Elasticity

Question 1

The responsiveness of one variable to changes in another

Answer 1

Elasticity

Question 2

Measures the extent to which demand will change

Answer 2

Elasticity

Question 3

It is the degree of responsiveness of quantity demanded to a change in price.

Answer 3

Price Elasticity of Demand (PED)

Question 4

When the resulting price elasticity of demand is greater than 1, the consumer’s sensitivity to changes in price is said to be _______ .

Answer 4

Elastic

Question 5

When the resulting price elasticity of demand is less than 1, the quantity demanded to changes in price is _______ .

Answer 5

Inelastic

Question 6

When the price elasticity of demand is equal to 1, the quantity demanded is _________ .

Answer 6

Unitary Elastic

Question 7

True or False: Demand curves are upward sloping as described by the law of demand.

Answer 7

False; downward sloping

Question 8

True or False: Certain changes in demand curves occur as quantity demanded reacts to changes in price.

Answer 8

True

Question 9

In what demand does the changes in price are relatively small?

Answer 9

Elastic demand

Question 10

In what demand, demand curves tend to slope more horizontally?

Answer 10

Elastic demand

Question 11

What is the demand when there is a relatively change in the price of the commodity?

Answer 11

Inelastic demand

Question 12

Demand curves tend to slope more vertically

Answer 12

Inelastic demand

Question 13

The degree of responsiveness of quantity supplied to a change in price.

Answer 13

Price Elasticity of Supply (PES)

Question 14

The degree of responsiveness of quantity demanded to a change in income.

Answer 14

Income Elasticity of Demand

Question 15

When the result of income elasticity is greater than 1, the product is called a what but considered as what?

Answer 15

called a normal good but considered as luxury

Question 16

This happens when an increase in a consumer’s income has caused a substantial increase in the demand for a product.

Answer 16

The product is called a normal good but considered as luxury.

Question 17

When the resulting income elasticity is negative number, the good is considered to be _____ .

Answer 17

Inferior

Question 18

A good becomes _____ when an increase in income bring about a decrease

Answer 18

Inferior

Question 19

A good is said to be _______ if income elasticity is equal to 1.

Answer 19

Unitary

Question 21

O

Answer 21

O