Price Elasticity Of Demand Quiz

10 Questions | Attempts: 5170

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Price Elasticity Of Demand Quiz - Quiz

Do you know about the price elasticity of demand? Try out this price elasticity of demand quiz to check your knowledge and see how updated you are. Basically, price elasticity is the measurement of changes in users' consumption due to the price change of a product. This quiz will help you check your knowledge as well as practice new things. If you think you can ace, go for it. All the best! If you find the quiz informative, share it with others also.


Questions and Answers
  • 1. 
    If you slow down buying because of  a price increase, your demand is 
    • A. 

      Elastic

    • B. 

      Inelastic

    • C. 

      Strong

    • D. 

      Normal

  • 2. 
    If you spend a very small proportion of your income on a product, then
    • 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

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