曼昆经济学原理试题Chapter 05b .pdfVIP

Chapter 5 Elasticity and Its Applications Test B 1. The elasticity of demand measures a. the increase in demand as additional buyers enter the market. b. a buyer’s responsiveness to a change in the price of a good. c. how much less of a good consumers will demand when incomes fall. d. the increase in supply that will occur from an increase in the price of a good. ANSWER: b. a buyer’s responsiveness to a change in the price of a good. TYPE: M KEY1: D SECTION: 1 OBJECTIVE: 1 RANDOM: Y 2. Demand is said to be inelastic if a. consumers hardly respond to a change in price. b. consumers respond substantially to a change in price. c. consumers respond directly to a change in income. d. the change in quantity demanded is equal to the change in price. ANSWER: a. consumers hardly respond to a change in price. TYPE: M KEY1: D SECTION: 1 OBJECTIVE: 1 RANDOM: Y 3. The elasticity of demand for luxuries tends to be a. greater than 1. b. equal to 1. c. less than 1. d. equal to 0. ANSWER: c. less than 1. TYPE: M KEY1: D SECTION: 1 OBJECTIVE: 1 RANDOM: Y 4. Milky Way candy bars tend to have an elastic demand because a. the candy bar market is too broadly defined. b. there are many close substitutes for Milky Ways. c. Milky Ways are considered by some to be a necessity. d. it is usually eaten quickly and therefore the time horizon is short. ANSWER: b. there are many close substitutes for Milky Ways. TYPE: M KEY1: D SECTION: 1 OBJECTIVE: 2 RANDOM: Y 5. Economists compute elasticity using the midpoint method primarily because it a. is the simplest method to compute elasticity. b. uses the same equation that is used to compute slope