61) Demand for low budget items such as candy is generally ________ than demand for large budget items such as automobiles. A) higher B) lower C) more elastic D) less elastic 62) Demand for items people do not really need for their survival such as cars is generally ________ than demand for items such as water. A) higher B) lower C) more elastic D) less elastic 63) Which of the following goods is likely to have the most elastic demand? A) movie B) cigarettes C) electricity D) gasoline 64) Which of the following goods is likely to have the most inelastic demand? A) restaurant meals B) air travel C) movies D) cigarettes 65) Which of the following products has elastic demand? A) water B) coffee C) cars D) all ice cream 66) The price elasticity of demand for a good is relatively elastic if A) there are a large number of substitutes. B) the consumer has more time to make decisions about purchasing the good. C) the good is less of a necessity. D) all of the above 67) In wealthy countries such as the United States the price elasticity of the demand for food is ________ it is in poorer countries. A) greater than B) less than C) the same as D) None of the above; it is not possible to make international comparisons of price elasticity. 68) Which of the following factors would indicate more elastic demand? A) The good is a necessity rather than a luxury. B) The good represents a small fraction of the budget. C) Demand is measured over a longer period of time. D) There are few substitutes for the good. 69) Which of the following factors would indicate an inelastic demand? A) The good is a necessity rather than a luxury. B) The good represents a small fraction of the budget. C) Demand is measured over a shorter period of time. D) all of the above 70) Which of the following factors would indicate less elastic demand? A) The good represents a large fraction of the budget. B) Demand is measured over a longer period of time. C) There are few substitutes. D) The price of the good is high.
