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Price elasticity on demand

Total questions: 11

Worksheet time: 6mins

Name
Class
Date
1.

Price Elasticity on Demand shows

a)

how demand changes if the price changes

b)

how price changes if demand changes

c)

how prices change

2.

Demand is

a)

how much people pay for a product

b)

when customers want to pay this price for a product

c)

when customers try to get discounts

3.

Substitutes are products that satisfy

a)

different needs and wants

b)

same needs and wants

4.

Select substitutes

a)

Gucchi bag and Carrefour bag

b)

Pepsi and Cocal Cola

c)

Ferrari and Nissan

5.

If the price INCREASES, the demand_______.

a)

increases

b)

remains the same

c)

decreases

6.

If demand is ELASTIC,

a)

it reacts a lot to price changes

b)

it doesn't react to price changes

c)

price change leads to an equal change in demand

7.

Select a product with ELASTIC demand

a)

petrol

b)

make up

c)

electricity bill

8.

Unitary Elastic Demand

a)

demand reacts a lot to price changes

b)

change in price leads to an equal change in demand

c)

demand doesn't react to price changes

9.

Select a Unitary Elastic product

a)

bread

b)

electricity bill

c)

make up

10.

INELASTIC demand

a)

demand reacts a lot to price changes

b)

change in price leads to equal change in demand

c)

demand doesn't react a lot to price changes

11.

INELASTIC demand example:

a)

bread

b)

electricity bills

c)

make up