Question Details

The demand for durable goods tends to be more price elastic 



1.	An increase in each of the following factors would normally provide a subsequent increase in quantity demanded, except:
a.	price of substitute goods
b.	level of competitor advertising
c.	consumer income level
d.	consumer desires for goods and services
e.	a and b


	
	2.	Producers' goods are:
a.	consumers' goods
b.	raw materials combined to produce consumer goods
c.	durable goods used by consumers
d.	always more expensive when used by corporations
e.	none of the above


	
	3.	The demand for durable goods tends to be more price elastic than the demand for non-durables.
a.	true
b.	false


	
	4.	A price elasticity (ED) of 1.50 indicates that for a ____ increase in price, quantity demanded will ____ by ____.
a.	one percent; increase; 1.50 units
b.	one unit; increase; 1.50 units
c.	one percent; decrease; 1.50 percent
d.	one unit; decrease; 1.50 percent
e.	ten percent; increase; fifteen percent


	


	5.	Those goods having a calculated income elasticity that is negative are called:
a.	producers' goods
b.	durable goods
c.	inferior goods
d.	nondurable goods
e.	none of the above




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