1. Economists have devised measures of how much consumers alter their purchases in response to price changes. These measures are called

a. price controls.

b. price floors.

c. price ceilings.

d. price elasticities.

e. irrational behaviors.

____ 2. The more responsive consumers are to a price change,

a. the more price-elastic is the supply.

b. the more income-elastic is the demand.

c. the more price-inelastic is the demand.

d. the more price-elastic is the demand.

e. None of the above.

____ 3. To say there is an inelastic demand for a product means that

a. there are relatively few substitutes, few competitors, and a short time period under consideration.

b. consumers are very responsive to a change in the price of the product.

c. consumers are not very responsive to a change in the price of the product.

d. if the price rises by some percentage, then the quantity demanded will fall by a smaller percentage.

e. there is a positive relationship between price and total revenue.

Attachment:- 27875_1_econ-Assignment-Two.docx