Which one of the following is true regarding price elasticity of demand?
A. It determines the relationship between price and taxes.
B. It determines the relationship between supply and demand.
C. It can be calculated by dividing price by supply.
D. It is a relationship between price changes and the responsiveness of consumers to those changes.
E. It determines the value of supply for firms.
If the price of a movie ticket increased by three percent and the quantity demanded decreased by one percent,
we could say that:
A. The tickets are elastic.
B. The tickets are inelastic.
C. The tickets are unitary elastic.
D. The quantity demanded is not affected.
E. None of the above.
Which one of the following is true regarding price elasticity of demand?
A. It does not measure the relationship between complementary products.
B. It measures the value of inflation.
C. It does not measure the relationship between substitutes.
D. It measures the relationship between price changes and quantity demanded.
E. None of the above.
Which one of the following could typically be inelastic in demand?
A. Automobiles
B. Houses
C. Vacations
D. Prescription medication
E. Gourmet meals
Which one of the following is true regarding price elasticity of supply?
A. It measures the responsiveness demand has to supply.
B. It measures the responsiveness supply has to inflation.
C. It measures the responsiveness quantity demanded has to prices.
D. It measures the responsiveness quantity supplied has to prices.
E. It measures the responsiveness prices have to quantity demanded.
Which one of the following is a determinant of price elasticity of demand?
A. Tastes and preferences of consumers
B. The time period
C. Technology
D. Unemployment
E. Inflation
