2. Supply and Demand
Elasticity — Quiz
Test your understanding of elasticity with 5 practice questions.
Practice Questions
Question 1
What does a price elasticity of demand (PED) value of less than 1 indicate?
Question 2
If the price of a good increases and the quantity demanded decreases slightly, what can be inferred about its price elasticity?
Question 3
What does a positive income elasticity of demand (YED) indicate about a good?
Question 4
Which of the following would likely cause the demand for a product to become more elastic?
Question 5
If the cross-price elasticity of demand (XED) between two goods is negative, what does this indicate?