Elasticity and Total Revenue Quiz

What does the concept of elasticity show?

• The types of products with inelastic demand

• The coefficient of elasticity

• The relationship between price and quantity

• The sensitivity of quantity to a change in price

What does a coefficient of 1 indicate in terms of elasticity?

• Unit elastic demand

• Perfectly inelastic demand

• Elastic demand

• Inelastic demand

What does a perfectly inelastic demand mean?

• The quantity changes infinitely with a change in price

• The quantity does not change with a change in price

• The quantity is sensitive to a change in price

• The quantity is insensitive to a change in price

What happens to total revenue when the demand is inelastic and the price goes up?

• Total revenue goes up

• Total revenue goes down

• Total revenue remains the same

• Total revenue becomes infinite

What happens to total revenue when the demand is elastic and the price goes up?

• Total revenue goes up

• Total revenue goes down

• Total revenue remains the same

• Total revenue becomes infinite

What does it mean if the price goes up for a product and the total revenue goes up?

• Unit elastic demand

• Elastic demand

• Inelastic demand

• Perfectly inelastic demand