Podcast
Play an AI-generated podcast conversation about this lesson
Questions and Answers
What does individual elasticity measure?
What does individual elasticity measure?
- Sensitivity of consumer preferences to changes in income
- Responsiveness of quantity supplied to a change in price for an individual producer
- Overall market responsiveness to price changes
- Responsiveness of quantity demanded to a change in price for an individual consumer (correct)
If the price of a product increases and the quantity demanded by an individual consumer decreases, what can be said about the individual's price elasticity of demand?
If the price of a product increases and the quantity demanded by an individual consumer decreases, what can be said about the individual's price elasticity of demand?
- It is negative (correct)
- It is positive
- It is zero
- It is undefined
What does a price elasticity of demand greater than 1 indicate for an individual consumer?
What does a price elasticity of demand greater than 1 indicate for an individual consumer?
- Demand is unitary elastic
- Demand is inelastic
- Demand is perfectly elastic
- Demand is elastic (correct)
