Economics 202 Module 3.7
Which of the following statements about the price elasticity of demand along a downward-sloping linear demand curve is true?
It is elastic at high prices and inelastic at low prices
Which of the following goods is likely to have the highest price elasticity of demand?
Pizza
f a 1% change in the price of a good causes a 1% change in the quantity demanded, the good has an elasticity of demand
equal to 1
If demand is inelastic, the absolute value of the price elasticity of demand is
less than one
Higher price elasticity of demand means that a consumer's demand is:
more responsive to price changes
If the demand for a steak is unit elastic, then
the percentage change in quantity demanded is equal to the percentage change in price
Which of the following statements correctly differentiates between the slope of the demand curve and price elasticity of demand along a linear demand curve?
The price elasticity of demand for a good varies along the demand curve, whereas the slope of the demand curve remains the same at different points on the curve
If at a price of $24, Octavia sells 36 home-grown orchids and at $30 she sells 24 home-grown orchids, the demand for her orchids is
elastic
When the price of tortilla chips rose by 10 percent, the quantity of tortilla chips sold fell 4 percent. This indicates that the demand for tortilla chips is
inelastic
If the demand for cell phone service is inelastic, then
the percentage change in quantity demanded is less than the percentage change in price (in absolute value)
