Question 1

Which statement is (are) true about the elasticity?

a. Necessities like food and housing tend to have an inelastic demand.

b. Normal goods refer to the goods and services that have income elasticity less than zero.

c. The longer the time that has elapsed since a price change, the more elastic is

d. Perfectly elastic supply induces large price change even with a small change in demand

Group of answer choices

b and c

b c and d

a and c

b and d

a b and d

Question 2

The demand for a particular brand of tooth pastewill likely be

Group of answer choices

Less elastic than the demand for tooth paste in general, because tooth paste is a necessity.

More elastic than the demand for tooth paste in general, because a particular brand has close substitutes.

Less elastic than the demand for tooth paste in general, because a particular brand has close substitutes.

More elastic than the demand for tooth paste in general, because tooth paste is a necessity.

Question 3

Before looking at the price, Tom says, "I'd like 10 gallons of gas.". What is each Tom's price elasticity of demand?

Group of answer choices

1

between 0 & 1

0

infinite