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# 1. The concept of price elasticity of demand measures: a. the slope of the demand curve. b. the number of buyers in a market. c. the extent to which the demand curve shifts as the result of a price decline. d. the sensitiveness of quantities demanded to price changes. 2. When the percentage change in price is less than the resulting percentage change in quantity demanded: a. demand is elastic. b. demand is inelastic. c. demand is unit elastic. d. none of the above. 3. The elasticity of demand: a. will be the same at each price-quantity combination on a stable demand curve. b. tends to be elastic in high-price ranges and inelastic in low-price ranges. c. tends to be inelastic in high-price ranges and elastic in low-price ranges. d. is infinitely large for a perfectly inelastic demand curve. 4. Suppose that as the price of Y falls from \$2.00 to \$1.80 the quantity of Y demanded increases from 110 to 121. It can be concluded that the price elasticity of demand is: _______. 5. Total revenue rises as the price of a good increases if price elasticity of demand is: a. unitary elastic b. perfectly inelastic. 6. The demand for such products as salt, bread, and electricity tend to be: a. relatively price elastic. b. relatively price inelastic. c. of unit price elasticity. d. perfectly price elastic.

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