AP Microeconomics Elasticity — practice questions
53 free MCQs with worked solutions. Tap any question for the answer + explanation, or practice them all in the app.
Practice AP Microeconomics Elasticity in the app →How is the price elasticity of demand defined?How is the price elasticity of supply defined?According to the source, demand or supply is classified as elastic under which condition?According to the source, when is demand or supply classified as inelastic?A one percent change in price leads to an exactly proportional one percent change in quantity. What does the sWhy do economists use the midpoint method rather than a simple percentage change when calculating elasticity?In the midpoint method, how is the percentage change in quantity calculated between two points, Q1 and Q2?In the midpoint method, how is the percentage change in price calculated between two points, P1 and P2?Between two points on a demand curve, price falls from $70 to $60 and quantity demanded rises from 2,800 to 3,Between two other points on the same demand curve, price rises from $120 to $130 and quantity demanded falls fAlong a straight-line demand curve, the price drops by $10 and quantity rises by 200 units at every point, so For alarm clock supply, price rises from $8 to $9 and quantity supplied rises from 50 to 70 units. Using the mFor alarm clock supply, price rises from $10 to $11 and quantity supplied rises from 80 to 88 units. Using theFor alarm clock supply, price rises from $12 to $13 and quantity supplied rises from 95 to 100 units. Using thFor smart phone demand, price rises from $70 to $80 and quantity demanded falls from 2,800 to 2,600. Using theFor smart phone demand, price rises from $90 to $100 and quantity demanded falls from 2,400 to 2,200. Using thAn apartment rents for $650 per month with 10,000 units rented, and rises to $700 per month with 13,000 units Infinite, or perfect, elasticity. What does this term mean?Which goods does the source give as examples likely to have highly elastic supply curves because their inputs Luxury goods with many substitutes, such as Caribbean cruises and sports vehicles, as likely to have highly elZero elasticity, or perfect inelasticity. What does this term mean?The source names diamond rings and housing in prime locations, such as apartments facing Central Park in New YThe source names life-saving drugs and gasoline as goods likely to have highly inelastic demand curves. What tA demand curve has constant unitary elasticity at every point. Moving down the curve from one point to the nexA supply curve has constant unitary elasticity at every point. Moving up the curve, quantity increases by the Table 5.2 in housing with a demand elasticity of 0.12, the lowest value in the table. How should this value beTable 5.2 lists restaurant meals as the most elastic good, with a demand elasticity of 2.27. If restaurant priA 10 percent increase in the price of housing causes what change in the quantity of housing demanded?Demand for a good is elastic at the current price. According to the source, what happens to total revenue if tDemand for a good is inelastic at the current price. According to the source, what happens to total revenue ifDemand for a good has exactly unitary elasticity at the current price. According to the source, what happens tA band selling concert tickets finds demand for tickets is elastic at its current price. According to the sourA band selling concert tickets finds demand for tickets is inelastic at its current price. According to the soRestaurant meals have a demand elasticity of 2.27. If a restaurant raises its prices by 10 percent, quantity dHousing has a demand elasticity of 0.12. If suppliers raise housing prices by 10 percent, quantity demanded faAccording to the source, the elasticity of coffee demand is about 0.3. What does a 10 percent rise in the pricAccording to the source, the elasticity of demand for cigarettes among regular smokers is about 0.3. What doesAccording to the source, when demand for a taxed good is more inelastic than its supply, who ends up bearing mAccording to the source, when supply of a taxed good is more inelastic than its demand, who ends up bearing moAccording to the source, what happens to tax revenue in a market where both demand and supply are very elasticAccording to the source, how do elasticities of demand and supply typically compare between the short run and In the 1973 OPEC oil embargo example, an inelastic short-run demand scenario where the price of crude oil roseHow is the income elasticity of demand defined?For most products, most of the time, what sign does the income elasticity of demand have, and what does the soAccording to the source, someone with a higher income might buy fewer hamburgers because they are buying more How is the cross-price elasticity of demand defined?Coffee and tea are substitute goods, according to the source's example. What sign does their cross-price elastCoffee and sugar are complement goods, according to the source's example. What sign does their cross-price elaAccording to the source, how does the wage elasticity of labor supply typically compare between teenage workerAccording to the source, at least in the short run, how does the elasticity of savings with respect to the intIn 2011, Netflix raised the price for customers who wanted to keep both streaming video and DVD rental from abNetflix officials expected to lose about 600,000 of their roughly 24.6 million US subscribers when the price rNetflix officials expected to lose about 600,000 subscribers after the 2011 price increase, but 810,000 actual