ECO162 ONLINE GAME

The meaning of inelastic is a change in the price of the goods that causes a bigger percentage change in quantity demanded

• TRUE

• FALSE

 The price elasticity of demand measures the responsiveness of the quantity demanded to change in price.

• TRUE

• FALSE

If the price of goods X increases from RM95 to RM200 and the quantity of demand decreases from 100 to 65 units. What is the price elasticity of demand for goods X?

• A) 0.6

• B) 1.2

• C) 0.3

• D) 1.3

 Price elasticity of demand is defined as _____

• a percentage change of quantity demanded as income changes.

•  a percentage change in quantity demanded as related price changes. 

• a percentage change of quantity supplied as the price changes.

• a percentage change in quantity supplied as related price changes.

 A 56% increase in the quantity demanded fried chicken results from a 20% decline in the price of the food. The price elasticity of demand for fried chicken is ____

• 2.8

•  3.8

• 2.5

• 3.5

Luxury goods most likely become inelastic in terms of elasticity of demand.

• TRUE

• FALSE

People tend to become more inelastic when the factor that determines the price in the elasticity of demand is related to the habits factor

• TRUE

• FALSE

Which of the following factors is a determinant of price elasticity of demand?

• Population

• Existence of substitute goods

• Numbers of buyers

• Future price expectation

 Consumers buy candy bars regardless of the price. What is the consumer’s elasticity of demand for candy bars?

• Infinity.

• -4

• 0

• -1

When the income elasticity of demand is less than one, but more than zero, the goods will be considered as a …..

• Essential goods

• Luxury goods

• Inferior goods

• Normal goods