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Elasticity of demand and supply Flashcards | StudBud
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Elasticity of demand and supply
Elasticity of demand and supply
22 terms
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An introduction to demand and supply
Flashcards
22 cards
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Practice quiz
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Questions
22
Answers
1
Price elasticity of demand measures
how responsive Qd is to a change in price
how responsive Qs is to a change in price
how responsive Price is to a change in Qd
how responsive Price is to a change in Qs
2
An elasticity of supply greater than 1, means the product has an
Elastic supply
Inelastic supply
Perfectly inelastic supply
Unitary elastic supply
3
The unitary elastic point on the demand curve is found
toward the bottom of the demand curve
toward the top of the demand curve
mid-way on the demand curve
4
The price elasticity of supply formula is
percentage change in P ÷ percentage change in Qs
percentage change in Qs ÷ percentage change in Price
5
A product with a perfectly inelastic supply will have an elasticity
Equal to 0 and be represented by a vertical supply curve
Equal to 0 and be represented by a horizontal supply curve
Equal to ∝ and be represented by a horizontal supply curve
Equal to ∝ and be represented by a vertical supply curve
6
If price falls and demand is elastic, TR will
Increase
Decrease
Stay the same
7
An elasticity of demand greater than 1, means the product has an
Inelastic demand
Unitary elastic demand
Elastic demand
Perfectly inelastic demand
8
Price elasticity of supply measures
how responsive Price is to a change in Qd
how responsive Qd is to a change in price
how responsive Price is to a change in Qs
how responsive Qs is to a change in price
9
Elasticity coefficients are negative because
the slope of the supply curve is positive
the slope of the demand curve is a negative
10
An elasticity of supply less than 1, means the product has an
Unitary elastic supply
Perfectly inelastic supply
Inelastic supply
Elastic supply
11
If an product is scarce or rare, it is likely to have
a perfectly inelastic demand
a perfectly elastic demand
an elastic demand
an inelastic demand
12
If price rises and demand is elastic, TR will
Stay the same
Fall
Rise
13
The quicker a supplier is able to respond to market price changes, the higher the
elasticity of supply
inelasticity of supply
14
If price falls and demand is inelastic, TR will
Decrease
Stay the sam
Increase
15
A product with a perfectly inelastic demand will have an elasticity
Equal to ∝ and be represented by a horizontal demand curve
Equal to 0 and be represented by a vertical demand curve
Equal to ∝ and be represented by a vertical demand curve
Equal to 0 and be represented by a horizontal demand curve
16
If a producer has limited capacity to increase production, supply is likely to be
Inelastic
Elastic
17
If price rises and demand is inelastic, TR will
Decrease
Increase
Stay the sam
18
An elasticity of demand less than 1, means the product has an
Elastic demand
Perfectly inelastic demand
Unitary elastic demand
Inelastic demand
19
The price elasticity of demand formula is
percentage change in Qd ÷ percentage change in Price
percentage change in P ÷ percentage change in Qd
20
If a product or service has substitutes, its more likely to have
inelastic demand
a perfectly inelastic demand
an elastic demand
a perfectly elastic demand
21
A product with a perfectly elastic supply will have an elasticity
Equal to ∝ and be represented by a vertical supply curve
Equal to 0 and be represented by a horizontal supply curve
Equal to 0 and be represented by a vertical supply curve
Equal to ∝ and be represented by a horizontal supply curve
22
A product with a perfectly elastic demand will have an elasticity
Equal to ∝ and be represented by a vertical demand curve
Equal to 0 and be represented by a vertical demand curve
Equal to 0 and be represented by a horizontal demand curve
Equal to ∝ and be represented by a horizontal demand curve
