1. If the short-tem own price elasticity for transportation is estimated to be -0.6. then over the long-tern

a) Elasticity of demand should not change

b) Demand will be more elastic

c) Demand will be less elastic

d) None of the above.

2. The elasticity which shows the responsiveness of the demand for a good due to changes in the price of that good is the:

a) Own-price elasticity of demand.

b) Income elasticity of demand.

c) Log-linear elasticity of demand.

d) Cross-price elasticity of demand.

3. The elasticity which shows the responsiveness of the demand for a good due to changes in income is:

a) Own-price elasticity of demand.

b) Income elasticity of demand.

c) Log-linear elasticity of demand.

d) Cross-price elasticity of demand.

4. Having raised price of one of its laptop computers. Dell observes that the revenue from the sale if that computer remained unchanged. In that case, the demand for that computer is

a. Elastic

b. Inelastic

c. Unitary

d. Income normal

5. Successful advertising of Nike shots can have the effect of making the own-price elasticity of demand for these shoes

a. More elastic

b. Less elastic

c. Disappear

d. Do none of the above

6. If the price of computers rises

a. The demand curve for computers will shift to the right

b. The supply curve for computers will shift to the right

c. The supply of CDs will fall

d. There will be a movement along the demand curve for computers