Price Elasticity Of Demand
A short quiz on Price Elasticity of Demand for a high school Economics class.
- 1.If you slow down buying because of a price increase, your demand is
- A.
Elastic.
- B.
Inelastic.
- C.
Strong.
- D.
Normal.
- 2.
- A.
The demand for that product will tend to be price elastic.
- B.
The demand for that product will tend to be price inelastic.
- C.
You will wait for a sale before you buy the item.
- D.
You will stop buying it if the prices rises even a little.
- 3.When the percentage change in the price exceeds the percentage change in quantity demanded, then demand is
- A.
Inelastic.
- B.
Unitary elastic.
- C.
Elastic.
- D.
Irrelevant.
- 4.Which of the following is an example of a good with inelastic demand?
- A.
Fresh lobster
- B.
HD flat panel tv sets
- C.
Laptop computers
- D.
Life-saving medicine
- 5.If a good has a lot of substitutes, then its demand will tend to be
- A.
Elastic.
- B.
Inelastic.
- C.
Unitary.
- D.
None of these.
- 6.. Mercedes makes a luxury car called the Maybach which sells for approximately $490,000. base price. One would expect the demand for this product to be...
- A.
Elastic.
- B.
Inelastic.
- C.
Unitary.
- D.
None of these.
- 7.If billionaire Bill Gates decides he has to have a Maybach, for him it has demand that
- A.
Elastic.
- B.
Inelastic.
- C.
Unitary.
- D.
None of these.
- 8.Total revenue is defined as
- A.
The amount of profit a company makes.
- B.
The amount of profit a company makes after paying taxes.
- C.
The total amount of money a company takes in for selling its goods.
- D.
) the amount of money affected by price elasticity.
- 9.A graph that shows a product with elastic demand will tend to be...
- A.
More straight up and down.
- B.
Flatter.
- C.
Backward bending.
- D.
Finding equilibrium faster.
- 10.Starbucks raised the price of a cup of coffee by 5 cents in early 2007, only to find that there was little or no change in the number of cups sold. What does this say about Starbucks coffee demand?
- A.
It defies the laws of supply and demand
- B.
It acts like the demand for any luxury good.
- C.
It is extremely inelastic.
- D.
there is a lot of competition.
- 11.Netflix raised its price by 60% and lost 3% of its customers. This means its demand must be
- A.
Elastic
- B.
Inelastic
- C.
Unitary
- D.
None of these.
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