Exploring Elasticity Concepts in Economics

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• To increase the number of views

• To make the videos go viral

• To help the channel grow and support his livelihood

• To get more likes on the videos

Which of the following is NOT one of the four types of elasticity covered in the video?

• Cross Price Elasticity of Demand

• Elasticity of Supply

• Elasticity of Demand

• Price Elasticity of Supply

What does a decrease in total revenue when the price increases indicate about the demand?

• The demand is inelastic

• The demand is perfectly inelastic

• The demand is elastic

• The demand is unit elastic

How is the elasticity of demand coefficient calculated?

• Change in quantity divided by change in price

• Change in price divided by change in quantity

• Percent change in quantity divided by percent change in price

• Percent change in price divided by percent change in quantity

What does a positive elasticity of supply coefficient indicate?

• There is no relationship between price and quantity supplied

• The supply is unit elastic

• The supply is inelastic

• The supply is elastic

Why can't the total revenue test be used to determine the elasticity of supply?

• Because total revenue always decreases with price

• Because total revenue is not related to supply

• Because total revenue always increases with price

• Because total revenue and price are directly related

What does a negative cross price elasticity indicate about two goods?

• They are complements

• They are substitutes

• They are inferior goods

• They are unrelated

If the price of apples increases and the quantity demanded of peaches also increases, what does this imply?

• Apples and peaches are unrelated

• Apples and peaches are substitutes

• Apples and peaches are complements

• Apples are an inferior good

What does a negative income elasticity of demand indicate about a good?

• It is a necessity

• It is a normal good

• It is a luxury good

• It is an inferior good

What does a zero income elasticity of demand mean?

• The good is a normal good

• The good is an inferior good

• The good is unrelated to income changes

• The good is a luxury