1. Elasticity of demand is closely related to the slope of the demand curve. The more responsive buyers are to a change in price, the
a. steeper the demand curve will be
b. flatter the demand curve will be.
c. further to the right the demand curve will sit.
d. closer to the vertical axis the demand curve will sit.
2. Suppose there is a 6 percent increase in the price of good X and a resulting 6 percent decrease in the quantity of X demanded. Price elasticity of demand for X is
a. 0.
b. 1.
c. 6.
d.36.
3. If the price elasticity of demand for a good is 0.94, then which of the following events is consistent with a 4percent decrease in the quantity of the good demanded?
a. a 0.235 percent increase in the price of the good
b. a 2.350 percent increase in the price of the good
c. a 3.760 percent increase in the price of the good
d. a 4.255 percent increase in the price of the good