Podcast
Questions and Answers
What does the Price Elasticity of Demand measure?
What does the Price Elasticity of Demand measure?
- The responsiveness of quantity demanded to a change in price (correct)
- The income elasticity of demand
- The change in price of a good or service
- The total revenue from a good or service
How is the Price Elasticity of Demand calculated?
How is the Price Elasticity of Demand calculated?
- By multiplying the percentage change in quantity demanded with the percentage change in price
- By dividing the percentage change in quantity demanded by the percentage change in income
- By adding the percentage change in quantity demanded to the percentage change in price
- By dividing the percentage change in quantity demanded by the percentage change in price (correct)
Why is the Price Elasticity of Demand always expressed as a positive number?
Why is the Price Elasticity of Demand always expressed as a positive number?
- To indicate that demand always increases with price
- To avoid confusion
- To focus on the absolute value of the responsiveness (correct)
- To simplify calculations
How does elasticity affect demand analysis?
How does elasticity affect demand analysis?
What does the slope of a demand curve indicate?
What does the slope of a demand curve indicate?
What is the significance of substitution in determining elasticity of demand?
What is the significance of substitution in determining elasticity of demand?
What is the formula to calculate the price elasticity of demand?
What is the formula to calculate the price elasticity of demand?
When is demand considered to be unit elastic?
When is demand considered to be unit elastic?
What does it mean if demand is perfect inelastic?
What does it mean if demand is perfect inelastic?
What makes demand more or less elastic according to the text?
What makes demand more or less elastic according to the text?
What is the most important determinant of price elasticity according to the text?
What is the most important determinant of price elasticity according to the text?
Which curve represents perfect elastic demand according to the text?
Which curve represents perfect elastic demand according to the text?
For non-durable goods, demand is more elastic over a long period relative to a short period because:
For non-durable goods, demand is more elastic over a long period relative to a short period because:
What does it mean if a good has substitutes according to the text?
What does it mean if a good has substitutes according to the text?
"Elasticity is not the same as slope, but, the steeper a curve is at a given point, the less elastic demand." This statement implies that:
"Elasticity is not the same as slope, but, the steeper a curve is at a given point, the less elastic demand." This statement implies that:
What is the formula to calculate the price elasticity of demand?
What is the formula to calculate the price elasticity of demand?
When is demand considered to be unit elastic?
When is demand considered to be unit elastic?
How does elasticity affect demand analysis?
How does elasticity affect demand analysis?
What makes demand more or less elastic according to the text?
What makes demand more or less elastic according to the text?
"Elasticity is not the same as slope, but, the steeper a curve is at a given point, the less elastic demand." This statement implies that:
"Elasticity is not the same as slope, but, the steeper a curve is at a given point, the less elastic demand." This statement implies that:
What does it mean if a good has substitutes according to the text?
What does it mean if a good has substitutes according to the text?
What is the price elasticity of demand if the percentage change in quantity is greater than the percentage change in price?
What is the price elasticity of demand if the percentage change in quantity is greater than the percentage change in price?
What is the price elasticity of demand if the percentage change in quantity is less than the percentage change in price?
What is the price elasticity of demand if the percentage change in quantity is less than the percentage change in price?
When is demand considered to be unit elastic?
When is demand considered to be unit elastic?
What is demand considered to be if the quantity does not respond at all to changes in price?
What is demand considered to be if the quantity does not respond at all to changes in price?
What is demand considered to be if the quantity responds enormously to changes in price?
What is demand considered to be if the quantity responds enormously to changes in price?
According to the text, what makes demand more or less elastic?
According to the text, what makes demand more or less elastic?
Why is demand more elastic over a long period relative to a short period for non-durable goods?
Why is demand more elastic over a long period relative to a short period for non-durable goods?
Why is the demand for products like salt considered quite inelastic?
Why is the demand for products like salt considered quite inelastic?
What does the slope of a demand curve indicate according to the text?
What does the slope of a demand curve indicate according to the text?
What does substitution have the most significant impact on, according to the text?
What does substitution have the most significant impact on, according to the text?
