Types of Price Elasticity of demand

Demand is almost always more elastic at higher prices and less elastic at lower prices.

• True
• False

Demand is unit elastic if it is less than 1.0

• True
• False

If the price on a product goes up the quantity demanded will go down. This follows the economic theory of:

• Law of Demand
• elasticity
• income effect
• None of the above

The elasticity of demand for tissues is less than 1. This means the demand for tissues is

• elastic

• unit elastic

• inelastic

• really expensive

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?

% change in Quantity demanded = % change in Price.

• Perfectly inelastic demand

• Inelastic demand

• Unitarily elastic demand

• Elastic demand

• Perfectly elastic demand

Describe your demand for medicine if you buy the same amount of it after a large price increase.

• elastic

• unitary elastic

• perfectly inelastic

• hyper elastic

Measurement of degree of responsiveness of quantity demanded to changes in price is called

• Income elasticity of demand

• Price elasticity of demand

• Law of demand

• Cross elasticity of demand