3 Questions
What happens to the demand for a good if its price increases, assuming all else remains constant?
The demand decreases according to the law of demand
What does a high price elasticity of demand indicate?
Consumers are very responsive to price changes
If the cross-price elasticity of two goods is negative, what does this indicate about their relationship?
They are complementary goods
Test your knowledge of demand function and elasticity with this quiz. Explore the impact of price changes on demand, the significance of high price elasticity, and the implications of negative cross-price elasticity between two goods. Perfect for students and professionals seeking to enhance their understanding of demand dynamics.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
