Review Quiz in PrinEco

How much the quantity demanded of a good responds to a change in the price of that good?

• Elasticity

• Elasticity of Demand

• Elasticity of Supply

• None of the choices are correct.

When the demand curve is flatter, the elasticity of demand will likely be

• Elastic

• Inelastic

• Unit Elasticity

• Perfectly Inelastic

When demand quantity changes even without a change in the price, the elasticity of the demand is

• Elastic

• Inelastic

• Perfectly Elastic

• Perfectly Inelastic

For a price increase, if demand is inelastic, the total revenue will

• Decrease

• Increase

• No change

When demand is inelastic, a price increase causes revenue to _________.

• Fall

• Rise

• Remain constant

Which is not an inelastic good?

• Necessities

• Few Substitutes

• Luxury Items

• Unique or Coveted Items

Which of the following is not an elastic good?

• Electronics

• Soft drinks

• Prescription Drugs

• Clothing

If the supply curve is steep, then the value elasticity of supply would likely be _____________.

• Elastic

• Inelastic

• Unit Elasticity

• Perfectly Elastic

When the seller's price elasticity is relatively high, the supply curve is ______________.

• Horizontal

• Vertical

• Relatively Flatter

• Relatively Steep

Measures how much demand for one good responds to changes in the price of another good.

• Income Elasticity

• Demand Elasticity

• Price Elasticity

• Cross-Price Elasticity