Free Printable Elasticity of demand

Worksheets

Elasticity of demand

Total questions: 20

Worksheet time: 13mins

Name

Class

Date

Demand is almost always more elastic at higher prices and less elastic at lower prices.

True

False

Elasticity of demand is greater in the short-run

true

false

Demand is unit elastic if it is less than 1.0

True

False

Suppose that elasticity of demand of socks is 0.7. If the price of socks is reduced by 10%, how will sales be effected?

sales will grow by more than 10%

Sales will grow by 10%

Sales will grow by less than 10%

Sales will decrease by 10%

If the price on a product goes up the quantity demanded will go down. This follows the economic theory of:

Law of Demand

elasticity

income effect

None of the above

The formula for calculating elasticity of demand is:

The % change in price over the % change in quantity demanded

The % change in quantity demanded over the % change in price

The change in price over the change in quantity demaned

The change in quantity demanded over the change in price

The elasticity of demand for tissues is 0.66. This means the demand for tissues is

elastic

unit elastic

inelastic

really expensive

which of the following is not a determinant of demand elasticity?

availability of substitutes

share of consumer's budget spend on good

duration of adjustment period

government spending

If the price on a product goes up the quantity demanded will go down. This follows the economic theory of:

Law of Demand

elasticity

Ceteris Paribus

Both A and C

10.

The following is a factor that will not cause the demand curve to shift:

Advertising

Population

Price

Consumer expectations

11.

Consuming more of one good because of a change in price of another good is known as the

income effect

substitution effect

elasticity effect

demand effect

12.

Which factor causes the demand curve to shift in the following situation: Bobby graduated from college and got a good job, so he decided to buy a new 2016 Passat.

income

population

consumer tastes & advertising

prices of related goods

13.

What does it mean?

Ed = 0

Perfectly inelastic demand

Inelastic demand

Unitarily elastic demand

Elastic demand

Perfectly elastic demand

14.

What does it mean?

Ed = 1

Perfectly inelastic demand

Inelastic demand

Unitarily elastic demand

Elastic demand

Perfectly elastic demand

15.

What does it mean?

Ed = ∞

Perfectly inelastic demand

Inelastic demand

Unitarily elastic demand

Elastic demand

Perfectly elastic demand

16.

What does it mean?

Ed > 1

Perfectly inelastic demand

Inelastic demand

Unitarily elastic demand

Elastic demand

Perfectly elastic demand

17.

What does it mean?

Ed < 1

Perfectly inelastic demand

Inelastic demand

Unitarily elastic demand

Elastic demand

Perfectly elastic demand

18.

What does it mean?

% change in Qd = % change in P

Perfectly inelastic demand

Inelastic demand

Unitarily elastic demand

Elastic demand

Perfectly elastic demand

19.

Describe your demand for a product if you buy the same amount of it or just a small amount less after a large price increase.

elastic

unitary elastic

inelastic

hyperelastic

20.

Why does demand generally become more elastic over time?

People don't change their shopping behavior over time.

Few substitutes become available.

People buy more products over time.

People have time to find substitutes and change behaviors.

100 %

Elasticity of demand

Total questions: 20

Worksheet time: 13mins

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