10 Questions
Which of the following correctly defines elasticity in microeconomics?
Elasticity measures the responsiveness of quantity demanded to a change in price.
Which of the following is an example of inelastic demand?
Demand for insulin by a diabetic
What does perfectly inelastic demand mean?
Price elasticity of demand equals zero; quantity demanded does not respond to change in price
What does perfectly elastic demand mean?
Price elasticity of demand equals infinity; quantity demanded has infinite response to change in price
What is the main difference between elastic and inelastic demand?
Elastic demand has a large response in quantity demanded when price changes, while inelastic demand has a small response.
Which formula is used to calculate price elasticity of demand?
% change in quantity demanded / % change in price
What is the difference between inelastic demand and elastic demand?
Inelastic demand has a small response in quantity demanded when price rises, while elastic demand has a large response in quantity demanded.
What is perfectly inelastic demand?
When the price elasticity of demand equals zero and the quantity demanded does not respond to a change in price.
What is perfectly elastic demand?
When the price elasticity of demand equals infinity and the quantity demanded has an infinite response to a change in price.
What is the main difference between inelastic demand and elastic demand?
Inelastic demand has a small response in quantity demanded when price changes, while elastic demand has a large response in quantity demanded.
Test your understanding of price elasticity of demand with this microeconomics quiz. Learn about the concept of elasticity and how it measures the responsiveness of quantity demanded to changes in price. Explore the difference between inelastic and elastic demand through examples like insulin. Dr. Hakan Toksoy guides you through these concepts in this comprehensive quiz.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
