Free Printable The Elasticity of Supply and Demand

1.

Define the meaning of price elasticity of supply

a)

$\frac{\%\Delta\ Equilibrium}{\%\Delta\ \Pr ice}$

b)

$\frac{\%\Delta\Pr ice}{\%\Delta\ Quantity\ \sup ply}\$

c)

$\frac{\%\Delta Quantity\ \sup ply}{\%\Delta\Pr ice}$

2.

What is the formula to find Price elasticity of demand

a)

$\Pr ice\ \times Quantity$

b)

$\frac{\%\Delta\ Quantity\ demand}{\%\Delta\ \Pr ice}$

c)

$\sqrt[3]{\Pr ice\ x\ Quantity\ demand}$

3.

Describe the diagram correctly

a)

Price elasticity of supply > 1

b)

Price elasticity of demand > 1

c)

Price elasticity of supply = 0

d)

Price elasticity of demand < 1

4.

Pick a correct product that describe the diagram

a)

Smartphone

b)

insulin

c)

rice

d)

luxury fan

5.

If the price of wheat increase during the inelastic demand, what happen to its total revenue?

a)

increase

b)

decrease

c)

nothing change

6.

According to the diagram, what will happen to the total revenue if the price rises?

a)

decrease

b)

increase

c)

remain contant

7.

Name this type of elasticity if the price elasticity of demand is equal to 1

a)

Elastic demand

b)

Inelastic demand

c)

Perfectly elastic demand

d)

Unitarily elastic

8.

Pick the correct formula to calculate revenue

a)

$price^2\ x\ quantity^2$

b)

$price\times Quantity$

c)

$\sqrt[3]{price\div quantity}$

d)

$\frac{\%Quantity}{\%\Pr ice}$

9.

Pick an item that has higher probability to be perfectly inelastic supply

a)

cooking oil

b)

soap

c)

coffee drink

d)

diamond ring

10.

If Farm Fresh company has greater spare production capacity, means that the supply is sensitive to price changes. Determine its elasticity of supply

a)

inelastic supply

b)

elastic supply

c)

unitarily supply

d)

perfectly elastic supply

11.

Pick situation that reflects the type of perfect inelastic demand

a)

Low level of finished products

b)

market period such as bit coin market

c)

Greater number of buyers

d)

Technology used

12.

Predict the elasticity of demand for cigarettes if the consumer has a habit of smoking frequently

a)

elastic demand

b)

inelastic demand

c)

unitarily demand

d)

elastic supply

13.

Identify the correct factors affecting the elasticity of demand

a)

Capacity of production

b)

Number of uses

c)

Level of product price

d)

Revenge

14.

Let's say, Company A is a producer that manufactures a lot of wheat based products such bread, flour, food, cookies etc. From this statement, determine the elasticity of its supply

a)

inelastic supply

b)

elastic supply

c)

perfectly elastic

15.

Pick situation that shows the situation of inelastic supply

a)

farmers are easy to switch the farming of paddy into vegetable

b)

limited spare production capacity

c)

Greater stocks of finished products and components

d)

Long period for the existence of product in the market

16.

Pick the situation that shows the elastic demand

a)

Total expenditure is less on certain products

b)

limited number of uses

c)

Low level income

d)

Expensive products

17.

Choose the situation below that show the inelastic demand

a)

Expensive products in the market

b)

Time period is longer for product

c)

nature of commodities is necessary like food

d)

Greater availability of substitutes

18.

below is the password for today class attendance

a)

imissyou

b)

imissyou

c)

imissyou

d)

imissyou

The Elasticity of Supply and Demand

Total questions: 18

Worksheet time: 18mins

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