micro drills10 questions
Price Elasticity of Demand — Practice Set 1
Elasticity turns the demand curve into a number. Practice the midpoint formula, the elasticity categories, and the total-revenue test.
Q1.
Price elasticity of demand is calculated as:
Multiple choice · Foundations
Q2.
Using the midpoint formula, if price rises from 12 and quantity falls from 100 to 80, elasticity is approximately:
Multiple choice · Intermediate
Q3.
If |Ed| > 1, demand is described as:
Multiple choice · Foundations
Q4.
A good with many close substitutes tends to have ___ demand.
Multiple choice · Intermediate
Q5.
Demand for a good is more elastic:
Multiple choice · Intermediate
Q6.
If demand is elastic and price rises, total revenue will:
Multiple choice · Intermediate
Q7.
If demand is inelastic and price falls, total revenue will:
Multiple choice · Intermediate
Q8.
Unit-elastic demand means:
Multiple choice · Intermediate
Q9.
Along a linear demand curve, elasticity ___ as price falls.
Multiple choice · Advanced
Q10.
A vertical demand curve has elasticity equal to:
Multiple choice · Foundations