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WorksheetsElasticity of Demand
Total questions: 15
Worksheet time: 7mins
Identify types of price elasticity of demand
Elastic
Inelastic
Unitary Elastic
Perfect Elastic
Identify types of price elasticity of demand
Elastic
Inelastic
Unitary Elastic
Perfect Elastic
Identify types of price elasticity of demand
Elastic
Inelastic
Unitary Elastic
Perfect Elastic
Identify types of price elasticity of demand
Elastic
Inelastic
Unitary Elastic
Perfect Elastic
Identify degrees of price elasticity of demand
Ed = 1
0 < Ed < 1
Ed = ∞
Ed = 0
Identify degrees of price elasticity of demand
Ed = 0
1 < Ed < ∞
Ed = 1
0 < Ed < 1
The price elasticity of demand is a measure of the:
Steepness or slope of a demand curve
Absolute changes in quantity demanded and price
Responsiveness of quantity demanded to a change in price
Sensitivity of the quantity demanded for one good to a change in the price of another good
If the price elasticity of demand for a good is .75, the demand for the good can be described as:
Normal
Elastic
Inferior
Inelastic
The larger the coefficient of price elasticity of demand for a product, the:
larger the resulting price change for an increase in supply.
more rapid the rate at which the marginal utility of that product diminishes.
less competitive will be the industry supplying that product.
smaller the resulting price change for an increase in supply.
The price elasticity of demand is generally:
negative, but the minus sign is ignored.
positive, but the plus sign is ignored.
positive for normal goods and negative for inferior goods.
positive because price and quantity demanded are inversely related.
If the value of cross elasticity of demand is positive, goods R and S are _______________.
Milo and Vico.
car and petrol.
table and apple.
pen and ink.
When the price of Goods X increases, the demand for Goods Y increases, while the demand for Goods C decreases. What is the relationship between Goods X, Y and Z?
Goods X is substitute goods for Y and complementary goods for Z.
Goods X is complementary goods for Y and substitute goods for Z.
Goods X is a substitute for both Y and Z.
Goods X is complementary goods for both Y and Z.
If the income elasticity of good P’s is -3, good P’s is ____________.
Normal goods.
Inferior goods.
Substitute goods.
Complementary goods.
If consumer’s income increases by 10% that caused demand for pizza to increase by 12%, then pizza can be considered as ________________.
luxury goods.
necessity goods.
normal goods.
giffen goods.
If the price elasticity of demand for a good is zero, this means that the good _______________.
will still be in demand when there is an increase in price.
will not be in demand when there is an increase in price.
will be purchased in smaller quantities when there is an increase price.
will be purchased in the same quantity at any price level.
