Quiz

Elasticity

bpena 10 questions

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Questions in this quiz (10)

1When the price elasticity of demand is between 0 and 1 it is
1. Ainelastic
2. Belastic
3. Cunit elastic
2Price elasticity of demand has an inverse relationship
1. ATrue
2. BFalse
3If the elasticity is unit elastic, and the quantity demanded increases by 20%, then the price must increase by 20%
1. ATrue
2. BFalse
4The equation for finding a percentage change is
1. Aold-new/new
2. B(new-old/old) *100
3. Cnew-old/old
5bread and cream cheese have an xed of -0.7. They are
1. Aweak or no subsitutes
2. Bstrong subsitutes
3. Cweak or no complements
4. Dstrong complements
6The reasons for why ped changes are
1. Astock
2. Btime
3. Ccapacities
4. Dsubstituion of capital labor
5. Echoice
7The unit elastic graph of ped starts at the origin
1. ATrue
2. BFalse
8If a scarf has an elasticity of 1.6, it is a
1. ANormal necessity good
2. BNormal inferior good
3. CNormal luxury good
4. DInferior good
9If a good is inelastic, it's not responsive to price
1. ATrue
2. BFalse
10In a xed graph, two goods with no relationship would look like a horizontal line
1. ATrue
2. BFalse