Elasticity and Inelasticity

​ (a)   demand - price changes have little effect on the quantity you buy.

​ (b)   demand - price changes have a significant effect on the quantity you buy.

• Inelastic

• Elastic

Necessities have ​ (a)   Demand

Luxuries have ​ (b)   Demand

• inelastic

• elastic

The measure of how responsive consumers are to price changes in the marketplace.

• Elasticity of demand

• Elasticity of supply

• Inelasticity of demand

• None of these

When a change in price leads to a relatively larger change in the quantity demanded.

• Elasticity of demand

• Elastic

• Inelastic

• Unit elastic

Which type of demand is characterized by a situation where a change in price results in a proportionally smaller change in quantity demanded?

• Elastic

• Inelastic

• Unit elastic

• Perfectly elastic

What type of demand do luxury goods typically exhibit?

• Elastic

• Inelastic

• Unit elastic

• Perfectly inelastic

If a product is considered a necessity, what type of demand is it likely to have?

• Elastic

• Inelastic

• Unit elastic

• Perfectly elastic

Which of the following best describes a perfectly inelastic demand?

• Quantity demanded changes with price

• Quantity demanded does not change with price

• Quantity demanded changes proportionally with price

• Quantity demanded changes more than proportionally with price

What is the term for the measure of how much the quantity demanded of a good responds to a change in price?

• Price elasticity of demand

• Price elasticity of supply

• Cross elasticity of demand

• Income elasticity of demand

When a 10% increase in price leads to a 10% decrease in quantity demanded, the demand is said to be:

• Elastic

• Inelastic

• Unit elastic

• Perfectly elastic