Price elasticity measures what?

The quantity demanded of a good and its change in price

Companies engage in competitive pricing in an attempt to do what?

Lure customers away from rival producers

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Elastic and Inelastic Demand and Pricing

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Inelastic and elastic demand and how sensitive consumers are to price.

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Questions 12

Answers

1
Price elasticity measures what?
The quantity supplied of a good and its change in price
The quantity demanded of a good and its change in price
The surplus of a good and the change in price of that good
The overall demand of a good and its change in price
2
Suppliers often reduce prices because they?
Have a shortage
Need more money
Wan to create a monopoly
Have a surplus
3
On a demand and supply graph, an increase in demand causes the demand curve which way?
Shift from the top to the bottom
Nothing shifts demand
Shift from right to left
Shift from left to right
4
According to law of supply, when prices increase what happens?
Quantity demanded decreases
Quantity demanded increases
Quantity supplied increases
Quantity supplied decreases
5
In a price system of a market economy, prices are determined by?
Market forces
The stock market
Supply and demand
Fiscal policy
6
The result of quantity supplied being greater than quantity demanded?
Product shortage
Product surplus
Fickle consumers
Market equilibrium
7
Companies engage in competitive pricing in an attempt to do what?
Make more money
Lure customers away from rival producers
Try and reach market equilibrium
Be mean
8
The extent to which the total spending for an item will fluctuate with changes in supply?
Elasticity of supply
Elasticity of demand
Elasticity of pricing
Inelasticity of demand
9
On a market supply and demand graph the horizontal axis determines what?
Supply
Demand
Quantity
Price
10
The government agrees to pay the difference between the price floor, ceiling and equilibrium?
Subsidy
Tariff
Quota
Protectionism
11
Demand can be changed by?
The 5 shifters
GDP
Nothing, demand does not change
The 4 P's
12
The maximum amount that a seller may charge for a good or service is called a what ?
Market forces
Minimum wage
Price ceiling
Price floor

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