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EC11 Week 4 - Elasticities Flashcards | StudBud
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EC11 Week 4 - Elasticities
EC11 Week 4 - Elasticities
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Answers
1
Income Elasticity of Demand (YED) measures the responsiveness of:
quantity supplied to a change in price
quantity demanded to a change in the price of another good
quantity demanded to a change in price
quantity demanded to a change in income
2
If two goods have a POSITIVE Cross-Price Elasticity of Demand (XED), these goods are considered:
Substitutes
Inferiour good
Normal good
Complements
3
If two goods have a NEGATIVE Cross-Price Elasticity of Demand (XED), these goods are considered:
Normal good
Complements
Inferiour good
Substitutes
4
A good with a POSITIVE Income Elasticity of Demand (YED) is classified as:
Normal good
Inferiour good
Substitutes
Complements
5
Cross-Price Elasticity of Demand (XED) shows how ...... changes when the price of good A changes
demand of good B
income
price of good B
Quantity demanded od good B
6
If the Price Elasticity of Demand (PED) is greater than 1, demand is considered:
Relatively elastic
Perfectly elastic
Relatively inelastic
Unit elastic
7
Which of the following factors can affect the Price Elasticity of Supply (PES)?
The necessity of the good
The proportion of income spent on the good
The time period under consideration
The availability of substitutes
8
Price Elasticity of Demand (PED) measures responsiveness of:
relationship between two different goods' demand
quantity demanded to changes in income
of quantity demanded to changes in price
price to changes in quantity demanded
9
A good with a NEGATIVE Income Elasticity of Demand (YED) is classified as:
Normal good
Substitutes
Complements
Inferiour good
10
If the Price Elasticity of Suppy (PES) is less than 1, demand is considered:
Perfectly elastic
Unit elastic
Relatively inelastic
Relatively elastic
