Elasticity and Economic Behavior Quiz
Test your knowledge on elasticity with questions about price elasticity, cross-price elasticity, income elasticity, and more!
#1
What does price elasticity of demand measure?
The change in quantity demanded in response to a change in price
The change in price in response to a change in quantity demanded
The change in income in response to a change in price
The change in quantity supplied in response to a change in price
#2
Which of the following products is likely to have the most elastic demand?
Salt
Insulin
Gasoline
Luxury cars
#3
What does an elasticity of 1.5 indicate for a good's demand?
Elastic demand
Inelastic demand
Unitary elastic demand
Perfectly elastic demand
#4
What does cross-price elasticity of demand measure?
The change in quantity demanded of one good in response to a change in the price of another good
The change in price of one good in response to a change in the quantity demanded of another good
The change in income in response to a change in the price of a related good
The change in quantity supplied of one good in response to a change in the price of another good
#5
Which of the following goods is likely to have a negative cross-price elasticity with gasoline?
Luxury cars
Public transportation tickets
Bicycles
Gasoline-powered generators
#6
What does income elasticity of demand measure?
The change in quantity demanded in response to a change in income
The change in income in response to a change in quantity demanded
The change in price in response to a change in income
The change in quantity supplied in response to a change in income
#7
Which of the following factors does NOT affect the price elasticity of demand?
Availability of substitutes
Necessity of the good
Time horizon
Income level
#8
Which of the following would likely have the most inelastic supply in the short run?
Agricultural products
Manufactured goods
Artisanal crafts
Crude oil
#9
What is the formula for calculating price elasticity of demand?
Percentage change in quantity demanded / Percentage change in price
Percentage change in price / Percentage change in quantity demanded
Change in quantity demanded / Change in price
Change in price / Change in quantity demanded
#10
If the income elasticity of demand for a good is negative, what does it indicate?
The good is a normal good
The good is an inferior good
The good has unitary elasticity
The good is a luxury good
#11
What does perfectly inelastic demand imply?
The quantity demanded does not change regardless of price
The price does not change regardless of quantity demanded
The quantity demanded changes proportionally to price changes
The price changes proportionally to quantity demanded changes
#12
What is the formula for calculating point elasticity of demand?
Change in quantity demanded / Change in price
Percentage change in quantity demanded / Percentage change in price
Change in price / Change in quantity demanded
Percentage change in price / Percentage change in quantity demanded
#13
Which of the following would have the highest price elasticity of demand?
Necessities
Luxury goods
Goods with many substitutes
Goods with few substitutes
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