Elasticity Exit Ticket

Front

Demand is almost always more elastic at higher prices and less elastic at lower prices. True or False?

Back

True

Front

Demand is unit elastic if it is less than 1.0

Back

False

Front

The formula for calculating elasticity of demand is:

Back

The % change in quantity demanded over the % change in price

Front

Which of the following is not a determinant of demand elasticity? Availability of substitutes, share of consumer's budget spent on good, duration of adjustment period, government spending

Back

government spending

Front

If the price on a product goes up the quantity demanded will go down. This follows the economic theory of: Law of Demand, elasticity, Ceteris Paribus, Both A and C

Back

Both A and C

Front

What does it mean? Ed = 0

Back

Perfectly inelastic demand

Front

What does it mean? Ed = 1

Back

Unitarily elastic demand

Front

What does it mean? Ed = ∞ Options: Perfectly inelastic demand, Inelastic demand, Unitarily elastic demand, Elastic demand, Perfectly elastic demand

Back

Perfectly elastic demand

Front

What does it mean? Ed > 1

Back

Elastic demand

Front

What does it mean? Ed < 1

Back

Inelastic demand