Title: QUIZ: What is Elasticity? (1/3) -- Price Elasticity of Demand Video Explainers
Course: Andria Testing FRE2 > Section: What is Elasticity? (1/3) -- Price Elasticity of Demand Video Explainers

Q: When economists refer to elasticity, they are primarily concerned with __________.
- the stretchiness of rubber bands.
- the responsiveness of consumers to price changes.
- the durability of goods.
- the availability of substitutes.
A: the responsiveness of consumers to price changes.

Q: The law of demand states that __________.
- consumers tend to buy more of a good or service when its prices rises.
- consumers tend to buy more of a good or service when its price falls.
- consumers buy the same quantity regardless of price changes.
- consumers' preferences dictate market prices.
A: consumers tend to buy more of a good or service when its price falls.

Q: Price elasticity of demand measures how much __________.
- the price of a good changes over time.
- the supply of a good responds to changes in demand.
- consumers' incomes fluctuate.
- the quantity demanded changes in response to price changes.
A: the quantity demanded changes in response to price changes.

Q: Elastic demand means that __________.
- consumers are not sensitive to price changes.
- quantity demanded changes proportionately less than price changes.
- quantity demanded changes proportionately more than price changes.
- the price of the good remains constant.
A: quantity demanded changes proportionately more than price changes.

Q: Inelastic demand implies that __________.
- consumers are highly sensitive to price changes.
- quantity demanded changes proportionately less than price changes.
- quantity demanded changes proportionately more than price changes.
- the price of the good is fixed.
A: quantity demanded changes proportionately less than price changes.

Q: Unit elastic demand occurs when __________.
- quantity demanded remains constant despite changes in price.
- percentage change in quantity demanded is greater than percentage change in price.
- percentage change in quantity demanded equals percentage change in price.
- percentage change in quantity demanded is less than percentage change in price.
A: percentage change in quantity demanded equals percentage change in price.

Q: Which of the following goods is likely to have elastic demand?
- Luxury cars
- Basic food items
- Prescription medication
- Electricity
A: Luxury cars

Q: Factors influencing elasticity of demand include all of the following except __________.
- availability of substitutes.
- time horizon.
- consumer preference.
- government regulations.
A: government regulations.