What is inelastic demand?

When qty demanded changes relatively less than price changes

What is elastic demand?

When qty demanded changes relatively more than price changes

Which factors affect consumer's price elasticity of demand?

# of substitutes, portion of consumers' budget, time

What does the price elasticity of demand measure?

How consumers respond to a change in price

Who gets the goods and services that are produced in our economy?

Whoever is willing and able to pay the price

What does price elasticity of demand measure?

Compares relative size of changes in price and qty demanded

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Demand Elasticity

10 termsStudBud Administration40 plays

#elasticity

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Questions 10

Answers

1
Determine a product’s equilibrium price by examining the following table
$6
$8
$5
$7
2
What usually happens to the quantity demanded for a good or service when the price increases?
Stays the same
Increases
None of the above
Decreases
3
What is inelastic demand?
When qty demanded changes relatively more than price changes
When qty demanded changes relatively less than price changes
When qty supplied changes relatively less than price changes
When qty su[[;oed changes relatively morethan price changes
4
What is elastic demand?
When qty demanded changes relatively more than price changes
When qty supplied changes relatively more than price changes
When qty demanded remains the same as price changes
When qty demanded changes relatively less than price changes
5
Which factors affect consumer's price elasticity of demand?
# of substitutes, price, demand, time
# of substitutes, supply, time
# of substitutes, portion of consumers' budget, time
# of substitutes, portion of consumers' budget, price
6
What does the price elasticity of demand measure?
How producers respond to a change in price
How suppliers respond to a change in price
How the market responds to a change in price
How consumers respond to a change in price
7
After a cool, rainy summer, the supply of sunscreen shd b _ than demand & the price would be _.
Greater; decreased
Less; increased
Less; decreased
Greater; increased
8
Who gets the goods and services that are produced in our economy?
Whoever has the most advertising
Whoever is willing and able to pay the price
Whoever has the least costs
Whoever gets there first
9
What does price elasticity of demand measure?
Compares relative size of changes in price and demand
Compares relative size of changes in price and supply
Compares relative size of changes in price and qty supplied
Compares relative size of changes in price and qty demanded
10
What is the amount of money for which an item sells in a competitive market?
Price
Value
Mark-up
Inflation

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