Price Elasticity Of Demand

11 Questions | Total Attempts: 3980

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Demand Quizzes & Trivia

A short quiz on Price Elasticity of Demand for a high school Economics class.


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.

  • 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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