Tara buys four music cassettes when the price is 10 and two cassettes when the price is 14 . Her ...

Tara buys four music cassettes when the price is 10 and two cassettes when the price is 14 . Her price elasticity of demand is:
 a. 0.
  b. 1.
  c. 2.
  d. 3.
  e. 4.

QUESTION 2

Leo's Bakery reduces the price of wheat bread from 3 to 1 and finds that quantity demanded increases from 100 to 122 loaves. Leo calculates that his price elasticity of demand for wheat bread is:
 a. 0.
  b. 0.2.
  c. 1.0.
  d. 1.5.
  e. 2.0

QUESTION 3

Since it is always a negative number, economists use the convention of taking the absolute value of:
 a. income elasticity of demand.
  b. cross price elasticity of demand.
  c. price elasticity of supply.
  d. price elasticity of demand.
  e. any elasticity calculation.

QUESTION 4

As one moves down a straight-line, down-sloping demand curve, price elasticity will:
 a. change from elastic, to unit elastic, then to inelastic.
  b. remain the same between any two points.
  c. change from inelastic, to elastic, then to unit elastic.
  d. change from unit elastic, to elastic, then to inelastic.
  e. change from elastic, to inelastic, then to unit elastic.

QUESTION 5

If a straight-line demand curve slopes down, price elasticity will:
 a. remain the same at all points on the demand curve.
  b. change between any two points along the demand curve.
  c. always be greater than one.
  d. always equal one.
  e. always be less than one.

QUESTION 6

If the quantity of bread demanded rises 2 percent when the price of bread declines 10 percent, then the price elasticity of demand is:
 a. 0.2.
 b. 1.
 c. 2.
 d. 10.
 e. Cannot be determined.