Chapter 4-3: Elasticity of Demand

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13 questions
1

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

1

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

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

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

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

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

1

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

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

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