Question : Assume that both consumer income and the number of sellers in the market for good X decrease. Based on this information, we can confidently conclude that the equilibrium:

Option 1: Price will decrease

Option 2: Price will increase

Option 3: Quantity will increase

Option 4: Quantity will decrease

Question : If the price elasticity of demand for a good is 2.5, then a 10% decrease in price will result in a:

Option 1: 2.5% increase in quantity demanded.

Option 2: 25% increase in quantity demanded.

Option 3: 2.5% decrease in quantity demanded.

Option 4: 25% decrease in quantity demanded.

Question : If the price elasticity of demand for a good is 1.2, then a 10% decrease in price will result in a:

Option 1: 1.2% increase in quantity demanded.

Option 2: 12% increase in quantity demanded.

Option 3: 1.2% decrease in quantity demanded.

Option 4: 12% decrease in quantity demanded.

Question : If the price elasticity of demand for a good is -1.5, then a 10% increase in price will result in a:

Option 1: 10% decrease in quantity demanded.

Option 2: 15% decrease in quantity demanded.

Option 3: 10% increase in quantity demanded.

Option 4: 15% increase in quantity demanded.

Question : If the price elasticity of demand for a good is 0.8, then a 10% increase in price will result in a:

Option 1: 0.8% increase in quantity demanded.

Option 2: 8% increase in quantity demanded.

Option 3: 0.8% decrease in quantity demanded.

Option 4: 8% decrease in quantity demanded.

Question :  If the price elasticity of demand for a good is -0.5, then a 10% increase in price will result in a:

Option 1: 0.5% decrease in quantity demanded.

Option 2: 5% decrease in quantity demanded.

Option 3: 0.5% increase in quantity demanded.

Option 4: 5% increase in quantity demanded.