Economics Quiz

What does demand elasticity measure?

• Change in quantity demanded in response to a price change

• Total amount spent on a good at a specific price

• Responsiveness of quantity supplied to price changes

• Responsiveness of quantity demanded to price changes

What does income elasticity measure?

• Change in quantity demanded in response to a price change

• Responsiveness of quantity demanded to income changes

• Responsiveness of quantity supplied to price changes

• Total amount spent on a good at a specific price

What does cross elasticity measure?

• Total amount spent on a good at a specific price

• Responsiveness of quantity supplied to price changes

• Change in quantity demanded in response to a price change

• Quantity demanded for one good based on price changes in its substitute goods

What does price elasticity measure?

• Responsiveness of quantity supplied to price changes

• Change in quantity demanded in response to a price change

• Responsiveness of quantity demanded to price changes

• Total amount spent on a good at a specific price

What are price ceilings and floors?

• Change in quantity demanded in response to a price change

• Total amount spent on a good at a specific price

• Government-imposed maximum and minimum prices for goods or services

• Responsiveness of quantity demanded to price changes

What is the taxonomy of goods based on?

• Total amount spent on a good at a specific price

• Change in quantity demanded in response to a price change

• Responsiveness of quantity supplied to price changes

• Characteristics influencing market behavior

What does diminishing marginal utility refer to?

• Change in quantity demanded in response to a price change

• Total amount spent on a good at a specific price

• Responsiveness of quantity supplied to price changes

• Decrease in satisfaction gained from consuming more units of the same good or service

What is total utility?

• Overall satisfaction from consuming a good or service

• Responsiveness of quantity supplied to price changes

• Total amount spent on a good at a specific price

• Change in quantity demanded in response to a price change

What are marginal benefit and cost essential for?

• Total amount spent on a good at a specific price

• Understanding consumer choice and producer optimization

• Change in quantity demanded in response to a price change

• Responsiveness of quantity supplied to price changes

What is consumer surplus?

• Change in quantity demanded in response to a price change

• Responsiveness of quantity supplied to price changes

• Difference between a consumer's price and their maximum willingness to pay

• Total amount spent on a good at a specific price