WorksheetsElasticities Practice
Total questions: 8
Worksheet time: 4mins
The Price Elasticity of Demand (PED) of strawberries is -1.8, and the PED of fruits is -0.4. Which of the following statements is true?
The demand for fruits is price-elastic.
An increase in the price of strawberries will lead to a more than proportionate fall in the demand for strawberries.
The demand for fruits is more price-elastic than strawerries.
The demand for strawberries is price inelastic.
The price of Good X has increased recently from $2 to $4. As a result, the number of units supplied, which was originally 20 units, has now been raised to 30 units.
What is the price elasticity of supply of Good X?
0.2
0.5
1
2
If demand for a good is price elastic, which of the following is true?
a rise in price will raise total revenue.
a fall in price will raise total revenue.
a fall in price will lower the quantity demanded
none of the above
The Price Elasticity of Demand coefficient of a normal good tends to be
Smaller in the long run than the short run
Smaller in the short run than the long run
larger in the short run than the long run
remain constant
A product's price elasticity of demand changes from -0.8 to -0.5.
What does this mean?
A rise in price will now cause demand to now extend.
A rise in price will now cause total revenue to fall.
The product will now be less responsive to changes in its price.
The product is now more price elastic.
A product has a price elasticity of supply of 0.8, and its price is $60.
By how much does price have to increase to cause supply to rise from 200 to 240?
$8
$15
$30
$48
Which of the following is likely to have a Price Elasticity of Supply of 2?
Canned Tuna
Crude oil
Commercial flights
Exotic leather
Price Elasticity of Demand is always ________________ due to the __________________________.
Negative;
Law of Supply
Negative;
Law of Demand
Positive;
Price Mechanism
Positive; Substitution Effect
