Elasticity of Demand Quiz

What does a higher elasticity of demand indicate about consumer response to price changes?

• Consumers are less responsive to price changes

• Consumers are more responsive to price changes

• No impact on consumer response to price changes

• Consumers are unpredictable

If the elasticity coefficient of demand is greater than 1, how is demand affected?

• Perfectly inelastic demand

• Unit elastic demand

• Elastic demand

• Inelastic demand

What does an elasticity coefficient of exactly 1.0 indicate about demand?

• Demand is unit elastic

• Demand is perfectly elastic

• Demand is inelastic

• Demand is perfectly inelastic

Which range of elasticity coefficient indicates inelastic demand?

• Between 0 and 1.0

• Greater than 1

• Exactly 1

• Less than 0

What happens to the elasticity of demand when there are many substitutes for a product?

• It becomes elastic

• It becomes inelastic

• It remains unchanged

• It cannot be determined

Is the demand for Good X elastic or inelastic between the price range of $9.00 and $10.00?

• Elastic

• Inelastic

• Unitary elastic

• Perfectly elastic

What does it mean for a good to be elastic?

• The quantity demanded changes significantly with a price change

• The quantity demanded does not change significantly with a price change

• The price does not affect the quantity demanded

• The good has many substitutes

What type of demand would there be for a good that had no substitutes?

• Elastic

• Inelastic

• Unitary elastic

• Perfectly elastic

If the price of Good Y, a complementary good, increases, which way would the demand curve of Good X shift?

• Left

• Right

• Upward

• Downward

What happens to the demand curve of Good X if the price of Good Y, a substitute good, increases?

• It shifts left

• It shifts right

• It remains unchanged

• It becomes perfectly elastic