5 Questions
When is demand for a good considered inelastic?
When the elasticity is less than one in absolute value
What does a price elasticity of -2 indicate?
A one percent price rise leads to a two percent decline in quantity demanded
What does 'more elastic' mean in terms of price elasticity?
A good's elasticity has greater magnitude, ignoring the sign
Which goods are rare exceptions to the law of demand with positive elasticity?
Veblen and Giffen goods
What does a negative price elasticity indicate?
$E_d$ is negative except in special cases
Test your knowledge of price elasticity of demand with this quiz. Learn about how sensitive quantity demanded is to price changes and the calculation of price elasticity.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
