4-3 Elasticity of Demand Quiz

What does Elasticity of Demand show?

• The amount of goods supplied

• Changes in consumer income

• How buyers react to price changes

• The satisfaction from a good

If a good has elastic demand, what happens when the price changes?

• Buyers' demand stays the same

• Buyers change their demand a lot

• Buyers only buy less if the price rises

• Buyers only buy more if the price falls

What does it mean if demand is inelastic?

• Demand drops a lot when price goes up.

• Demand rises a lot when price goes down.

• Demand stays about the same even if price goes up a lot.

• Demand changes a lot with consumer preferences.

What does it mean if demand is "Elastic"?

• Demand stays the same even if price changes

• Demand increases a lot with a small price increase

• Demand decreases a little with a big price increase

• Demand changes a lot when price changes

If a good has few substitutes and its price rises, what happens to its demand?

• Demand becomes elastic

• Demand will increase significantly

• Demand will decrease significantly

• Demand doesn't change very much

What does "Relative Importance" mean when spending on goods?

• The quality of the good

• The amount of your budget spent

• The brand popularity

• The availability in the market

What is a necessity?

• A good people can easily give up

• A good people always buy, even if the price goes up

• A good not essential for survival

• A good with a very high price

Which of the following is a luxury?

• Milk

• Bread

• Water

• Steak

What is the demand for necessities?

• Demand is elastic

• Demand is volatile

• Demand is inelastic

• Demand is unpredictable

What is the demand for luxuries?

• Demand is inelastic

• Demand is elastic

• Demand is constant

• Demand is non-existent