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Elasticity quiz

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Elasticity

Elasticity

Question 1 of 10

1

Elastic demand is when the percent change in demand is greater than the percent change in price.

Select one of the following:

  • True
  • False

Explanation

Question 2 of 10

1

Inelastic demand is when the percent change in demand is less than the percent change in price.

Select one of the following:

  • True
  • False

Explanation

Question 3 of 10

1

What is elasticity?

Select one of the following:

  • The percent change in price over the percent change in quantity

  • The responsiveness of one variable to changes in another

  • When demand falls and price increases

Explanation

Question 4 of 10

1

Elasticity does not measure the extent to which demand will change.

Select one of the following:

  • True
  • False

Explanation

Question 5 of 10

1

The general population is NOT sensitive to changes in air ticket prices.

Select one of the following:

  • True
  • False

Explanation

Question 6 of 10

1

PED makes an inverse relationship between price and demand (if one rises the other falls)

Select one of the following:

  • True
  • False

Explanation

Question 7 of 10

1

If one gets a PED between 0 and -1, the relationship is elastic

Select one of the following:

  • True
  • False

Explanation

Question 8 of 10

1

When PED=0, demand is perfectly inelastic.

Select one of the following:

  • True
  • False

Explanation

Question 9 of 10

1

An elastic demand curve is more vertical in a graph.

Select one of the following:

  • True
  • False

Explanation

Question 10 of 10

1

Businesses will stop buying air tickets if their prices increase.

Select one of the following:

  • True
  • False

Explanation

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