宏观经济学ch05.docVIP

CHAPTER 5 1. If price elasticity of demand is 2.0, this implies that consumers would buy twice as much of the good if price falls by 10 percent. require a 2 percent cut in price to raise quantity demanded of the good by 1 percent. buy 2 percent more of the good in response to a 1 percent cut in price. require at least a $2 increase in price before showing any response to the price increase. ANSWER: c buy 2 percent more of the good in response to a 1 percent cut in price. TYPE: M KEY1: D SECTION: 1 OBJECTIVE: 1 RANDOM: Y 2. If the price elasticity of demand within the price range from $1