If the percentage change in the quantity demanded of a good equals the percentage change in price, price elasticity of demand is:
a. elastic.
b. inelastic.
c. perfectly elastic.
d. unitary elastic.
QUESTION 2If the percentage change in the quantity demanded of a good is greater than the percentage change in price, price elasticity of demand is:
a. elastic.
b. inelastic.
c. perfectly inelastic.
d. perfectly elastic.
QUESTION 3If the percentage change in the quantity demanded of a good is less than the percentage change in price, price elasticity of demand is:
a. elastic.
b. inelastic.
c. perfectly inelastic.
d. unitary elastic.
QUESTION 4Using the midpoints formula, what would be price elasticity of demand for a gallbladder operation if the number of operations fell from 6,000 to 4,000 per week after its price increased from 6,000 to 10,000?
a. 0.25.
b. 0.50.
c. 0.80.
d. 1.25
QUESTION 5Over the elastic portion of a demand curve, a decrease in price causes:
a. an increase in total revenue.
b. a decrease in total revenue.
c. no change in total revenue.
d. an increase in quantity demanded, but anything can happen to revenue.
QUESTION 6A perfectly elastic demand curve has an elasticity coefficient of:
a. 0.
b. 1.
c. less than 1.
d. infinity.
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