Principles of Microeconomics: Elasticity and Consumer Behavior Quiz
Test your knowledge on price elasticity, demand, and supply with 8 insightful questions. Challenge yourself now!
#1
What is price elasticity of demand?
A measure of how quantity demanded changes with a change in price
A measure of how quantity supplied changes with a change in price
A measure of how consumer income changes with a change in price
A measure of how consumer preferences change over time
#2
Which of the following goods is likely to have the most elastic demand?
Salt
Insulin
Designer handbags
Gasoline
#3
What is cross-price elasticity of demand?
A measure of how quantity demanded changes with a change in income
A measure of how quantity demanded changes with a change in the price of another good
A measure of how quantity demanded changes with a change in the price of the same good
A measure of how quantity demanded changes with a change in the price level
#4
If the price of a product increases by 10% and the quantity demanded decreases by 5%, what is the price elasticity of demand?
#5
What is the relationship between total revenue and price elasticity of demand?
Total revenue is directly proportional to price elasticity of demand
Total revenue is inversely proportional to price elasticity of demand
Total revenue is unrelated to price elasticity of demand
Total revenue is equal to price elasticity of demand
#6
If the income elasticity of demand for a luxury good is 2, what does this indicate?
Demand for the good is inelastic
Demand for the good is elastic
Demand for the good is unitary elastic
Demand for the good is perfectly elastic
#7
Which of the following is not a determinant of price elasticity of demand?
Availability of substitutes
Income level of consumers
Necessity of the good
Time horizon
#8
If the price elasticity of supply for a product is 0.5, how will producers respond to a 20% increase in price?
Supply will increase by 10%
Supply will increase by 20%
Supply will increase by 40%
Supply will decrease by 10%
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