WorksheetsElasticity
Total questions: 10
Worksheet time: 21mins
The price elasticity of demand is a measure of
the equilibrium price of a product.
buyers' responsiveness to changes in the price of a product.
the amount of a product purchased when income increases.
whether a product is a substitute or a complement.
To determine the price elasticity of demand, we
need information on consumers' incomes.
need to know how much is available.
compare the percentage change in the quantity demanded to the percentage change in the price.
compare the change in the quantity to the change in price.
Suppose the price of a box of cereal rises from $4 to $6. Using the midpoint method, what is the percentage change in price?
50 percent
40 percent
33 percent
67 percent
Suppose the local university charges $85 per credit hour. If tuition increases from $85 to $93 per credit hour, using the midpoint method, what is the percentage change in price?
8.99 percent
8.00 percent
9.41 percent
8.62 percent
When the percentage change in the quantity demanded exceeds the percentage change in price, then demand is
inelastic.
unit elastic.
elastic.
irrelevant.
If the percentage change in price is 10 percent and the demand is elastic, then the percentage change in the quantity demanded
is greater than 0 percent but less than 10 percent.
is larger than 10 percent.
equals 0 percent.
equals 10 percent.
If a substitute good is easy to find, then demand for a good is
elastic.
inelastic.
unit elastic
perfectly elastic
The price of a bag of pretzels rises from $2 to $3 and the quantity demanded decreases from 100 to 60. At the midpoint between these two prices, what is the price elasticity of demand?
1.0
1.25
1.90
40.0
The price elasticity of supply measures
the percentage change in supply from a percentage change in demand.
the extent to which the quantity supplied of a good changes when the price of a good changes, other things remaining the same
the slope of the supply curve.
how the equilibrium price changes in response to a change in the equilibrium quantity supplied.
If the percentage change in the price of a good exceeds the percentage change in the quantity supplied, then the supply is
elastic
inelastic
unit elastic
perfectly elastic
