Podcast
Questions and Answers
What does elasticity measure in economics?
What does elasticity measure in economics?
- Static nature of a variable
- Absolute value of a variable
- Rate of change of a variable
- Responsiveness of one variable to a change in another variable (correct)
How is price elasticity of demand defined?
How is price elasticity of demand defined?
- Impact of demand shift on price
- Measure of market demand fluctuations
- Rate of supply change in response to a price change
- Responsiveness of quantity demanded to a change in price (correct)
In economics, what is said to be the case when demand is inelastic?
In economics, what is said to be the case when demand is inelastic?
- Quantity demanded increases with price increase
- Quantity demanded does not change much when price changes (correct)
- Quantity demanded decreases significantly with price increase
- Demand is highly variable with price changes
What does price elasticity of supply measure?
What does price elasticity of supply measure?
When is supply said to be inelastic?
When is supply said to be inelastic?
What does cross-price elasticity of demand measure?
What does cross-price elasticity of demand measure?
What happens to the price that businesses can charge when demand is inelastic?
What happens to the price that businesses can charge when demand is inelastic?
What is elasticity of demand a measure of?
What is elasticity of demand a measure of?
Which type of goods tend to have inelastic demand?
Which type of goods tend to have inelastic demand?
What is a key determinant of the elasticity of demand?
What is a key determinant of the elasticity of demand?
What happens to the elasticity of demand when a good represents a small portion of consumers' income?
What happens to the elasticity of demand when a good represents a small portion of consumers' income?
Why do luxury goods often have elastic demand?
Why do luxury goods often have elastic demand?
Which factor primarily determines the ease of adjusting production levels in response to price changes?
Which factor primarily determines the ease of adjusting production levels in response to price changes?
In which scenario is the supply likely to be more elastic?
In which scenario is the supply likely to be more elastic?
How do government regulations impact the elasticity of supply?
How do government regulations impact the elasticity of supply?
How does technology influence the elasticity of supply?
How does technology influence the elasticity of supply?
Which factor is NOT directly related to the elasticity of supply?
Which factor is NOT directly related to the elasticity of supply?
What type of market tends to have a more elastic supply?
What type of market tends to have a more elastic supply?
What factor can make demand less elastic in the short run?
What factor can make demand less elastic in the short run?
How can brand loyalty impact elasticity of demand?
How can brand loyalty impact elasticity of demand?
How does the definition of the market affect the elasticity of demand?
How does the definition of the market affect the elasticity of demand?
What role does the perceived value of a product play in its elasticity?
What role does the perceived value of a product play in its elasticity?
What makes the supply of a product less elastic in the short run?
What makes the supply of a product less elastic in the short run?
How does time horizon affect elasticity of supply?
How does time horizon affect elasticity of supply?
How are two goods classified if the quantity demanded of one good increases when the price of another good increases?
How are two goods classified if the quantity demanded of one good increases when the price of another good increases?
What does it mean if the quantity demanded of a good decreases when consumer income increases?
What does it mean if the quantity demanded of a good decreases when consumer income increases?
What is the significance of understanding elasticity for policymakers who seek to increase tax revenue by raising taxes on a product or service?
What is the significance of understanding elasticity for policymakers who seek to increase tax revenue by raising taxes on a product or service?
If demand is elastic, what should businesses do in order to avoid losing customers?
If demand is elastic, what should businesses do in order to avoid losing customers?
What does it mean when the quantity demanded of a good increases significantly when consumer income increases?
What does it mean when the quantity demanded of a good increases significantly when consumer income increases?
What can businesses learn from understanding elasticity of demand for their products or services?
What can businesses learn from understanding elasticity of demand for their products or services?
