1. Microeconomic Foundations
Elasticity — Quiz
Test your understanding of elasticity with 5 practice questions.
Practice Questions
Question 1
Which type of elasticity measures the responsiveness of quantity demanded to a change in price?
Question 2
If the Price Elasticity of Demand (PED) for a product is greater than 1, what does this indicate about the product?
Question 3
A firm increases the price of its product by $10\%$ and observes a $20\%$ decrease in the quantity demanded. What is the Price Elasticity of Demand (PED)?
Question 4
If the Income Elasticity of Demand (YED) for a good is positive, what type of good is it considered?
Question 5
When the Cross Elasticity of Demand (XED) between two goods is positive, what is the relationship between these goods?