Econ Elasticity Quiz

If the price of a product increases and the demand remains unchanged, what can be inferred about the price elasticity of demand for this product?

• The demand is perfectly elastic.

• The demand is perfectly inelastic.

• The demand is unit elastic.

• The demand is relatively elastic.

What does a price elasticity of demand greater than 1 indicate?

• Demand is inelastic.

• Demand is unit elastic.

• Demand is perfectly inelastic.

• Demand is elastic.

At the equilibrium price, what is true?

• Quantity demanded is greater than quantity supplied.

• Quantity supplied is greater than quantity demanded.

• Quantity demanded equals quantity supplied.

• There is no relationship between quantity demanded and quantity supplied.

Which of the following would cause a shift in the demand curve for a normal good?

• A decrease in the price of the good.

• An increase in consumer income.

• A decrease in the number of sellers.

• An increase in the price of inputs.

If the price of a substitute good increases, what happens to the demand for the original good?

• It decreases.

• It increases.

• It remains unchanged.

• It becomes perfectly elastic.

What happens to the equilibrium price when there is an increase in demand, assuming supply remains constant?

• It decreases.

• It increases.

• It remains unchanged.

• It becomes perfectly elastic.

Which of the following is a determinant of demand?

• Production technology

• Number of sellers

• Tastes and Preferences

• Cost of inputs

If a good has many close substitutes, what is likely true about its price elasticity of demand?

• It is perfectly inelastic.

• It is relatively inelastic.

• It is relatively elastic.

• It is unit elastic.

Match the following

• Inelastic

• Large Portion of Income

• Elastic

• Luxury

• Inelastic

• Short Amount of Time

• Elastic

• Needs

Which of the following items is Inelastic?

• Potato Chips

• Celsius Energy Drink

• Insulin

• Levi Jeans