Economics Review

Which of the following is likely to have the most elastic demand?

• A good with a vertical demand curve

• Cigarettes

• Life-sustaining medication

• Dr. Pepper

According to the graph, when a 22% increase in price leads to a 67% increase in quantity supplied, you know that supply is

• elastic

• inelastic

• unit elastic

• perfectly elastic

According to the graph, a 22% increase in price leads to a 10% increase in quantity supplied, you know that supply is

• elastic

• unit elastic

• inelastic

• perfectly inelastic

What's the status of your college applications?

• complete

• almost complete

• haven't started

• what's college?

If the price of gas goes up and total revenue goes up, what does that say about the elasticity of gas?

• Gas is elastic

• Gas is inelastic

Goods tend to have a more __________ demand over a longer period of time.

• elastic

• inelastic

• solid

• generous

What is elasticity?

• the means by which total revenue is measured

• a measure in the responsiveness to a change is price

• the stretchy-ness of a rubber band

The formula for PES is:

• % Δ P / % Δ QS

• % Δ P / % Δ QS x 100

• % Δ QS / % Δ P x 100

• % Δ QS / % Δ P

What does the following diagram illustrate?

• Elastic demand

• Elastic supply

• Inelastic demand

• Inelastic supply

Which of the following would NOT cause a demand curve to shift?

• a change in a consumer's income level
• a change in population
• a change in a consumer's expectations
• a change in the price of a product.