Elasticity in Economic Concepts Quiz
Test your knowledge on price elasticity, cross-price elasticity, and income elasticity with these quiz questions on elasticity in economics.
#1
Which of the following factors affects the elasticity of supply?
Time horizon
Consumer preferences
Price of related goods
Advertising
#2
Which of the following factors affects the elasticity of demand for a good?
Price of the good
Number of firms in the market
Technology used in production
Taste and preferences of consumers
#3
Which of the following factors does NOT affect the elasticity of demand for a good?
Availability of substitutes
Time horizon
Consumer preferences
Price of the good
#4
What does price elasticity of demand measure?
The percentage change in quantity demanded for a good in response to a one percent change in price
The percentage change in price for a good in response to a one percent change in quantity demanded
The total revenue change in response to a change in quantity demanded
The percentage change in quantity supplied for a good in response to a one percent change in price
#5
Which of the following goods is likely to have a highly elastic demand?
Salt
Gasoline
Luxury cars
Insulin
#6
Inelastic demand is characterized by which of the following?
A large percentage change in quantity demanded for a small percentage change in price
A small percentage change in quantity demanded for a large percentage change in price
A relatively constant quantity demanded despite changes in price
No change in quantity demanded regardless of price changes
#7
What does cross-price elasticity of demand measure?
The percentage change in quantity demanded for a good in response to a one percent change in price of another good
The percentage change in price for a good in response to a one percent change in quantity demanded of another good
The total revenue change in response to a change in price of another good
The percentage change in quantity supplied for a good in response to a one percent change in price of another good
#8
Which of the following is NOT a determinant of price elasticity of demand?
Availability of substitutes
Necessity of the good
Time horizon
Income level
#9
What is the formula for price elasticity of demand?
(Percentage change in quantity demanded) / (Percentage change in price)
(Change in quantity demanded) / (Change in price)
(Price) * (Quantity demanded)
(Price change) * (Quantity change)
#10
What does a price elasticity of demand of -0.5 indicate?
Elastic demand
Inelastic demand
Unitary elastic demand
Perfectly elastic demand
#11
Which of the following goods is likely to have a perfectly elastic demand?
Electricity during peak hours
Bottled water during a drought
Custom-made jewelry
Patented pharmaceutical drugs
#12
Which of the following goods is likely to have a highly elastic supply?
Homemade crafts
Fresh produce
Rare paintings
Nuclear reactors
#13
What does a price elasticity of supply of 0.75 indicate?
Elastic supply
Inelastic supply
Unitary elastic supply
Perfectly elastic supply
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