What are the determinants of price elasticity?

Price Elasticity Concepts

Quiz
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Other
•
11th Grade
•
Medium
Princes Saranath
Used 1+ times
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15 questions
Show all answers
1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Availability of substitutes, necessity or luxury, proportion of income, time period, brand loyalty
Price of complementary goods, consumer preferences, production costs
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
How do you calculate price elasticity coefficients?
Price Elasticity of Demand = (Change in Price) / (Change in Quantity Demanded)
Price Elasticity of Demand = (Change in Quantity Demanded) / (Change in Price)
Price Elasticity of Demand = (Change in Quantity Demanded) * (Change in Price)
Price Elasticity of Demand = (% Change in Quantity Demanded) / (% Change in Price)
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What does a price elasticity value of -2.5 indicate?
Price elasticity value of -2.5 indicates a relatively elastic demand.
Price elasticity value of -2.5 indicates a perfectly elastic demand.
Price elasticity value of -2.5 indicates a relatively inelastic demand.
Price elasticity value of -2.5 indicates a unitary elastic demand.
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Name some factors that affect price elasticity.
customer age
geographical location
product color
availability of substitutes, necessity of the product, time period considered, proportion of income spent on the product
brand popularity
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What are the different types of price elasticity?
Perfectly elastic, Perfectly inelastic, Unitary elastic, Relatively elastic, Relatively inelastic
Perfectly unitary, Completely elastic, Moderately inelastic
6.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Provide an example of the application of price elasticity in real life.
Water prices and consumer behavior
Bread prices and consumer behavior
Gasoline prices and consumer behavior
Movie ticket prices and consumer behavior
7.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Explain the concept of perfectly elastic demand.
Perfectly elastic demand occurs when the quantity demanded changes infinitely with a small change in price, resulting in a horizontal demand curve.
Perfectly elastic demand means that consumers are not responsive to price changes.
Perfectly elastic demand occurs when the quantity demanded remains constant regardless of price changes.
Perfectly elastic demand results in a vertical demand curve.
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