Module 2 Video: Price Elasticity of Demand

Question 1

_______= Price change in quantity demanded
—————————————————-
Percentage Change in Price

Answer 1

Price Elasticity of Demand

Question 2

True of False:

Price Elasticity of Demand & The Slope are the same thing.

Answer 2

False; They are RELATED not the same thing

Question 3

Since price and quantity change in _______ directions on the demand curve. Price Elasticity of Demand is a _________ number.

Answer 3

Opposite;Negative

Question 4

We often refer to ________ elasticities as being larger or higher.

Answer 4

“more negative”

Question 5

A price is ________ if the price elasticity of demand is larger (in absolute value) than 1.

Answer 5

Price Elastic

Question 6

A price is _____ if the price elasticity is smaller (in absolute value) than 1.

Answer 6

Price Inelastic

Question 7

Demand is _______ if the price elasticity of demand is exactly equal to 1.

Answer 7

Unit Price Elastic

Question 8

When a price is _______ quantity demanded changes little in response to price.

Answer 8

Inelastic

Question 9

When a price is _______ quantity demanded changes a lot in response to price change.

Answer 9

Elastic