I. MULTIPLE CHOICE: answer letter on the blank.Write E if the answer is not given.

_____1. What is Elasticity?

a.A measure of the responsiveness of one variable to a change in another variable.

b.A measure of flexibility of demand and supply.

c.Degree of responsiveness of the price to the quantity.

d.Degree of responsiveness of the income to the price.

_____2. What coefficient of price elasticity shows?

a.degree of market competition

b.degree of responsiveness to price changes

c.degree of responsiveness to income changes

d.degree of responsiveness to complementary goods

_____6. When the computed value of a good is zero, the good is:

a)elastic b)inelastic

c)perfectly elastic d)perfectly inelastic

_____7. A decrease in the price of raw materials

a) a change in demand b)a change in supply

c) a change in quantity demanded c)a change in quantity supplied

_____8. A change in price results to a bigger change in quantity demanded.

a) inelastic demand b)unitary demand

c) elastic demand d)None of the above

_____9. In absence of a change in price, there is an infinite change in quantity demanded.

a) inelastic demand b)unitary demand

c) perfectly elastic demand d)elastic demand

_____ 10. NFA rice is an example of a good that is:

a)elastic supply b)inelastic supply

c)perfectly elastic supply d)perfectly inelastic supply

II. UNDERSTANDING THE GRAPH:Write your letter answer - A or B or C or D in the space before the number.

A B C D