47. When a public transit system (such as a subway or bus line) raises its fares

Question

47. When a public transit system (such as a subway or bus line) raises its fares, it may experience an increase in total revenue. This suggests that demand is:
A) unstable.
B) price inelastic.
C) price elastic.
D) unit price elastic.
45. If the quantity demanded of agricultural output is very unresponsive to a fall in price, the demand for agricultural output is:
A) price elastic.
B) price inelastic.
C) positively sloped.
D) horizontal.
48. A constant price elasticity of demand curve is one whose:
A) slope is the same at every point on the curve.
B) price elasticity of demand is the same at every point on the curve.
C) quantity is the same at every point on the curve.
D) price elasticity of demand and slope are the same at every point on the curve.

49. Whenever supply increases, the resulting market price will always be lower except:
A) when demand is perfectly price elastic (when the demand curve is horizontal).
B) when demand is completely price inelastic (when the demand curve is vertical).
C) when supply is perfectly price inelastic (when the supply curve is vertical).
D) in the case of demand having unit price elasticity throughout.

50. A demand curve that is perfectly inelastic:
A) will be vertical.
B) will be horizontal.
C) will be upward sloping.
D) has an elasticity equal to 1 everywhere on the curve.

Explanation / Answer

Hello again! :)

47. When a public transit system (such as a subway or bus line) raises its fares, it may experience an increase in total revenue. This suggests that demand is:
A) unstable.
B) price inelastic.
C) price elastic.
D) unit price elastic.

45. If the quantity demanded of agricultural output is very unresponsive to a fall in price, the demand for agricultural output is:
A) price elastic.
B) price inelastic.
C) positively sloped.
D) horizontal.

48. A constant price elasticity of demand curve is one whose:
A) slope is the same at every point on the curve.
B) price elasticity of demand is the same at every point on the curve.
C) quantity is the same at every point on the curve.
D) price elasticity of demand and slope are the same at every point on the curve.

49. Whenever supply increases, the resulting market price will always be lower except:
A) when demand is perfectly price elastic (when the demand curve is horizontal).
B) when demand is completely price inelastic (when the demand curve is vertical).
C) when supply is perfectly price inelastic (when the supply curve is vertical).
D) in the case of demand having unit price elasticity throughout.

50. A demand curve that is perfectly inelastic:
A) will be vertical. (it actually says this in the previous question, too!)
B) will be horizontal.
C) will be upward sloping.
D) has an elasticity equal to 1 everywhere on the curve.

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