elasticity of demand

Demand is almost always more elastic at higher prices and less elastic at lower prices.

• True
• False

If the price on a product goes up the quantity demanded will go down. This follows the economic theory of:

• Law of Demand
• elasticity
• income effect
• None of the above

The formula for calculating elasticity of demand is:

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

which of the following goods is the most price elastic?

• Televisions
• Qtips
• Shoes
• Cars

What does it mean?

Ed > 1

• Perfectly inelastic demand

• Inelastic demand

• Unitarily elastic demand

• Elastic demand

• Perfectly elastic demand

What does it mean?

Ed < 1

• Perfectly inelastic demand

• Inelastic demand

• Unitarily elastic demand

• Elastic demand

• Perfectly elastic demand

Consuming more of one good because of a change in price of another good is known as the 

• income effect
• substitution effect
• elasticity effect
• demand effect

This occurs when you feel like you have less money when the price of a good rises.

• Income Effect
• Substitution Effect
• Demand Effect
• Inflation Effect

Which economic concept is defined as the measure of how responsive consumers are to a price change?

• consumer expectations
• consumer taste
• decreasing marginal utility
• elasticity of demand

What is a complement?

• When the price of one good increases, the demand for the other decreases
• When the price of one good increases, the price of the other increases
• When the demand of one good increases, the price of the other decreases
• When the supply of one good increases, the demand of that good increases