Title: QUIZ: Elasticity of Demand -- Economic Lowdown Audio Series
Course: Andria Testing FRE2 > Section: Elasticity of Demand -- Economic Lowdown Audio Series

Q: Price elasticity of demand is a measure of how sensitive, or responsive, ________ are to a change in price.
- producers
- bankers
- consumers
- regulators
A: consumers

Q: If the percent change in quantity demanded is greater than the percent change in price, the demand for the good is considered relatively _________.
- unit elastic
- elastic
- inelastic
- non-elastic
A: elastic

Q: If the percent change in quantity demanded is less than the percent change in price, the demand for the good is considered relatively _________.
- unit elastic
- elastic
- inelastic
- non-elastic
A: inelastic

Q: If the percent change in quantity demanded is equal to the percent change in price, the demand for the good is considered _________.
- unit elastic
- elastic
- inelastic
- non-elastic
A: unit elastic

Q: The demand for necessities tends to be more _________ than luxuries.
- pricey
- elastic
- unit elastic
- inelastic
A: inelastic

Q: Which of these is not a factor of price elasticity of demand?
- Portion of your income the product takes
- Availability of close complements to the product
- Time
- Availability of close substitutes
A: Availability of close complements to the product

Q: Demand for cigarettes tends to be price inelastic. If the government increased the cigarette tax, what would likely happen?
- Quantity demanded would decrease slightly and tax revenues would decrease.
- Quantity demanded would increase slightly and tax revenues would increase.
- Quantity demanded would decrease slightly and tax revenue would increase.
- Quantity demanded would increase slightly and tax revenues would decrease.
A: Quantity demanded would decrease slightly and tax revenue would increase.