Individual Elasticity Quiz
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Questions and Answers

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?

  • 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?

  • Demand is unitary elastic
  • Demand is inelastic
  • Demand is perfectly elastic
  • Demand is elastic (correct)

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