ECO 202

The size of the change in the quantity demanded of a good or service due to change in its price is measured by the elasticity of demand. When the percentage of change in the quantity demanded is greater than the percentage of the price change, the demand of good is ______?

A. elastic

The Total Revenue Test can also be used to determine the elasticity of demand for a good or service. Please determine the validity of this statement.

A. true

When the percentage of change of the quantity demanded for a good or service equals the percentage change in price, the good is _______?

A. unit elastic

Which of the following statements best describes how the Total Revenue Test functions to determine the elasticity of demand for a good or a service?

A. when the total revenue and price change has a positive relationship, the demand is inelastic.

When the percentage of change of the quantity demanded for a good or service does NOT vary when there is a percentage change in price, the good is _______?

C. perfectly inelastic

Although the slope of a demand curve doesn t equal the elasticity of demand for a good or a service, it can be used to illustrate elasticity. It would show how much a quantity demanded will respond to a change in price. The flatter the slope, the _______the response will be.

D. greater

When the percentage of change in the quantity demanded for a good or service varies from zero to infinity when there is a percentage change in price, the demand of a good is _______?

D. perfectly elastic

Please Study the following graph Demand Curves Illustrating Elasticity. Then decide Demand B represents a demand curve that is what?

D. perfectly elastic demand curve

The slope of a demand curve if calculated by rise over run will equal the calculated elasticity of demand for a good or service. Please determine the validity of this statement.

false

The size of the change in the quantity demanded of a good or service due to change in its price is measured by the elasticity of demand. When the percentage of change in the quantity demanded is less than the percentage of the price change, the demand of good is ______?

inelastic