6/23/24, 7:48 PM Elasticity | Quizizz

Worksheets Name

Elasticity
Class
Total questions: 35
Worksheet time: 29mins
Date
Instructor name: Samantha Correia

1. To determine whether two goods are substitutes or complements, an economist would

estimate the

a) Income elasticity of demand. b) Price elasticity of demand.

c) Cross-elasticity of demand d) Price elasticity of supply.

2. You are on a committee that is considering ways to raise money for your House's fundraiser.
You would recommend increasing the price of raffe tickets only if you thought the demand
curve for these tickets was

a) Perfectly Elastic b) Unit Elastic

c) Elastic d) Inelastic

3. Which of the following is most likely to have a negative income elasticity of demand?

a) Day-old bakery goods at a discount bakery. b) Vacations.

c) Fancy restaurant meals. d) New cars.

4. Income elasticity measures

a) how a good's quantity demanded responds b) how a good's quantity demanded responds
to producers' incomes. to change in buyers' incomes.
c) how a good's quantity demanded responds d) how a good's quantity demanded responds
to change in the price of another good. to change in the goods price.

5. The cross elasticity of demand between Coca-Cola and Pepsi is

a) negative, that is, Coke and Pepsi are b) negative, that is, Coke and Pepsi are
complements. substitutes.
c) positive, that is, Coke and Pepsi are d) positive, that is, Coke and Pepsi are
complements. substitutes.

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6. The elasticity of supply measures the responsiveness of

a) quantity supplied to changes in demand. b) quantity demanded to changes in supply.

c) quantity supplied to changes in income. d) quantity supplied to changes in price.

7.
The above figure illustrates the demand curve for a good. The good has

a) many substitutes. b) only one substitute.

c) no substitutes. d) only a few substitutes.

8. The formula for calculating elasticity of demand is:

a) The % change in quantity demanded over b) The change in quantity demanded over the
the % change in price change in price
c) The change in price over the change in d) The % change in price over the % change in
quantity demaned quantity demanded

9. The supply of perishable good such as bananas is more price _______ than durable goods such
as smart phones because of lack of ________ for perishable goods.

a) elastic, good weather b) elastic, stock

c) inelastic, stock d) inelastic, good weather

10. When a factory is running at full capacity, it means all its machinery is ________ utilised and the
supply of the good will be price _______.

a) fully, inelastic b) under, elastic

c) fully, elastic d) under, inelastic

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11. PES is defined as

a) the responsiveness of quantity demanded b) the responsiveness of quantity demanded

to a change in price of the good itself, to a change in price of the good itself.
ceteris paribus.
c) the responsiveness of quantity supplied to d) the responsiveness of quantity supplied to
a change in the price of good itself, ceteris a change in price of the good itself.
paribus.

12. When is the price elasticity of demand for a good likely to be high?

a) When the good has few uses b) When expenditure on the good is a small
part of total expenditure
c) When there are many substitutes for the d) When the good is habit-forming
good

13.
This curve shows

a) Inelastic Demand b) Elastic Demand

14. The elasticity of demand for tissues is 0.66. This means the demand for tissues is

a) unit elastic b) elastic

c) really expensive d) inelastic

15. Income elasticity of demand measures how

a) consumer purchasing power is affected by b) the quantity demanded changes as

a change in the price of a good. consumer income changes.
c) the price of a good is affected when there d) many units of a good a consumer can buy
is a change in consumer income. given a certain income level.

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16. What will happen during a recession?

a) Demand for substitute goods will fall and b) Demand for substitute goods and inferior
inferior goods will rise goods will rise
c) Demand for substitute goods and inferior
goods will fall

17. The longer the adjustment period, the greater the consumers' ability to substitute relatively
higher-priced products with lower-priced substitutes.

a) False b) True

18. For a particular good, a 12 percent increase in price causes a 3 percent decrease in quantity
demanded. Which of the following statements is most likely applicable to this good?

a) The market for the good is narrowly b) The relevant time horizon is long.
defined.
c) The good is a necessity. d) There are many substitutes for this good.

19. The price elasticity of demand measures how much

a) price responds to a change in demand. b) quantity demanded responds to a change

in price.
c) quantity demanded responds to a change d) demand responds to a change in supply.
in income.

20. Income elasticity of demand measures how

a) consumer purchasing power is affected by b) the price of a good is affected when there
a change in the price of a good. is a change in consumer income.
c) many units of a good a consumer can buy d) the quantity demanded changes as
given a certain income level. consumer income changes.

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21. An advance in farm technology that results in an increased market supply is

a) good for farmers because it raises prices b) bad for farmers because total revenue will
for their products but bad for consumers fall and bad for consumers because
because it raises prices consumers pay for farmers will raise the price of food to
food. increase their total revenue.
c) bad for farmers because total revenue will d) good for farmers because it raises prices
fall but good for consumers because prices for their products and also good for
for food will fall. consumers because more output is
available for consumption.

22. A 10 percent decrease in income decreases the quantity demanded of scented candles by 3
percent. The income elasticity of demand for scented candles is:

a) 0.3 b) 3
c) -3.3 d) -0.3

23. People buy less of them when they are well off but more of them during hard times. This
describes .............

a) Luxury goods b) Normal goods

c) Inferior goods d) Natural goods

24. During a recession, demand for luxury goods will fall sharply.

a) True b) False

25. Goods tend to have a more __________ demand over a longer period of time.

a) inelastic b) generous
c) solid d) elastic

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26.
According to the graph, a 22% increase in price leads to a 10% increase in quantity supplied,
you know that supply is

a) perfectly inelastic b) elastic

c) unit elastic d) inelastic

27. If cross price elasticity of of good a and good b is -2. What does this mean about good a and b?

a) They are complements b) They are inferior goods

c) They are not related d) They are substitutes

28. If income elasticity is .4 what can we assume about this good?

a) it is a substitute b) it is an inferior good

c) it is a complement d) it is a normal good

29. If you have plenty of choice, and substitutes, the demand curve is

a) Rubber b) Inelastic
c) Perfectly Inelastic d) Elastic

30. Which of the following is NOT a determinant for demand elasticity?

a) a good's relative importance b) whether or not it is a luxury vs. a necessity

c) change in population d) the availability of substitutes

31. Water has seen an increase in demand 8% this summer, while the price has decreased 12%

a) 1.5 inelastic b) .67 elastic

c) 1.5 elastic d) .67 inelastic

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32. If the cross elasticity of demand is -2:

a) The products are unrelated b) The products are substitutes

c) The products are complements d) The products are unitary elastic

33. If a rise in the price of good A decreases the quantity of good B demanded,

a) The cross elasticity of demand is negative. b) The cross elasticity of demand is positive.
c) Good A is an inferior good. d) Good B is an inferior good.

34. If the cross elasticity of demand between goods A and B is positive,

a) A and B are substitutes. b) A and B are complements.

c) The demands for A and B are both price d) The demands for A and B are both price
elastic. inelastic.

35. What is the difference between normal and inferior goods?

a) Demand for normal goods decreases when b) Demand for inferior goods decreases
income increases and demand for inferior when income decreases and demand for
goods increases when income increases normal goods increases when income
increases
c) Demand for normal goods increases when d) Demand for inferior goods decrease when
income decreases and demand for inferior income increases and demand for normal
goods increases when income increases goods increase when income increases

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