Elasticity Essentials Quiz

Froggy Jumps

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Test your elasticity knowledge.

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Olivia Cuscuna

Canadá

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Froggy Jumps Elasticity Essentials QuizVersión en línea Test your elasticity knowledge. por Olivia Cuscuna 1 What does a positive income elasticity indicate for a good? a It's a normal good (demand rises with income). b It's an inferior good (demand falls with income). c It has no relation to income. 2 What does a negative income elasticity indicate? a The good is inferior (demand falls as income rises). b The good is normal (demand rises with income). c Income elasticity is irrelevant. 3 Cross price elasticity measures the response of demand to. a Supply changes b Income changes c Price changes of another good. 4 If two goods are complements, their cross-price elasticity is: a Positive b Zero c Negative 5 If two goods are substitutes, their cross-price elasticity is: a Positive b Zero c Negative 6 Price elasticity of demand for a product is elastic if the elasticity value is: a Less than 1 b Exactly 0 c Greater than 1 7 What determines demand elasticity in practice? a Regulatory status only b Availability of close substitutes c Brand loyalty only 8 What happens to total revenue if demand is elastic when price falls? a Total revenue stays the same b Total revenue increases c Total revenue decreases 9 In the long run, supply tends to be more elastic because: a Demand is uncertain b Firms have more time to adjust c Prices are fixed long-term 10 Which factor helps determine supply elasticity? a Ease of entry/exit for firms b Color of packaging c Brand name only

Froggy Jumps

Elasticity Essentials QuizVersión en línea

Test your elasticity knowledge.

por Olivia Cuscuna

What does a positive income elasticity indicate for a good?

It's a normal good (demand rises with income).

It's an inferior good (demand falls with income).

It has no relation to income.

What does a negative income elasticity indicate?

The good is inferior (demand falls as income rises).

The good is normal (demand rises with income).

Income elasticity is irrelevant.

Cross price elasticity measures the response of demand to.

Supply changes

Income changes

Price changes of another good.

If two goods are complements, their cross-price elasticity is:

Positive

Zero

Negative

If two goods are substitutes, their cross-price elasticity is:

Positive

Zero

Negative

Price elasticity of demand for a product is elastic if the elasticity value is:

Less than 1

Exactly 0

Greater than 1

What determines demand elasticity in practice?

Regulatory status only

Availability of close substitutes

Brand loyalty only

What happens to total revenue if demand is elastic when price falls?

Total revenue stays the same

Total revenue increases

Total revenue decreases

In the long run, supply tends to be more elastic because:

Demand is uncertain

Firms have more time to adjust

Prices are fixed long-term

Which factor helps determine supply elasticity?

Ease of entry/exit for firms

Color of packaging

Brand name only

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Elasticity Essentials Quiz

Froggy Jumps

Sobre esta actividad

Creada por

Descarga la versión para jugar en papel

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Elasticity Essentials QuizVersión en línea

por Olivia Cuscuna

What does a positive income elasticity indicate for a good?

What does a negative income elasticity indicate?

Cross price elasticity measures the response of demand to.

If two goods are complements, their cross-price elasticity is:

If two goods are substitutes, their cross-price elasticity is:

Price elasticity of demand for a product is elastic if the elasticity value is:

What determines demand elasticity in practice?

What happens to total revenue if demand is elastic when price falls?

In the long run, supply tends to be more elastic because:

Which factor helps determine supply elasticity?

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