Economics

Demand elasticity is the extent to which a change in price causes a change in the quantity demanded.

• True

• False

It is the extent to which a change in price causes a change in the quantity demanded.

• Total expenditures

• Demand elasticity

• technical

Demand is _____ when a given change in price causes a relatively larger change in quantity demanded.

• unit elastic

• inelastic

• elastic

Demand is _____ when a given change in price causes a proportional change in quantity demanded.

• unit elastic

• inelastic

• elastic

How do you estimate elasticity?

• multiply the price of a product by the quantity demanded for any point along the demand curve

• compare the direction of a price change to the direction of the change in total revenue, or total expenditures.

• ask if the purchase can be delayed

One of the questions that determines elasticity is the answer to this question:

• Can the purchase be delayed?

• Are there any products available?

• What portion of the consumer's income is required for the purchase?

Prices for common vegetables tend to be elastic because other vegetables are available.

• True

• False

It refers to a changing price that causes a proportional change in total revenue?

• Elastic

• Unit elastic

• Inelastic

An economist performs a total expenditures test and finds that a change in price and a

change in revenue move in opposite directions and concludes that the test shows demand is _____.

• elastic

• unit elastic

• inelastic

A product with many adequate substitutes its demand is likely to be the most ____

• elastic

• unit elastic

• inelastic