The demand for school biology textbooks is inelastic. This happens because:
The biology textbooks have substitutes
They are a luxury good
They are a necessity for biology class in school
They are really expensive
When the price of small dolls goes from 10$ to 12$, the quantity demanded decreases from 50 to 45. What is the price elasticity of demand?
-0.5
-2
2
-1
Which of the following statements is false?
When elasticity is greater than 1 it is a luxury good
When elasticity is between 0-1 it is a normal necessity
When elasticity is perfectly inelastic it is horizontal on a graph
Which of the following good is likely to have an inelastic demand?
Pepsi
Water
Coca Cola
Chocolate
If product A has an elasticity of 1 and product B has an elasticity of 3.1, what can you tell about these goods?
They are complements
They are substitutes
A is unit elastic and B is inelastic
A has less substitutes than B
Which of the following is not a reason why price elasticity of supply changes?
Spare capacity
Flexibility of labor
Choice
Time
If the cross price elasticity of demand is negative than the good is
If you have an inelastic product you should the price of the good.
The mayor of Bogota wants to increase the taxes on cigarettes so they could raise more revenue. The mayor believe that cigarettes are products.
The economic problem states that we have unlimited wants but we have limited resources.
