or tickets isa.perfectly elastic.b.perfectly inelastic.c.unitarily elastic.d.income elastic.4.The price elasticity of demand is thea.ratio of the change in price to the change in quantity demanded.b.ratio of the change in quantity demanded to the change in price.c.ratio of the percentage change in price to the percentage change in quantity demanded.d.ratio of the percentage change in quantity demanded to the percentage change in price.5.As you move down a straight-line downward-sloping demand curve, the price elasticity of demanda.becomes more elastic.b.becomes more inelastic.c.remains constant because the slope is constant.d.may become more or less elastic depending on the slope of the demand curve.6.Total revenue will increase if pricea.falls and demand is inelastic.b.falls and demand is elastic.c.rises and demand is elastic.d.rises and demand is unitarily elastic. 7.Refer to Figure 5.7. Using the midpoint formula, if the price of a Gardenburger is increased from $8 to $10, the price elasticity of demand equalsa.-3.b.-.5.c.-4.5.d. -9.e. None of the above8.Assume you earn $75,000 a year and your favorite entertainment magazine costs you $25 a year. Your demand for the sports magazine is likely to bea.inelastic.b.elastic.c.perfectly elastic.d.perfectly inelastic.9.If the income elasticity of good Z is .5, then good Z isa.an inferior good.b.a normal good.c.a luxury good.d. an income-neutral good.10.The government wants to reduce the consumption of electricity by 5%. The price elasticity of demand for electricity is -.4. The government shoulda.raise the price of electricity by 2%.b.raise the price of electricity by 0.08%.c.raise the price of electricity by .125%.d. lower the price of electricity by 0.4%.e. none of the above.1:a 2:b 3:b 4:d5:b 6:b 7:a 8:a 9:b 10:eSECOND QUIZ Short Answer 1.(5 points) Alarmed by the cost of health care, Senator Bell has sponsored a bill placing a ceiling on the fees charged by physician...
