#1
Which of the following measures the responsiveness of quantity demanded to a change in price?
Price elasticity of demand
Income elasticity of demand
Cross elasticity of demand
Price elasticity of supply
#2
If the price elasticity of demand for a good is greater than 1, it is considered to be:
Inelastic
Elastic
Unitary elastic
Perfectly inelastic
#3
Which of the following formulas represents 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
#4
If the cross elasticity of demand between two goods is positive, it indicates that the goods are:
Complements
Substitutes
Unrelated
Perfect substitutes
#5
What does a price elasticity of 0 indicate?
Perfectly inelastic demand
Perfectly elastic demand
Unitary elastic demand
No change in quantity demanded
#6
When demand is perfectly elastic, the price elasticity of demand is equal to:
#7
Which of the following factors does NOT influence the price elasticity of demand?
Availability of substitutes
Necessity of the good
Time horizon
Income level of consumers
#8
Which of the following is true when demand is perfectly inelastic?
Consumers are very responsive to price changes
Quantity demanded does not change with a change in price
The price elasticity of demand is infinity
The price elasticity of demand is equal to 1
#9
What is the relationship between price elasticity of demand and total revenue?
They have a direct relationship
They have an inverse relationship
They are unrelated
They are equal
#10
What does it mean when the price elasticity of supply is perfectly elastic?
Producers are very responsive to price changes
Supply is unaffected by price changes
Supply is infinitely responsive to price changes
Supply is fixed regardless of price changes
#11
When the price elasticity of supply is greater than 1, supply is considered to be:
Perfectly elastic
Inelastic
Unitary elastic
Elastic
#12
If the price elasticity of supply is less than 1, supply is considered to be:
Perfectly elastic
Inelastic
Unitary elastic
Elastic
#13
If the price elasticity of demand is 0.5, what type of demand does it represent?
Inelastic demand
Unitary elastic demand
Elastic demand
Perfectly inelastic demand
#14
If the price elasticity of supply is greater than 1, what type of supply curve does it represent?
Perfectly elastic
Inelastic
Unitary elastic
Elastic
#15
If the price elasticity of demand is -1.5, what type of demand does it represent?
Inelastic demand
Unitary elastic demand
Elastic demand
Perfectly inelastic demand