# Economics 0011A/B Lecture Notes - Lecture 28: Demand Curve, Midpoint Method, Negative Number

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Published on 2 Aug 2020

School

Department

Course

Professor

ECO101H1: Principles of Microeconomics Prof. Freitas, University of Toronto

Topic: Elasticity

Multiple Choice Practice Questions and Solutions

Use the following to answer questions 1-3:

1. Use Table: Price Elasticity. What is the price elasticity of demand (using the midpoint formula) between $2.50

and $2.25?

A) 9

B) 19

C) 119

D) 0.5

2. Use Table: Price Elasticity. What is the price elasticity of demand (using the midpoint formula) between $1.75

and $1.50?

A) 0.42

B) 1.50

C) 1.86

D) 0.08

3. Use Table: Price Elasticity. What is the price elasticity of demand (using the midpoint formula) between $0.75

and $0.50?

A) 0.25

B) 0.33

C) 0.43

D) 0.52

Use the following to answer questions 4-6:

F2019 1 MC Elasticity

ECO101H1: Principles of Microeconomics Prof. Freitas, University of Toronto

Figure 1: Demand for Notebook Computers

4. Use Figure: The Demand for Notebook Computers. The change in total revenue resulting from a change in

price from P to T suggests that demand is:

A) inelastic.

B) price-elastic.

C) price-inelastic.

D) price unit-elastic.

5. Use Figure: The Demand for Notebook Computers. Total revenue at point S equals the:

A) distance 0P.

B) distance MS.

C) area 0TUM.

D) area 0PSM.

6. Use Figure: The Demand for Notebook Computers. Total revenue at point V equals the:

A) area 0TVN.

B) area 0PSVN.

C) distance 0T.

D) distance NV.

Use the following to answer questions 7-8:

F2019 2 MC Elasticity