Elasticity of Demand & Supply

Demand is unit elastic if it is less than 1.0

• True
• False

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

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

Elasticity refers to

• how producers of goods and services react to price changes

• how consumers of goods and services react to price changes

• how far a supply of scarce goods can be stretched

• how often the price of a good or service changes when quantity demanded changes

A complement example would be all except

• butter and margarine 
• peanut-butter and jelly
• flashlight and batteries 
• cameras and film 

Products that tend to be used together 

• complements 
• substitutes
• goods
• needs 

Describes very little a change in demand with a large change in price 

• elastic 
• inelastic 
• demand curve 
• price 

Products that can be used in a place of other products 

• substitutes 
• goods 
• substitution effect 

An increase in demand will shift the demand curve...

• Right 
• Left 
• no movement 
• no change