Elasticity Part 1

Question 0

ED < 1

Answer 0

Inelastic

Question 1

Price of elasticity of demand

Answer 1

Is the ratio of percent change of a item’s quantity to its price change.

Question 2

ED = 1

Answer 2

Unitary elastic

Question 3

ED>1

Answer 3

Elastic

Question 4

The price elasticity of demand is zero.

Answer 4

It is perfectly in elastic and curve will be vertical.

Question 5

The price of elasticity is infinite

Answer 5

Demand is perfectly elastic and curve is horizontal.

Question 6

Elastic products

Answer 6

Are affected by price. Consumers may or may not purchase.

Question 7

In elastic

Answer 7

Products are unaffected by changes in price. Consumers will always purchase.

Question 8

Factors that affect price elasticity of demand:

Answer 8

Substitution of goods, price of related goods , time and if the product is a luxury .

Question 9

The price elasticity of supply is?

Answer 9

The ratio of the percentage change in the quantity supplied of an item to the percent change of its market price.

Question 10

ES<1

Answer 10

In elastic

Question 11

ES=1

Answer 11

Unitary elastic

Question 12

ES>1

Answer 12

Elastic

Question 13

The price elasticity of supply is zero

Answer 13

Supply is perfectly inelastic and supply curve is vertical.

Question 14

The price elasticity of supply is infinite

Answer 14

Supply curve is perfectly elastic and supply curve is horizontal.

Question 15

The market period

Answer 15

Is the length of time in which producers of an item are unable to change the quantity produced in response to a change in price.