ECONOMICS

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1)The tire shop sells 50 tires a day at $75. After they raise the price on tires to $85, they now sell 46 tires a day. What is the elasticity of tires at the tire shop?
A) Inelastic
B) Elastic
C) Unit Elastic
D) Perfectly Inelastic
E) Perfectly Elastic

2)Which of the following goods is more likely to be elastic, and why?Toothpaste or a gold necklace.
A) Gold neckalce because it is more valuable.
B) Toothpaste because it is a necessity.
C) Gold necklace because it is a luxury.
D) Toothpaste because it has many substitutes.


3)The local deli sells 100 sandwiches for $4 each. They raise the price to $5 each and then sell 80 sandwiches. What is the elasticity of sandwiches at this deli?
A) Inelastic
B) Elastic
C) Unit Elastic
D) Perfectly Inelastic
E) Perfectly Elastic

4)Pizza Villa increased the price of its deluxe pizza from $10.50 to $11.00. They sold 200 pizzas at the old price and 190 pizzas at the new price. Using the total expenditures method, this indicates demand for the product is
A) elastic, because revenue increased by $10.
B) elastic, because revenue decreased by $10.
C) inelastic, because revenue increased by $10.
D) inelastic, because revenue decreased by $10.
E) unit elastic

5)Which of the following goods is more likely to be elastic, and why?Coca-Cola or all cola-flavored products.
A) All cola flavored products because they are not as tasty as Coca-Cola.
B) All cola flavored products because they have fewer subsitutes.
C) Coca-Cola because it has more substitues.
D) Coca-Cola because it is a luxury.



Answers I think are right:
1.B
2.D
3.A
4.D
5.C

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