elasticity

Question 1

The law of _____ states that quantity demanded will increase when the price is lowered, and vice versa.

Answer 1

Demand

Question 2

Degree of responsiveness or sensitivity of consumers to a change in the price of a product

Answer 2

Price Elasticity of Demand

Question 3

The ______ is a units free measure of the responsiveness of the quantity demanded of a good to a change in its price when all other influences on buyers’ plans remain the same

Answer 3

Price Elasticity of Demand

Question 4

When consumers are relatively responsive to price changes

Answer 4

Elastic Demand

Question 5

modest change in price results in a large change in quantity purchased

Answer 5

Elastic Demand

Question 6

Consumers are relatively unresponsive to price changes

Answer 6

inelastic demand

Question 7

substantial change in price results in a modest change in quantity purchased

Answer 7

inelastic demand

Question 8

Percent change in quantity demanded / Percent change in price

Answer 8

Price of Elasticity of demand

Question 9

E>1

Answer 9

Demand is elastic

Question 10

E<1

Answer 10

demand is inelastic

Question 11

E=1

Answer 11

demand is unitary elastic