Questions and Answers
Other things remaining the same, the higher the price of a good, the smaller is the quantity ______
demanded
A fall in the price, other things remaining the same, brings an increase in the quantity ______
demanded
If you demand something, then you 1. Want it, 2. Can afford it, and 3. Have made a definite plan to ______
buy it
A demand curve shows the relationship between the quantity demanded of a good and its ______ when all other influences on consumers’ planned purchases remain the same
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Wants are the unlimited desires or wishes people have for goods and ______
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What is the formula for calculating price elasticity of demand?
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What does a large fall in price and a small increase in quantity demanded indicate about the price elasticity of demand?
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What does a small fall in price and a large increase in quantity demanded indicate about the price elasticity of demand?
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How is the change in price expressed when calculating price elasticity of demand?
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What does the need for a measure of responsiveness of quantity demanded to a price change highlight?
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