Chapter 4-3: Elasticity of Demand

Last updated almost 8 years ago

13 questions

1

Library

Chapter 4-3: Elasticity of Demand

Last updated almost 8 years ago

13 questions

1

Define "elasticity of demand" in your own words:

1

If your demand for a good/service is inelastic then a large change in will lead to a change in

1

If demand for a good/service is unitary elastic then any % change in price will result in a(n) _______________ % change in quantity demanded.

1

If there are few or no substitutes of a good/service available then your demand is most likely to be ____________________ .

1

Your demand for "luxury goods" (things that you can easily live without) is most likely to be _____________ .

1

The principle of "change over time" refers to the fact that demand for products that might be considered necessities (e.g., gasoline), although in the short term may become more in the long term as people pursue substitutes.

1

If the demand for the product of a particular company is highly elastic then they will most likely experience a(n) __________________ in Total Revenue in response to an increase in price.

1

If something is elastic then it is: (may choose more than one)

stretchy

flexible

tight

unresponsive

Which of the following demonstrates the general characteristic of being "inelastic"?

rubber bands

trampolines

aluminum

gum

Define "elasticity of demand" in your own words:

If your demand for a good/service is inelastic then a large change in will lead to a change in

For which of the following goods/services would your demand most likely be inelastic?

gas

movies

Jimmy Johns

frozen pizza

If demand for a good/service is unitary elastic then any % change in price will result in a(n) _______________ % change in quantity demanded.

If there are few or no substitutes of a good/service available then your demand is most likely to be ____________________ .

Your demand for "luxury goods" (things that you can easily live without) is most likely to be _____________ .

The principle of "change over time" refers to the fact that demand for products that might be considered necessities (e.g., gasoline), although in the short term may become more in the long term as people pursue substitutes.

Demand for prescription drugs, especially those considered to be life-saving, is likely to be

highly elastic

relatively (somewhat) elastic

relatively (somewhat) inelastic

D

Demand for any one particular brand of cereal (Frosted Flakes/Lucky Charms/Raisin Bran/etc.) is likely to be

highly elastic

relatively (somewhat) elastic

relatively (somewhat) inelastic

highly inelastic

If the demand for the product of a particular company is highly elastic then they will most likely experience a(n) __________________ in Total Revenue in response to an increase in price.

The manufacturer of a prescription drug has a 10 year patent on production and sales of the life-saving medication (i.e., no competition). In response to an increase in price their Total Revenue will likely

increase.

decrease.

remain about the same.

D

If something is elastic then it is: (may choose more than one)

stretchy

flexible

tight

unresponsive

Which of the following demonstrates the general characteristic of being "inelastic"?

rubber bands

trampolines

aluminum

gum

For which of the following goods/services would your demand most likely be inelastic?

gas

movies

Jimmy Johns

frozen pizza

Demand for prescription drugs, especially those considered to be life-saving, is likely to be

highly elastic

relatively (somewhat) elastic

relatively (somewhat) inelastic

D

Demand for any one particular brand of cereal (Frosted Flakes/Lucky Charms/Raisin Bran/etc.) is likely to be

highly elastic

relatively (somewhat) elastic

relatively (somewhat) inelastic

highly inelastic

The manufacturer of a prescription drug has a 10 year patent on production and sales of the life-saving medication (i.e., no competition). In response to an increase in price their Total Revenue will likely

increase.

decrease.

remain about the same.

D

Chapter 4-3: Elasticity of Demand

Chapter 4-3: Elasticity of Demand

Define "elasticity of demand" in your own words:

If your demand for a good/service is inelastic then a large change in ____________ will lead to a ____________ change in

If demand for a good/service is unitary elastic then any % change in price will result in a(n) _______________ % change in quantity demanded.

If there are few or no substitutes of a good/service available then your demand is most likely to be ____________________ .

Your demand for "luxury goods" (things that you can easily live without) is most likely to be _____________ .

The principle of "change over time" refers to the fact that demand for products that might be considered necessities (e.g., gasoline), although ____________ in the short term may become more ____________ in the long term as people pursue substitutes.

If the demand for the product of a particular company is highly elastic then they will most likely experience a(n) __________________ in Total Revenue in response to an increase in price.

If something is elastic then it is: (may choose more than one)

Which of the following demonstrates the general characteristic of being "inelastic"?

Define "elasticity of demand" in your own words:

If your demand for a good/service is inelastic then a large change in ____________ will lead to a ____________ change in

For which of the following goods/services would your demand most likely be inelastic?

If demand for a good/service is unitary elastic then any % change in price will result in a(n) _______________ % change in quantity demanded.

If there are few or no substitutes of a good/service available then your demand is most likely to be ____________________ .

Your demand for "luxury goods" (things that you can easily live without) is most likely to be _____________ .

The principle of "change over time" refers to the fact that demand for products that might be considered necessities (e.g., gasoline), although ____________ in the short term may become more ____________ in the long term as people pursue substitutes.

Demand for prescription drugs, especially those considered to be life-saving, is likely to be

Demand for any one particular brand of cereal (Frosted Flakes/Lucky Charms/Raisin Bran/etc.) is likely to be

If the demand for the product of a particular company is highly elastic then they will most likely experience a(n) __________________ in Total Revenue in response to an increase in price.

The manufacturer of a prescription drug has a 10 year patent on production and sales of the life-saving medication (i.e., no competition). In response to an increase in price their Total Revenue will likely

If your demand for a good/service is inelastic then a large change in will lead to a change in

The principle of "change over time" refers to the fact that demand for products that might be considered necessities (e.g., gasoline), although in the short term may become more in the long term as people pursue substitutes.

If your demand for a good/service is inelastic then a large change in will lead to a change in

The principle of "change over time" refers to the fact that demand for products that might be considered necessities (e.g., gasoline), although in the short term may become more in the long term as people pursue substitutes.