5 Questions
If the price elasticity of demand (PED) for a good is -1.5, what does this indicate?
The demand for the good is inelastic
What does a price elasticity of -0.5 for a good imply?
The demand for the good is elastic
Which type of goods are exceptions to the law of demand by having positive elasticity?
Veblen and Giffen goods
If a good has an elasticity of 0.8, how is the demand classified?
Inelastic
What does it mean if a good has a price elasticity of demand of -2?
The good has elastic demand
Test your understanding of price elasticity of demand with this quiz. Explore how changes in price affect quantity demanded and the concept of elasticity.
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