What measures theresponsiveness of quantity demanded to a change in price?

Select one:

a.Total revenue.

b.Equilibrium price.

c.Price elasticity of demand.

d.Income elasticity.

e.Inelasticity.

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Theprice elasticity of demand coefficient is,technically,always negative, but for convenience - out of habit/preferences etc - economists ignore the minus sign.

Select one:

True

False

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What is true about theprice elasticity of demandforproducts such as sugar, salt and household electricity?

Select one:

a.It is perfectly elastic.

b.It is perfectly inelastic.

c.It is relatively elastic.

d.It is relatively inelastic.

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When is thepercentage change in quantity exactly equal to the percentage change in price?

Select one:

a.When there is unitary elasticity.

b.When demand is inelastic.

c.When demand is elastic.

d.When demand does not change.

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Whatterm is usedto describequantities demandedthat do not change muchinresponse to a change in price?

Select one:

a.Inelastic demand.

b.Elastic demand.

c.Unitary elasticity.

d.Price elasticity of demand.

e.The elasticity coefficient.

Which of the following statementsis true about the price elasticity of demand?

Select one:

a.It is higher in the short run than in the long run because people's habits change slowly.

b.It is higher in the long run than the short run because people have more time to find substitute products.

c.It is the same in the short run and the long run.

d.It is higher in the short run because markets adjust slowly to changes.

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What will happen to the quantity demandedif the price elasticity of demand is 2 and the price increases by 10 percent?

Select one:

a.It will increase by 10 percent.

b.It will decrease by 10 percent.

c.It will decrease by 20 percent.

d.It will increase by 20 percent.

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