Price Elasticity of Demand Quiz

What is price elasticity of demand?

• Price elasticity of demand is a measure of the responsiveness of the quantity supplied of a good or service to a change in its price.

• Price elasticity of demand is a measure of the responsiveness of the quantity demanded of a good or service to a change in its price.

• Price elasticity of demand is a measure of the responsiveness of the quantity demanded of a good or service to a change in its income.

• Price elasticity of demand is a measure of the responsiveness of the quantity demanded of a good or service to a change in its quality.

How is price elasticity of demand calculated?

• By subtracting the percentage change in quantity demanded from the percentage change in price

• By adding the percentage change in quantity demanded to the percentage change in price

• By dividing the percentage change in quantity demanded by the percentage change in price

• By multiplying the percentage change in quantity demanded by the percentage change in price

If the price elasticity of demand for a good is greater than 1, it is considered to be:

• Elastic

• Unit elastic

• Inelastic

• Perfectly elastic

If the price elasticity of demand for a good is less than 1, it is considered to be:

• Elastic

• Inelastic

• Unitary

• Perfectly elastic

If the price elasticity of demand for a good is equal to 1, it is considered to be:

• Perfectly inelastic

• Elastic

• Perfectly elastic

• Unitary elastic

If the price elasticity of demand for a good is infinity, it is considered to be:

• Perfectly elastic

• Inelastic

• Unit elastic

• Perfectly inelastic

If the price elasticity of demand for a good is 0, it is considered to be:

• Inelastic

• Perfectly inelastic

• Unit elastic

• Perfectly elastic

If the price elasticity of demand for a good is between 0 and 1, it is considered to be:

• unit elastic

• elastic

• perfectly elastic

• inelastic

If the price elasticity of demand for a good is greater than 1, it is considered to be:

• Elastic

• Inelastic

• Perfectly elastic

• Unit elastic

If the price elasticity of demand for a good is equal to 1, it is considered to be:

• Perfectly elastic

• Unit elastic

• Elastic

• Inelastic