Have an account?
Skip to Content
Build your own quiz
10 questions
Show Answers
See Preview
- 1. Multiple Choice
Water has seen an increase in demand 8% this summer, while the price has decreased 12%
1.5 inelastic
1.5 elastic
.67 inelastic
.67 elastic
- 2. Multiple Choice
Wheat has seen a decrease in demand of 5%, while the price has increased 7%
1.4 inelastic
1.4 elastic
.71 inelastic
.71 elastic
- 3. Multiple Choice
Oil has seen a decrease in demand of 9%, while the price has increased 13%
1.44 inelastic
1.44 elastic
.69 inelastic
.69 elastic
- 4. Multiple Choice
Prada has seen a increase in demand of 70%, while the price has decreased 35%
.5 inelastic
.5 elastic
2 inelastic
2 elastic
- 5. Multiple Choice
Red Wing Shoes has seen a decrease in demand of 40%, while the price has increased 20%
.5 inelastic
.5 elastic
2 inelastic
2 elastic
- 6. Multiple ChoiceDemand is almost always more elastic at higher prices and less elastic at lower prices.TrueFalse
- 7. Multiple ChoiceThe formula for calculating elasticity of demand is:The % change in price over the % change in quantity demandedThe % change in quantity demanded over the % change in priceThe change in price over the change in quantity demanedThe change in quantity demanded over the change in price
- 8. Multiple ChoiceIf the price on a product goes up the quantity demanded will go down. This follows the economic theory of:Law of Demandelasticityincome effectNone of the above
- 9. Multiple ChoiceSuppose that elasticity of demand of socks is 0.7. If the price of socks is reduced by 10%, how will sales be effected?sales will grow by more than 10%Sales will grow by 10%Sales will grow by less than 10%Sales will decrease by 10%
- 10. Multiple Choicewhich of the following is not a determinant of demand elasticity?availability of substitutesshare of consumer's budget spend on goodduration of adjustment periodgovernment spending
- Answer choicesTagsAnswer choicesTags