Price Elasticity of Demand Measurement Quiz
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Questions and Answers

What type of demand is characterized by a large change in demand when there is a change in price?

  • Unitary elastic demand
  • Elastic demand (correct)
  • Perfectly elastic demand
  • Inelastic demand

    • If the price elasticity of a good is exactly 1, what type of elasticity does the good exhibit?

  • Unitary elasticity (correct)
  • Elastic
  • Inelastic
  • Perfectly elastic

    • What type of good has a price elasticity of 0 where no amount of price change produces a change in demand?

  • Inelastic good
  • Elastic good
  • Perfectly inelastic good (correct)
  • Unitary elasticity good

    • How is the availability of substitutes related to the elasticity of a product?

    <p>Availability of substitutes makes a product elastic</p> Signup and view all the answers

    If a good is perfectly elastic, what is its price elasticity value?

    <p>Infinite</p> Signup and view all the answers

    What type of demand is characterized by a small change in demand when there is a change in price?

    <p>Inelastic demand</p> Signup and view all the answers

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