Price Elasticity, Income elasticity and Cross elasticity

What does Price elasticity measure?

• The quantity demanded of a good and its change in price

• The overall demand of a good and its change in price

• The quantity supplied of a good and its change in price

• The surplus of a good and the change in price of that good

On a market supply and demand graph the horizontal axis determines what?

• Price

• Quantity

• Supply

• Demand

PED value 0, what does it means?

• Unit Elastic

• Elastic

• Perfectly Inelastic

• Inelastic

Ped value -1, What does it mean?

• Unit Elastic

• Perfectly Inelastic

• Elastic

• Inelastic

On a demand and supply graph, an increase in demand causes the demand curve which way?

• Shift from left to right

• Shift from the top to the bottom

• Shift from right to left

• Nothing shifts demand

The PED formula

• % change in quantity demand/% change in price

• % change in price/ % change in demand

• % change in supply/% change in price

• change in quantity demand/change in price

What does the term 'elasticity' attemp to measure?

• The formula that specifies the linear equation between two variables

• The responsiveness of a variable to decrease only in the value of another varible

• The responsiveness of a variable to changes in another variable

• The responsiveness of a variable to incresaes only in the valueof another

According to law of supply, when prices increase what happens?

• Quantity demanded decreases

• Quantity demanded increases

• Quantity supplied increases

• Quantity supplied decreases

The government agrees to pay the difference between the price floor, ceiling and equilibrium?

• Tariff

• Quota

• Subsidy

• Protectionism

The extent to which the total spending for an item will fluctuate with changes in supply?

• Elasticity of demand

• Inelasticity of demand

• Elasticity of pricing

• Elasticity of supply