Supply and Demand and Perfect Competition
TECHNOLOGICAL INSTITUTE OF THE PHILIPPINES
COLLEGE OF BUSINESS EDUCATION
Principles of Economics With Land Reform and Taxation (Econ 003)
NAME : _______________________________________________ SCORE : ____________________________
MIDTERM QUIZ No. 1 (Take Home) SECTION: _____________________________
DIRECTION: Write the CAPITAL LETTER of the CORRECT ANSWER on the space provided. Any form of ERASURES is strictly not allowed.
1. If you were running a firm in a perfectly competitive industry you would be spending your time making decisions on A. how much of each input to use. B. how much to spend on advertising. C. what price to charge. D. the design of the product. 2. Market power is: A. a firm's ability to sell any amount of output it desires at the market-determined price. B. a firm's ability to charge any price it likes. C. a firm's ability to monopolise a market completely. D. a firm's ability to raise price without losing all demand for its product. 3. Which of the following would not be considered a legitimate measure of demand elasticity? A. Price elasticity of demand B. Income elasticity of demand C. Supply elasticity of demand D. Cross-price elasticity of demand 4. The price elasticity of demand is calculated by dividing: A. he absolute change in quantity demanded by the absolute change in price. B. the percentage change in quantity demanded by the percentage change in price. C. the absolute change in quantity demanded by the percentage change in price. D. the percentage change in quantity demanded by the absolute change in price. 5. Assume a 10 percent increase in price causes quantity demanded to decrease by 18 percent. In this case, we could conclude that: A. demand is elastic. B. demand is inelastic. C. demand is unit elastic. D. there is not enough information to determine the price elasticity 6. Which of
COLLEGE OF BUSINESS EDUCATION
Principles of Economics With Land Reform and Taxation (Econ 003)
NAME : _______________________________________________ SCORE : ____________________________
MIDTERM QUIZ No. 1 (Take Home) SECTION: _____________________________
DIRECTION: Write the CAPITAL LETTER of the CORRECT ANSWER on the space provided. Any form of ERASURES is strictly not allowed.
1. If you were running a firm in a perfectly competitive industry you would be spending your time making decisions on A. how much of each input to use. B. how much to spend on advertising. C. what price to charge. D. the design of the product. 2. Market power is: A. a firm's ability to sell any amount of output it desires at the market-determined price. B. a firm's ability to charge any price it likes. C. a firm's ability to monopolise a market completely. D. a firm's ability to raise price without losing all demand for its product. 3. Which of the following would not be considered a legitimate measure of demand elasticity? A. Price elasticity of demand B. Income elasticity of demand C. Supply elasticity of demand D. Cross-price elasticity of demand 4. The price elasticity of demand is calculated by dividing: A. he absolute change in quantity demanded by the absolute change in price. B. the percentage change in quantity demanded by the percentage change in price. C. the absolute change in quantity demanded by the percentage change in price. D. the percentage change in quantity demanded by the absolute change in price. 5. Assume a 10 percent increase in price causes quantity demanded to decrease by 18 percent. In this case, we could conclude that: A. demand is elastic. B. demand is inelastic. C. demand is unit elastic. D. there is not enough information to determine the price elasticity 6. Which of