Elasticity Review

Which one is Demand Curve?

• 
• 
• None of the answers is correct

Which one is Supply Curve?

• 
• 
• None of the answers is correct

Which graph indicates an increase in demand?

• D"

• D'

• None of the answers is correct

• All correct

Which graph indicates a decrease in supply?

• S"

• S'

• None of the answers is correct

• All correct

Demand is elastic if...

• ED > 1

• ED < 1

• ES > 1

• ES < 1

Demand is inelastic if...

• ED > 1

• ED < 1

• ES > 1

• ES < 1

Supply is elastic if...

• ED > 1

• ED < 1

• ES > 1

• ES < 1

Supply is inelastic if...

• ED > 1

• ED < 1

• ES > 1

• ES < 1

Yesterday, the price of the bag was $1800. Today, the price of the bag is $1980.

When the price is $1800, the demand is 1200 units. While, when the price is $1980  the demand is 1260 units.

Now, calculate the elasticity of the demand of the bag!

• 5

• 0.05

• 0.5

• 1

Yesterday, the price of the tea was $6. Today, the price of the tea is $9.

When the price is $6, the supply is 200 units. While, when the price is $9 the supply is 350 units.

Is it elastic or inelastic?

• elastic

• inelastic