Price elasticity of demand measures how quantity demanded responds to changes in ________., Income, Price itself, Price of other product, Taste, If Price elasticity of demand (PED) > 1, demand is considered, Inelastic, Elastic, Unitary , Perfectly elastic, When PED = 1, demand is said to be ________., Inelastic, Elastic, Unitary, Perfectly Elastic, If a small change in price causes quantity demanded to drop to zero, demand is:, Inelastic, Elastic, Perfectly elastic, Perfectly Inelastic, If Price Elasticity of Demand < 1, demand is ________., Inelastic, Elastic, Perfectly Inelastic, Perfectly elastic , Goods that are luxury items usually have demand that is ________., Elastic, Inelastic, Necessity goods such as rice or medicine tend to have ________ demand, Elastic, Inelastic, Cross elasticity of demand measures how quantity demanded of one good responds to changes in ________., Price, Income, Price of other good, Taste, If cross elasticity of demand is positive, the two goods are, Substitute, Complementary, Not related, Normal, If cross elasticity of demand is negative, it means the goods are:, Substitute, Complement, Not related, Independent, Income elasticity of demand (YED) measures changes in demand due to changes in ________., Income, Output, Price, Price of other good, If Income elasticity of demand > 1, the good is considered a ________., Normal, Luxury, Necessity, Inferior, If Price Elasticity of supply > 1, supply is considered ________., Inelastic, Elastic, Unitary, Perfectly elastic, Supply tends to be more elastic in the ________., Short run, Long run, If Price Elasticity of Supply = 0, supply is said to be ________., Perfectly elastic, Perfectly inelastic, If Price Elasticity of Demand is high, consumers are very responsive to price changes., True, False, If demand is inelastic, a price increase will decrease total revenue., True, False, Cross elasticity of demand can be positive or negative depending on the relationship between goods., True, False, Supply is generally more elastic in the long run because producers have more time to adjust., True, False, A negative Income elasticity of demand indicates that the good is inferior., True, False.

CHAPTER : ELASTICITY

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