Macroeconomics Essay

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Course | ECN-D101-3003-Fall2013-Principles of Macroeconomics | Test | Elasticities | Started | 10/3/13 10:33 PM | Submitted | 10/3/13 11:17 PM | Status | Completed | Attempt Score | 100 out of 100 points | Time Elapsed | 43 minutes. | Instructions | | * Question 1 10 out of 10 points | | | We would expect: . A) the demand for Coca-Cola to be less elastic than the demand for soft drinks in general. B) the demand for Coca-Cola to be more elastic than the demand for soft drinks in general. C) no relationship between the elasticity of demand for Coca-Cola and the elasticity of demand for soft drinks in general. D) none of the above to hold true.Answer | | | | | Selected Answer: | 2. b | Correct Answer: | 2. b | | | | | * Question 2 10 out of 10 points | | | 2. When the percentage change in price is greater than the resulting percentage change in quantity demanded: . A. a decrease in price will increase total revenue. B. demand may be either elastic or inelastic. C. an increase in price will increase total revenue. D. demand is elastic.Answer | | | | | Selected Answer: | 3. c | Correct Answer: | 3. c | | | | | * Question 3 10 out of 10 points | | | 3. The main determinant of elasticity of supply is the: . A. number of close substitutes for the product available to consumers. B. amount of time the producer has to adjust inputs in response to a price change. C. urgency of consumer wants for the product. D. number of uses for the product.Answer | | | | | Selected Answer: | 2. b | Correct Answer: | 2. b | | | | | * Question 4 10 out of 10 points | | | 4. The demand for a product is inelastic with respect to price if: . A. consumers are largely unresponsive to a per unit price change. B. the elasticity coefficient is

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