Max And Stassi's Elasticity Quiz

18 Questions | Total Attempts: 184

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Elasticity Quizzes & Trivia

This qiuz is dessigned to help students understand the basic concept of elasticity and cross elasticity which are part of the concept of micro economics. We were given this assignment for our economics class, taught by Mr. A.


Questions and Answers
  • 1. 
    Why did the chicken cross the road?
    • A. 

      Because he wanted to.

    • B. 

      To get to the other side.

    • C. 

      Chuck norris forced him to.

  • 2. 
    What is the formula for income elasticity?
    • A. 

      %change in y for good one / %change in p for good two

    • B. 

      %change in p for good one / %change in y for good two

    • C. 

      %change in demand for good one/ %change in price for good two

    • D. 

      %change in demand for good two/ %change in y for good one.

  • 3. 
    If the XED for a product is positive, then the product it is being compared two is:
    • A. 

      A Substitute

    • B. 

      Unrelated

    • C. 

      A Complement

    • D. 

      Not as good

  • 4. 
    If the XED of a product is close to zero, then:
    • A. 

      The goods are close compliments

    • B. 

      The goods are close substitutes

    • C. 

      The goods are close compliments or close substitutes

    • D. 

      The goods are unrelated

  • 5. 
    If the price of price of milk changes by 20 cents and i buy 2000 Euros worth more of Oreos, than the absolute value of the XED must be 
    • A. 

      Very high

    • B. 

      Very low

    • C. 

      It doesn't matter

    • D. 

      Can i have some of your Oreos?

  • 6. 
    The price of a zuchinni rises from 1 Euro to 2, and the demand for Uncle Bobs guide to zuchinni ranching rises from 20000 to 40000 copies. What is the XED for a zuchinni compared to uncle bobs book?
    • A. 

      1

    • B. 

      2

    • C. 

      0.5

    • D. 

      -1

  • 7. 
    Cross elasticity is what happens when price elasticity gets angry.
    • A. 

      True

    • B. 

      False

  • 8. 
    Income elasticity measures
    • A. 

      How much of a product you will buy based on its price

    • B. 

      How much of a product you will buy based on how much money you make

    • C. 

      How much of a product you will sell based on how much people are willing to pay

    • D. 

      How much money you will buy based on the how much product the price has.

  • 9. 
    The formula for income elasticity is:
    • A. 

      % Change in income / % price

    • B. 

      %Y / %D

    • C. 

      %D / % Y

    • D. 

      Whatever that British guy drew on the blackboard.

  • 10. 
    If the YED for a good is negative, it means that
    • A. 

      As income increases, people buy more of it.

    • B. 

      As income decreases, people buy more of it.

    • C. 

      As income increases people, buy less of it

    • D. 

      It is an inferior good

    • E. 

      All answers except, the first.

  • 11. 
    If my income increases from 5 Euro a week to 15 Euro a week, and buy 6 packs of chewing gum instead of 4, what is my YED for Chewing gum?
    • A. 

      2 / 3

    • B. 

      3 / 2

    • C. 

      (5/4) (15/6)

  • 12. 
    YED is a measurement of wealth to willingness to purchase a product, not the responsiveness of a change in wealth to the amount of product purchased.
    • A. 

      True

    • B. 

      False

  • 13. 
    The determinants of YED are:
    • A. 

      Necessity vs luxury

    • B. 

      Availability of complements

    • C. 

      Availability of substitutes.

    • D. 

      Time horizon

    • E. 

      Relative size of purchase

    • F. 

      Manliness

    • G. 

      Closeness of substitutes (how easy it is to find one)

    • H. 

      Number of complements

  • 14. 
    The determinants of Cross elasticity of demand are:
    • A. 

      How similar the goods are

    • B. 

      There aren't any

    • C. 

      Its complicated

  • 15. 
    Why do we care about Yed?
    • A. 

      Because it shows us what kind of good we are dealing with.

    • B. 

      There will be a test

    • C. 

      It helps us adjust the price of our product

    • D. 

      Because, something something Engel curve, something something.

  • 16. 
    Why do we care about the XED
    • A. 

      It is very important to understand the price of a product.

    • B. 

      It looks like a smiling man with a mustache.

    • C. 

      All of the above

  • 17. 
    What is the Engel Curve? What does it want from us?
    • A. 

      It shows demand based on income. It can be used to find cross elasticity.

    • B. 

      It shows income based on demand. It can be used to find price elasticity.

    • C. 

      It shows demand based on income. It can show whether a product is superior or inferior.

    • D. 

      It shows income based on demand.

  • 18. 
    Who is responsible for the Engel curve?
    • A. 

      Friedrich Engel

    • B. 

      Ernst Engel

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