Price Elasticity of Demand Quiz

When the elasticity is negative

When the elasticity is equal to zero

When the elasticity is greater than one

When the elasticity is less than one in absolute value (correct)

A one percent price rise leads to a two percent increase in quantity demanded

A two percent price rise leads to a one percent decline in quantity demanded

A one percent price rise leads to a two percent decline in quantity demanded (correct)

A two percent price rise leads to a one percent increase in quantity demanded

A good's elasticity has smaller magnitude, ignoring the sign

A good's elasticity has greater magnitude, ignoring the sign (correct)

A good's elasticity has smaller magnitude, considering the sign

A good's elasticity has greater magnitude, considering the sign

<p>Veblen and Giffen goods</p> Signup and view all the answers

<p>$E_d$ is negative except in special cases</p> Signup and view all the answers