Elasticity of Demand QuizVersión en línea Test your understanding of price elasticity por Kgomotso Diphare 1 The elasticity of demand for luxuries is always inelastic. Yes No 2 Elasticity of demand is calculated as (% change in quantity demanded) / (% change in price). Yes No 3 Cross-price elasticity of demand measures the change in quantity demanded of a good due to the price change of another good. Yes No 4 A vertical demand curve has Ed = ∞. Yes No 5 Elasticity of demand is always negative. Yes No 6 If price falls and total revenue increases, demand is elastic. Yes No 7 A perfectly inelastic demand curve has Ed = 0. Yes No 8 Elasticity varies along the demand curve, typically higher on the flatter portion. Yes No 9 If price rises and total revenue falls, demand is inelastic. Yes No 10 A demand with Ed = 1 is perfectly elastic. Yes No
