1. The price elasticity of demand
a) Measures the sensitivity of quantity supplied of a certain good to a change in the price of a complementary good.
b) Measures the sensitivity of quantity demanded of a certain good to a change in the price of a substitute good.
c) Measures the sensitivity of quantity demanded of a certain good to a change in consumer income.
d) Measures the sensitivity of quantity supplied of a certain good to a change in the price of that good.
e) Measures the sensitivity of quantity demanded of a certain good to a change in the price of that good.
2. The measure of the sensitivity of the quantity demanded of one good to a change in the price of another good is ________ elasticity.
a) cross-price
b) own-price
c) other-good
d) criss-crossed
e) multiple-good
3. The deadweight loss that is due to a tax
a) is caused by an inefficient tax code.
b) helps restore allocative efficiency.
c) does not impair the efficiency of the market.
d) is the sum of the losses in consumer and producer surpluses.
e) is the sum of the gains in consumer and producer surpluses.