Demand

Demand is elastic when a given change in price causes a relatively smaller change in quantity demanded.​

• True

• False

The sole determinate of elasticity is the answer to this question: Can the purchase be delayed?​

• True

• False

To estimate elasticity, add the direction of a price change to the direction of the change in total revenue, or total expenditures.

• True

• False

Demand elasticity is the extent to which a change in price causes a change in the quantity demanded.

• True

• False

Demand is unit elastic when a given change in price causes a proportional change in quantity demanded.​

• True

• False

What is the main cause of a change in quantity demanded?

• substitution

• changes in revenue

• change in price

• the income effect

What is the relationship between income and demand?

• A decrease in income increases demand.

• A decrease in price decreases income.

• An increase in price increases income.

• An increase in income increases demand.

​Why is a demand curve downward sloping?

• because quantity demanded increases as price decreases

• because of the natural elasticity of the market

• because it shows how increasing incentives changes demand

• because it reflects the desire, ability, and willingness of consumers

Which product most likely has a demand that is inelastic?

• a meal at a restaurant

• green beans

• a vital medicine

• a vacation

​A change in quantity demanded is represented by ______

• Movement along the demand curve.

• A shift of the demand curve.

• Substitution.

• Complements.