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WorksheetsElasticity
Total questions: 10
Worksheet time: 12mins
What does price elasticity of demand measure?
The degree of responsiveness of quantity demanded to changes in price
The degree of responsiveness of quantity supplied to changes in price
The degree of responsiveness of quantity demanded to changes in income
The degree of responsiveness of quantity supplied to changes in income
What is the degrees of responsiveness if the value for price elasticity of demand for Good A is 1.75?
Perfectly inelastic
Inelastic
Unitary elastic
Elastic
What factor influence the price elasticity of demand?
Mobility and availability of resources
Proportion of income spent on a product
Level of technology
All of the above
What does income elasticity of demand measure?
The degree of responsiveness of quantity demanded to changes in price
The degree of responsiveness of quantity supplied to changes in price
The degree of responsiveness of quantity demanded to changes in income
The degree of responsiveness of quantity supplied to changes in income
If Daniel's income rises from RM1,000 to RM1,600, his demand for Good X increases from 30 units to 65 units per month and the income elasticity of demand for Good X is approximately 1.9441. What type of good is Good X?
Normal good
Inferior good
Luxury good
Necessity
The quantity demanded for Good A was 300 units when the price for Good B was USD3.50, and this month the price for Good B increased to USD5 and the quantity demanded for Good A decreased to 75 units.
The cross-elasticity of demand is -1.75. What is the relationship between the two goods?
Independent
Substitute
Complementary
Not related
What factor influence the price elasticity of supply?
Level of income
Availability of substitutes
Surplus capacity
All of the above
What is the degrees of responsiveness if the value for price elasticity of supply for Good A is 1.176?
Perfectly inelastic
Inelastic
Unitary elastic
Elastic
What is the relationship between Goods A and B if the cross-elasticity of demand is positive?
Complement
Independent / Not related
Substitute
Cannot be determined
What is the importance of income elasticity?
Determine the types of market
Promotional strategy
Forecasting current demand
All of the above
