Elasticity of Supply and Demand

When the % change in price is lesser than the % change in quantity demanded, the demand is said to be:

• Elastic

• Inelastic

• Unitary

• Perfectly elastic

At a given price, quantity demanded can change infinitely. The demand is:

• Elastic

• Inelastic

• Unitary

• Perfectly elastic

The price elasticity of supply measures:

• The degree of responsiveness of quantity supplied to variations in price.

• The degree of responsiveness of quantity demanded to variations in price.

• The price of commodity at which buyers are willing to buy.

• The quantity of goods that buyers are willing to buy.

The coefficient of demand relates a percentage change in quantity demanded of Good A in response to a percentage change in the price of Good B:

• Price elasticity of demand

• Cross elasticity of demand

• Income elasticity of demand

• Cross elasticity of supply

The responsiveness of demand/supply to a change in its determinants:

• Price elasticity

• Arc elasticity

• Point elasticity

• Elasticity

The price elasticity of demand measures:

• The degree of responsiveness of quantity supplied to variations in price.

• The degree of responsiveness of quantity demanded to variations in price.

• The price of commodity at which buyers are willing to buy.

• The quantity of goods that buyers are willing to buy.

When the % change in price is greater than the % change in quantity demanded, the demand is said to be:

• Elastic

• Inelastic

• Unitary

• Perfectly elastic

If goods X and Y are COMPLEMENTS, the which of the following could be the value of cross price elasticity of demand?

• 0

• 1

• -1

• None of the above

If goods X and Y are SUBSTITUTES, then which of the following could be the value of the cross price elasticity of demand for good Y?

• -1

• -2

• Neither -1 nor -2.

• Both -1 and -2.

A 10% increase in the price of movie ticket in SM Baliuag leads to a 15% decrease in the number of tickets sold, indicating the demand for movie ticket in SM Baliuag is:

• Elastic

• Inelastic

• Unitary

• Perfectly elastic