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25 questions
What does it mean?
Ed = 0
Perfectly inelastic demand
Inelastic demand
Unitarily elastic demand
Elastic demand
Perfectly elastic demand
What does it mean?
Ed = 1
Perfectly inelastic demand
Inelastic demand
Unitarily elastic demand
Elastic demand
Perfectly elastic demand
What does it mean?
Ed = ∞
Perfectly inelastic demand
Inelastic demand
Unitarily elastic demand
Elastic demand
Perfectly elastic demand
What does it mean?
Ed > 1
Perfectly inelastic demand
Inelastic demand
Unitarily elastic demand
Elastic demand
Perfectly elastic demand
What does it mean?
Ed < 1
Perfectly inelastic demand
Inelastic demand
Unitarily elastic demand
Elastic demand
Perfectly elastic demand
Which of these best describes the law of demand?
if prices go up, quantity demanded will fall and if prices go down, quantity demanded will go up
if prices go up, quantity demanded will also go up and if prices go down, quantity demanded will also go down
there is no law of demand, each situation is unique and demand and prices cannot be predicted
prices will go up for certain goods when quantity demanded goes up and vice versa
Elasticity refers to
how producers of goods and services react to price changes
how consumers of goods and services react to price changes
how far a supply of scarce goods can be stretched
how often the price of a good or service changes when quantity demanded changes
Which of these demonstrates elastic demand?
a sharp increase in the price of milk causes a large drop in the quantity demanded for milk
the price of homes steadily increase but the quantity demanded for homes does not change
car dealerships cut prices to clear out previous year models and consumers rush to dealerships to take advantage of the sales
gas prices increase in the summer as more people want to go on road trips but the increases do not deter people from buying less gas
Which of these demonstrates inelastic demand? (multiple answers)
a cold snap destroys an apple crop causing prices to jump, however, people still buy apples and quantity demanded does not change
Super Bowl tickets hit record high prices but are still sold out in a matter of minutes and starting going for even higher prices on resale sites
concert tickets are not selling well, so the venue drops prices by 80%; the tickets sell out shortly thereafter
a restaurant starts charging a $10 delivery fee, delivery orders drop by 50% in the first month
Which of these shows a decrease in the quantity demanded?
Which of these shows an increase in the quantity demanded?
Which of these demonstrates inelastic demand?
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