WorksheetsElasticity
Total questions: 10
Worksheet time: 7mins
Suppose the price of burgers increases from $2 to $3 each. The degree to which the quantity demanded responds to this price increase depends on the
price elasticity of demand.
price elasticity of supply.
income elasticity of demand.
cross elasticity of demand.
The price elasticity of demand is calculated as the absolute value of the
percentage change in quantity demanded divided by the percentage change in price.
percentage change in price divided by the percentage change in quantity demanded.
change in quantity demanded divided by the change in price.
change in price divided by the change in quantity demanded.
The price elasticity of demand for furniture is estimated at 1.3. This value means a one percent increase in the
price of furniture will increase the quantity of furniture demanded by 1.3 percent.
price of furniture will decrease the quantity of furniture demanded by 1.3 percent.
quantity of furniture demanded will decrease the price of furniture by 1.3 percent.
quantity of furniture demanded will increase the price of furniture by 1.3 percent.
The price elasticity of demand can range between
0 to 1
negative infinity and infinity.
zero and infinity.
negative one and one.
If the quantity demanded changes by a relatively small amount for a given change in price, then demand is
perfectly inelastic.
perfectly elastic.
elastic.
inelastic.
A good with a vertical demand curve has a price elasticity of demand that ________ .
is equal to 1
is equal to infinite
is equal to zero
varies between 0 and 1
Demand is price elastic if a
relatively large price increase leads to a relatively small decrease in the quantity demanded.
relatively small price increase leads to a relatively large decrease in the quantity demanded.
price increase leads to a decrease in the quantity demanded.
price increase leads to an increase in the quantity demanded.
The price elasticity of demand when the price of a popsicle increase from $0.30 to $0.50 and the quantity decrease from 25 to 15 is ________.
0
1
0.5
2
The elasticity of supply does NOT depend on
resource substitution possibilities.
the fraction of income spent on the product.
the time elapsed since the price change.
none of the above because all of the factors listed affect the elasticity of supply.
When demand is ________, a decrease in price ________ total revenue.
elastic; decreases
inelastic; decreases
unit elastic; increases
elastic; does not change
