. longerthetimeperiodconsidered.

c. morethegoodisconsideredaluxurygood.

d. morenarrowlydefinedisthemarketforthegood.

ANS:

A PTS:

1 DIF:

2 REF:

5-1

TOP:

Inelasticdemand MSC:

Interpretive

17. ThedemandforChocolateChipCookieDoughicecreamislikelyquiteelasticbecause

a. icecreammustbeeatenquickly.

b. thisparticularflavoroficecreamisviewedasanecessitybymanyice-creamlovers.

c. themarketisbroadlydefined.

d. otherflavorsoficecreamaregoodsubstitutesforthisparticularflavor.

ANS:

D PTS:

1 DIF:

2 REF:

5-1

TOP:

Priceelasticityofdemand|Substitutes MSC:

Interpretive

18. ThedemandforWertherscandyislikely

a. elasticbecausecandyisexpensiverelativetoothersnacks.

b. elasticbecausetherearemanyclosesubstitutesforWerthers.

c. elasticbecauseWerthersareregardedasanecessitybymanypeople.

d. inelasticbecauseitisusuallyeatenquickly,makingtherelevanttimehorizonshort.

ANS:

B PTS:

1 DIF:

2 REF:

5-1

TOP:

Priceelasticityofdemand MSC:

Interpretive

19. Thereareveryfew,ifany,goodsubstitutesformotoroil.Therefore,

a. thedemandformotoroilwouldtendtobeinelastic.

b. thedemandformotoroilwouldtendtobeelastic.

c. thedemandformotoroilwouldtendtorespondstronglytochangesinpricesofothergoods.

d. thesupplyofmotoroilwouldtendtorespondstronglytochangesinpeople’stastesforlargecarsrelativetotheirtastesforsmallcars.

ANS:

A PTS:

1 DIF:

2 REF:

5-1

TOP:

Priceelasticityofdemand MSC:

Interpretive

20. Holdingallotherforcesconstant,whenthepriceofgasolinerises,thenumberofgallonsofgasolinedemandedwouldfallsubstantiallyoveraten-yearperiodbecause

a. buyerstendtobemuchlesssensitivetoachangeinpricewhengivenmoretimetoreact.

b. buyerstendtobemuchmoresensitivetoachangeinpricewhengivenmoretimetoreact.

c. buyerswillhavesubstantiallymoreincomeoveraten-yearperiod.

d. thequantitysuppliedofgasolineincreasesverylittleinresponsetoanincreaseinthepriceofgasoline.

ANS:

B PTS:

1 DIF:

2 REF:

5-1

TOP:

Priceelasticityofdemand MSC:

Interpretive

21. Agoodwillhaveamoreinelasticdemand,

a. thegreatertheavailabilityofclosesubstitutes.

b. thebroaderthedefinitionofthemarket.

c. thelongertheperiodoftime.

d. themoreitisregardedasaluxury.

ANS:

B PTS:

1 DIF:

2 REF:

5-1

TOP:

Priceelasticityofdemand MSC:

Interpretive

22. Itislikelythat

a. thedemandforflat-screencomputermonitorsismoreelasticthanthedemandformonitorsingeneral.

b. thedemandforgrandfatherclocksismoreelasticthanthedemandforwristwatches.

c. thedemandforcardboardismoreelasticoveralongperiodoftimethanoverashortperiodoftime.

d. Alloftheabovearecorrect.

ANS:

D PTS:

1 DIF:

2 REF:

5-1

TOP:

Priceelasticityofdemand MSC:

Interpretive

23. Itislikelythat

a. thedemandfornaturalgasismoreelasticoverashortperiodoftimethanoveralongperiodoftime.

b. thedemandforsmokealarmsismoreelasticthanthedemandforPersianrugs.

c. thedemandforbourbonwhiskeyismoreelasticthanthedemandforalcoholicbeveragesingeneral.

d. Alloftheabovearecorrect.

ANS:

C PTS:

1 DIF:

2 REF:

5-1

TOP:

Priceelasticityofdemand MSC:

Interpretive

24. Whenthepriceofbubblegumis$0.50,thequantitydemandedis400packsperday.Whenthepricefallsto$0.40,thequantitydemandedincreasesto600.Giventhisinformationandusingthemidpointmethod,weknowthatthedemandforbubblegumis

a. inelastic.

b. elastic.

c. unitelastic.

d. perfectlyinelastic.

ANS:

B PTS:

1 DIF:

2 REF:

5-1

TOP:

Priceelasticityofdemand|Midpointmethod MSC:

Applicative

25. Economistscomputethepriceelasticityofdemandasthe

a. percentagechangeinpricedividedbythepercentagechangei