Measure of responsiveness of quantity demanded or quantity supplied.

Percentage of change in quantity demanded divided by the percentage change in price.

Demand has unit elasticity

Price elasticity greater than 1

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jenn.rod1 7 questions

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1What is elasticity?
1. AMeasure of responsiveness of quantity demanded or quantity supplied.
2. BPercentage of change in quantity demanded divided by the percentage change in price.
2Elastic demand quantity demanded responds only slightly to changes in price.
1. ATrue
2. BFalse
3Price elasticity of demand is how much a quantity demanded of a good responds to a change in the price of that good.
1. ATrue
2. BFalse
4Demand is elastic
1. ALess than 1
2. BGreater than 1
3. CEqual to 1
5Demand is inelastic
1. APrice equal to 1
2. BPrice is greater than 1
3. CPreice is less than 1
6Demand has unit elasticity
1. APrice elasticity equal to 1
2. BPrice elasticity greater than 1
3. CPrice elasticity less than 1
7The flatter the demand curve the greater the price elasticity of demand.
1. ATrue
2. BFalse