Elasticity of Demand

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

The elasticity of demand for tissues is 0.66. This means the demand for tissues is

• elastic
• unit elastic
• inelastic
• really expensive

Describe your demand for a product if you buy the same amount of it or just a small amount less after a large price increase.

• elastic

• unitary elastic

• inelastic

• hyperelastic

Why does demand generally become more elastic over time?

• People don't change their shopping behavior over time.

• Few substitutes become available.

• People buy more products over time.

• People have time to find substitutes and change behaviors.

which of the following goods is the most price elastic?

• Televisions
• Qtips
• Shoes
• Cars

For diabetics, insulin has inelastic demand because

• It is a necessity 
• Its cost is prohibitive
• Of consumer tastes
• The price of related goods 

Coffee is more likely to be have

• Inelastic Demand
• Elastic Demand

If a good is a necessity it is more likely to have

• Inelastic Demand
• Elastic Demand

If substitutes are not readily available for a good or service its has

• inelastic demand
• elastic demand