1. Which term do economists use to represent responsiveness of one variable to a change in another variable?

• a. Sustainability
• b. Remarkability
• c. Susceptibility
• d. Elasticity

16. A horizontal demand curve is said to be perfectly inelastic.

• a. True
• b. False

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17. If price elasticity of demand equals 1.5, then we call this _____.

• a. perfectly inelastic demand
• b. inelastic demand
• c. unit elastic demand
• d. elastic demand

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18. (Assume Qd is quantity demanded, and P is price.) The best way to calculate a price elasticity of demand is: (Qd2 - Qd1) / (P2 - P1).

• a. True
• b. False

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19. If, other things being equal, the % change in P is -5% and the associated % change in Qd is 10%, what is the price elasticity of demand? Assume the minus sign matters.

• a. -2.0
• b. -0.5
• c. 0.5
• d. 2.0

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20. Elastic demand means any value of elasticity less than 1.

• a. True
• b. False