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【单选题】If the price elasticity of demand for a good is 4.0, then a 10 percent increase in price results in a
A.
0.4 percent decrease in the quantity demanded.
B.
2.5 percent decrease in the quantity demanded.
C.
4 percent decrease in the quantity demanded.
D.
40 percent decrease in the quantity demanded.
【单选题】If the price elasticity of demand for a good is 0.8, then a
A.
1 percent rise in the price leads to a 0.8 percent decrease in the quantity demanded.
B.
one dollar rise in the price leads to a 0.8 percent decrease in the quantity demanded.
C.
1 percent rise in the price leads to an 80 percent decrease in the quantity demanded.
D.
1 percent rise in the price leads to an 8 percent decrease in the quantity demanded.
【单选题】If the elasticity of demand for a good is greater than the government expected:
A.
Consumers will bear more of the burden of the tax than the government expected.
B.
Producers will bear more of the burden of the tax than the government expected.
C.
The tax will raise less revenue than the government expected.
D.
Both b. and c. are true.
【单选题】Suppose the demand for a good is currently unit elastic over the relevant range. Then a new substitute good is introduced to the market. As a result, demand over that range is now likely to be
A.
Unit elastic.
B.
Relatively elastic.
C.
Relatively inelastic.
D.
Perfectly elastic.
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