2. Supply and Demand
Elasticity Concepts — Quiz
Test your understanding of elasticity concepts with 5 practice questions.
Practice Questions
Question 1
If the price of a product increases by $15\%$ and the quantity demanded decreases by $10\%$ , what is the price elasticity of demand (PED)?
Question 2
Which of the following describes a good with an income elasticity of demand (YED) of $0.8$?
Question 3
If the cross-price elasticity of demand between good A and good B is $-0.5$ , what is the relationship between these two goods?
Question 4
A firm is considering a price increase for its product. If the demand for its product is unit elastic, what will be the effect on its total revenue?
Question 5
Which of the following factors is most likely to make the supply of a good elastic?