Elasticity

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Preguntas del test (10)

1Elastic demand is when the percent change in demand is greater than the percent change in price.
1. AVerdadero
2. BFalso
2Inelastic demand is when the percent change in demand is less than the percent change in price.
1. AVerdadero
2. BFalso
3What is elasticity?
1. AThe percent change in price over the percent change in quantity
2. BThe responsiveness of one variable to changes in another
3. CWhen demand falls and price increases
4Elasticity does not measure the extent to which demand will change.
1. AVerdadero
2. BFalso
5The general population is NOT sensitive to changes in air ticket prices.
1. AVerdadero
2. BFalso
6PED makes an inverse relationship between price and demand (if one rises the other falls)
1. AVerdadero
2. BFalso
7If one gets a PED between 0 and -1, the relationship is elastic
1. AVerdadero
2. BFalso
8When PED=0, demand is perfectly inelastic.
1. AVerdadero
2. BFalso
9An elastic demand curve is more vertical in a graph.
1. AVerdadero
2. BFalso
10Businesses will stop buying air tickets if their prices increase.
1. AVerdadero
2. BFalso