Price Elasticity of Demand Quiz
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Questions and Answers

If the price elasticity of demand (PED) for a good is -1.5, what does this indicate?

  • The demand for the good is elastic
  • The demand for the good is inelastic (correct)
  • The demand for the good is unit elastic
  • The demand for the good is perfectly elastic

    • What does a price elasticity of -0.5 for a good imply?

  • The demand for the good is unit elastic
  • The demand for the good is perfectly inelastic
  • The demand for the good is elastic (correct)
  • The demand for the good is inelastic

    • Which type of goods are exceptions to the law of demand by having positive elasticity?

  • Normal goods
  • Veblen and Giffen goods (correct)
  • Luxury goods
  • Inferior goods

    • If a good has an elasticity of 0.8, how is the demand classified?

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

    What does it mean if a good has a price elasticity of demand of -2?

    <p>The good has elastic demand</p> Signup and view all the answers

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