Price Elasticity of Demand Quiz

The price of a product increases from $10 to $12, and the quantity demanded decreases from 100 units to 90 units. What is the PED?

• - 1.25

• - 1.0

• 0.5

• - 2.5

If the PED is greater than 1, demand is:

• Elastic

• Inelastic

• Unitary

• Perfectly inelastic

A product’s price decreases from $60 to $45, and the quantity demanded increases from 500 to 700. What is the PED?

• 0.9

• -1.6

• -1.2

• - 2.0

The price of apples increases by 25%, and the quantity demanded decreases by 5%. What is the degree of elasticity?

• 0.2

• 0.5

• 0.8

• 1.25

If a 10% increase in price leads to a 15% decrease in quantity demanded, what type of demand is this?

• Inelastic

• Elastic

• Unitary

• Perfectly elastic

The price of a book decreases from $20 to $15, and the quantity demanded increases from 100 units to 250 units. Calculate the PED.

• 0.5

• 0.75

• 6.0

• 1.25

Which of the following indicates unitary elasticity?

• PED = 0

• PED = 1

• PED > 1

• PED < 1

A 50% increase in the price of a product causes the quantity demanded to fall by 25%. What is the PED?

• 0.25

• 0.5

• 0.75

• 1.0

The price of coffee increases from $4 to $6, and quantity demanded decreases from 200 cups to 150 cups. What is the PED?

• 0.75

• 1.0

• 0.5

• 2.0

The original price of a product is $100, and the original quantity demanded is 50 units. The price decreases to $70, and the quantity demanded increases to 65 units. Calculate the Price Elasticity of Demand (PED) and identify its degree.