1. Microeconomics
Price Elasticity — Quiz
Test your understanding of price elasticity with 5 practice questions.
Practice Questions
Question 1
Which factor is most likely to increase the price elasticity of demand for a good?
Question 2
Given price falls from \$50 to \$40 and quantity demanded rises from 200 to 260, what is the price elasticity of demand using the midpoint formula?
Question 3
At a price of \$5, a supply function $Q_s=50+10P$ yields what price elasticity of supply?
Question 4
If demand elasticity is $E_d=-1.5$ and supply elasticity is $E_s=0.5$, what fraction of a per-unit tax is borne by consumers?
Question 5
Which statement best describes the relationship between elasticity and deadweight loss of a per-unit tax?