Podcast
Questions and Answers
Why is vanilla ice cream more elastic than food?
Why is vanilla ice cream more elastic than food?
- Because it's a necessity
- Because it's a luxury (correct)
- Because it's a type of food
- Because it's a substitute for food
What happens to the quantity demanded of a good when the price elasticity of demand is high?
What happens to the quantity demanded of a good when the price elasticity of demand is high?
- It remains unchanged
- It becomes zero
- It responds substantially to changes in price (correct)
- It responds slightly to changes in price
What is the main factor that determines the price elasticity of demand over different time horizons?
What is the main factor that determines the price elasticity of demand over different time horizons?
- Availability of close substitutes
- Time horizon (correct)
- Necessities vs luxuries
- Definition of the market
What type of goods tend to have more elastic demand?
What type of goods tend to have more elastic demand?
What is the meaning of a unit elastic demand?
What is the meaning of a unit elastic demand?
Which of the following statements about elastic demand is true?
Which of the following statements about elastic demand is true?
What is the main difference between necessities and luxuries in terms of price elasticity of demand?
What is the main difference between necessities and luxuries in terms of price elasticity of demand?
Which of the following goods would likely have a more elastic demand?
Which of the following goods would likely have a more elastic demand?
What happens to the demand curve when the price elasticity of demand is perfectly elastic?
What happens to the demand curve when the price elasticity of demand is perfectly elastic?
Which of the following factors determines the elasticity of demand?
Which of the following factors determines the elasticity of demand?
What is the term for a market with a high degree of elasticity of demand?
What is the term for a market with a high degree of elasticity of demand?
If a product is considered a necessity, its demand is likely to be:
If a product is considered a necessity, its demand is likely to be:
What is the formula for computing price elasticity of demand using the percentage method?
What is the formula for computing price elasticity of demand using the percentage method?
When demand is inelastic, an increase in price will lead to an increase in:
When demand is inelastic, an increase in price will lead to an increase in:
What is the formula for the midpoint method of measuring elasticity?
What is the formula for the midpoint method of measuring elasticity?
What does income elasticity of demand measure?
What does income elasticity of demand measure?
What is the term for the responsiveness of the quantity supplied of one good to a change in the price of another good?
What is the term for the responsiveness of the quantity supplied of one good to a change in the price of another good?
