1) Suppose the price of a good increases 5%, and the quantity
demanded falls 8%. The ----- of this good is -----.
supply, unit elastic
demand, perfectly elastic
demand, inelastic
demand, elasti
2) Suppose that when the price of a good increases from $120 to
$132 per unit, the quantity demanded falls from 33 to 30 units.
Using the midpoint method calculate price elasticity demand.
-1
-1.25
3.0
-0.1
3) Along a straight-line demand curve, demand at higher prices
is...