經濟學（一）

Chapter 5 題庫
1. Which of the following expressions can be used to compute the price elasticity of demand?

a. Price elasticity of demand = • .

b. Price elasticity of demand = • .

c. Price elasticity of demand = • .

d. Price elasticity of demand = • .

ANSWER: c

2. Using the midpoint method, the price elasticity of demand for a good is computed to be
approximately 0.75. Which of the following events is consistent with a 10 percent decrease
in the quantity of the good demanded?
a. a 7.5 increase in the price of the good
b. a 13.33 percent increase in the price of the good
c. an increase in the price of the good from $7.50 to $10
d. an increase in the price of the good from $10 to $17.50
ANSWER: b

3.For a particular good, a 2 percent increase in price causes a 12 percent decrease in

quantity demanded. Which of the following statements is most likely applicable to this
good?

a. There are no close substitutes for this good.

b. The good is a luxury.
c. The market for the good is broadly defined.
d. The relevant time horizon is short.
ANSWER: b

4. For a particular good, a 12 percent increase in price causes a 3 percent decrease in quantity
demanded. Which of the following statements is most likely applicable to this good?
a. There are many substitutes for this good.
b. The good is a necessity.
c. The market for the good is narrowly defined.
d. The relevant time horizon is long.
ANSWER: b

5. The difference between slope and elasticity is that slope

a. is a ratio of two changes, and elasticity is a ratio of two percentage changes.
b. is a ratio of two percentage changes, and elasticity is a ratio of two changes.

1
 c. measures changes in quantity demanded more accurately than elasticity.
d. None of the above is correct; there is no difference between slope and elasticity.
ANSWER: a

6. Jerome says that he will spend exactly $25 each month on new apps for his mobile device,
regardless of the price of apps. Jerome’s demand for apps is
a. perfectly elastic.
b. unit elastic.
c. perfectly inelastic.
d. somewhat inelastic, but not perfectly inelastic.
ANSWER: b

7. If the price elasticity of demand is 1.5, regardless of which two points on the demand curve
are used to compute the elasticity, then demand is
a. perfectly inelastic, and the demand curve is vertical.
b. elastic, and the demand curve is a straight, downward-sloping line.
c. perfectly elastic, and the demand curve is horizontal.
d. elastic, and the demand curve is something other than a straight, downward-sloping line.
ANSWER: d

8. Suppose that demand is inelastic within a certain price range. For that price range,
a. an increase in price would increase total revenue because the decrease in quantity
demanded is proportionately less than the increase in price.
b. an increase in price would decrease total revenue because the decrease in quantity
demanded is proportionately greater than the increase in price.
c. a decrease in price would increase total revenue because the increase in quantity
demanded is proportionately smaller than the decrease in price.
d. a decrease in price would not affect total revenue.
ANSWER: a

9. On a downward-sloping linear demand curve, total revenue reaches its maximum value at
the
a. midpoint of the demand curve.
b. lower end of the demand curve.
c. upper end of the demand curve.
d. It is impossible to tell without knowing prices and quantities demanded.
ANSWER: a

10. Skip’s Sealcoating Service increased its total monthly revenue from $12,000 to $13,500
when it raised the price of driveway repairs from $600 to $750. The price elasticity of demand
for Skip’s Sealcoating Service is
a. 0.11.
b. 0.47.
c. 1.12.
d. 2.11.
ANSWER: b

2
11. Suppose that 300 bottles of soda are demanded at a particular price. If the price of a bottle
of soda rises from that price by 6 percent, the number of bottles of soda demanded falls to 275.
Using the midpoint approach to calculate the price elasticity of demand, it follows that the
a. demand for bottles of soda in this price range is perfectly elastic.
b. price increase will increase the total revenue of soda sellers.
c. price elasticity of demand for bottles of soda in this price range is about 0.69.
d. price elasticity of demand for bottles of soda in this price range is about 1.45.
ANSWER: d

12. When her income increased from $10,000 to $20,000, Heather's consumption of macaroni
decreased from 10 pounds to 5 pounds and her consumption of soy-burgers increased from 2
pounds to 4 pounds. We can conclude that for Heather, macaroni
a. and soy-burgers are both normal goods with income elasticities equal to 1.
b. is an inferior good and soy-burgers are normal goods; both have income elasticities of 1.
c. is an inferior good with an income elasticity of -1 and soy-burgers are normal goods
with an income elasticity of 1.
d. and soy-burgers are both inferior goods with income elasticities equal to -1.
ANSWER: c
13. Last month, sellers of good Y took in $100 in total revenue on sales of 50 units of good Y.
This month sellers of good Y raised their price and took in $120 in total revenue on sales of
40 units of good Y. At the same time, the price of good X stayed the same, but sales of good
X increased from 20 units to 40 units. We can conclude that goods X and Y are
a. substitutes, and have a cross-price elasticity of 0.60.
b. complements, and have a cross-price elasticity of -0.60.
c. substitutes, and have a cross-price elasticity of 1.67.
d. complements, and have a cross-price elasticity of -1.67.
ANSWER: c

14. Some firms eventually experience problems with their capacity to produce output as their
output levels increase. For these firms,
a. market power is substantial.
b. supply is perfectly inelastic.
c. supply is more elastic at low levels of output and less elastic at high levels of output.
d. supply is less elastic at low levels of output and more elastic at high levels of output.
ANSWER: c

15. A decrease in supply will cause the largest increase in price when
a. both supply and demand are inelastic.
b. both supply and demand are elastic.
c. demand is elastic and supply is inelastic.
d. demand is inelastic and supply is elastic.
ANSWER: a

Scenario 5-5
Milk has an inelastic demand, and beef has an elastic demand. Suppose that a mysterious
increase in bovine infertility decreases both the population of dairy cows and the
population of beef cattle by 50 percent.

3
16. Refer to Scenario 5-5. Total consumer spending on milk will
a. increase, and total consumer spending on beef will increase.
b. increase, and total consumer spending on beef will decrease.
c. decrease, and total consumer spending on beef will increase.
d. decrease, and total consumer spending on beef will decrease.
ANSWER: b

17. When studying how some event or policy affects a market, elasticity provides information
on the
a. change in the costs of production.
b. tradeoff between equality and efficiency.
c. effect on the budget deficit or surplus.
d. direction and magnitude of the effect.
ANSWER: d

18. Which of the following statements about the consumers’ responses to rising gasoline
prices is correct?
a. Because gasoline is a necessity, consumers do not decrease their quantity demanded in
either the short run or the long run.
b. Consumers react to a 10% increase in price with about a 10% decrease in quantity
demanded in both the short run and long run.
c. Consumers decrease their quantity demanded more in the short run than in the long run.
d. Consumers decrease their quantity demanded more in the long run than in the short run.
ANSWER: d

19. The price elasticity of demand for mobile phones

a. will be higher if there is an improvement in the production technology.
b. will be lower if consumers perceive mobile phones to be a necessity.
c. is computed as the percentage change in the price of mobile phones divided by the
percentage change in quantity of mobile phones.
d. All of the above are correct.
ANSWER: b

20. When the price of chai tea lattés is $5, Maxine buys 20 per month. When the price is $4,
she buys 30 per month. Maxine's demand for chai tea lattés is
a. elastic, and her demand curve would be relatively flat.
b. elastic, and her demand curve would be relatively steep.
c. inelastic, and her demand curve would be relatively flat.
d. inelastic, and her demand curve would be relatively steep.
ANSWER: a

21. If the price elasticity of supply is 1.5, and a price increase led to a 3% increase in quantity
supplied, then the price increase is about
a. 0.2%.
b. 0.5%.
c. 2.0%.
d. 4.5%.
4
ANSWER: c

22. Because the demand for wheat tends to be inelastic, the development of a new, more
productive hybrid wheat would tend to
a. increase the total revenue of wheat farmers.
b. decrease the total revenue of wheat farmers.
c. decrease the demand for wheat.
d. decrease the supply of wheat.
ANSWER: b