Elasticity

eumana 10 questions

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Questions in this quiz (10)

1Elastic demand is when the percent change in demand is greater than the percent change in price.
1. ATrue
2. BFalse
2Inelastic demand is when the percent change in demand is less than the percent change in price.
1. ATrue
2. BFalse
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. ATrue
2. BFalse
5The general population is NOT sensitive to changes in air ticket prices.
1. ATrue
2. BFalse
6PED makes an inverse relationship between price and demand (if one rises the other falls)
1. ATrue
2. BFalse
7If one gets a PED between 0 and -1, the relationship is elastic
1. ATrue
2. BFalse
8When PED=0, demand is perfectly inelastic.
1. ATrue
2. BFalse
9An elastic demand curve is more vertical in a graph.
1. ATrue
2. BFalse
10Businesses will stop buying air tickets if their prices increase.
1. ATrue
2. BFalse