Microeconomics Exam 1 Rutgers University Skydel questions and answers 2025

Microeconomics
Exam 1: Rutgers
University
Skydel questions
and answers
2025
Midpoint Method for Elasticity - answer %change in
quantity/supply demanded/%change in price


Inelastic - answer low responsiveness of quantity
demanded or quantity supplied to price changes,
elasticity less than one


Elastic - answer high responsiveness of quantity
demanded or quantity supplied to changes in price,
elasticity greater than one

, Unitary - answer proportional responsiveness of
either quantity demand or quantity supplied,
elasticity equal to one


Are price elasticities negative or positive? - answer
negative, take absolute value


Demand Curve - answer Quantity Demanded vs.
Price, usually straight line


Is the Elasticity the Slope? - answer No, because
elasticity deals with percents so it is different
everywhere along the demand curve.


Law of Demand - answer When price increase,
quantity demand decreases and vice versa


Elasticity - answer an economics concept that
measures the responsiveness of one variable to
changes in another variable


Price Elasticity of Demand/Supply - answer ratio
between the percentage change in the quantity
demanded (Qd) or supplied (Qs) and the
corresponding percent change in price