I. MULTIPLE CHOICE. Instructions: write the answer that best described the statement.

Write your
answer before each number. Please use capital letters. Any erasure/modification/alteration is
considered wrong. (2 points each)

B____1. It is designed to measure the response of quantity demanded when price changes.

A. Elasticity C. Elastic

B. Elasticity of Demand D. Elasticity of Supply

C ____2. It is the ratio or percentage in quantity to a percentage change in price along the given
supply curve.

A. Elasticity of Demand C. Price Elasticity of Supply

B. Elasticity of Supply D. Price Elasticity of Demand

D____3. It focuses on the analysis of the behavior of individual economic agents.

A. Economics C. Macroeconomics

B. Macro aspect D. Microeconomics

B____4. It refers to the number of goods and services that a consumer is willing able to purchase.

A. Concept of Supply C. Elasticity of Demand

B. Concept of Demand D. Elasticity of Supply

A____5. It refers to the number of goods and services that a firm is willing and able to offer for sale.

A. Concept of Supply C. Elasticity of Demand

B. Concept of Demand D. Elasticity of Supply

B ____6. It summarizes the transactions between the consumer and producer.

A. Circular Flow C. Interactions

B. Illustrations D. Figures

C____7. It shows that when price increases, quantity decreases.

A. Law of Supply C. Law of Demand

B. Law of the concept of Supply D. Law of the concept of Demand

A____8. It shows that when price increases, quantity increases also.

A. Law of Supply C. Law of Demand

B. Law of the concept of Supply D. Law of the concept of Demand

C____9. The relationship between price and quantity in the law of demand is _____.
A. Positive C. Indirect

B. Direct D. Negative

B___10. The relationship between price and quantity in the law of supply is _____.

A. Indirect C. Negative

B. Direct D. Positive

A___11. The elasticity coefficient is more than or greater than one.

A. Elastic C. Unitary

B. Inelastic D. Perfect Elastic

B___12. The elasticity coefficient is less than one.

A. Elastic C. Unitary

B. Inelastic D. Perfect Elastic

B___13. The elasticity coefficient is equal to one.

A. Elastic C. Inelastic

B. Unitary D. Perfect Elastic

A___14. These are factors affecting the demand to increase and decrease, EXCEPT one.

A. Raw materials C. Consumer Tastes

B. Producer Preferences D. Price of related goods

C ___15. When an elasticity value is less than one, the demand is ____.

A. Unitary C. Inelastic

B. Elastic D. None of the Above

C___16. The curve of demand points____.

A. Vertical C. Downward

B. Horizontal D. Upward

D___17. The curve of supply points_____.

A. Vertical C. Downward

B. Horizontal D. Upward

D___18. These are factors affecting the supply to increase and decrease, except one.
A. Technology C. Producers Tastes

B. Producer Preferences D. Consumer preferences

A ___19. It is the representation of the law of supply.

A. Supply Curve C. Supply Slope

B. Demand Curve D. Demand Slope

A ___20. It is the representation of the law of demand.

A. Demand Curve C. Supply Slope

B. Supply Curve D. Demand Slope

C___21. Anything that satisfied someone.

A. Needs C. Desires

B. Wants D. Willingness

C___22. A place where buyers and sellers interact together.

A. Social media C. Market

B. Business Area D. Classified Ads

D___23. It is the satisfaction derived from the consumption of a commodity.

A. Total utility C. Disutility

B. Marginal utility D. Utility

B___24. It is the change of total utility over the change of quantity.

A. Total utility C. Disutility

B. Marginal utility D. Utility

A___25. It is the foregone value when a firm is engaged in production.

A. Cost C. Revenue

B. Profit D. Interest

II. ILLUSTRATION. Graphically illustrate the following curves with their corresponding label. (10 points
each)
 1.A shift of demand to the right 2. A shift of demand to the left

Price
Price

Supply
Supply
P2
P1 New Demand P1
P2
Demand
Demand
3.A shift of supply to the right New
4. A shift of supply to theDemand
left
Q1 Q2 Quantity Q2 Q1 Quantity

Price Price
Supply New Supply

Supply
New Supply
P2
P1
P1
P2
Demand Demand

Q1 Q2 Q2 Q1 Quantity
Quantity

III. ENUMERATIVE ESSAY. Provide at least five importance of elasticity.

ATTENDED