Practice Types (2.3.2) - Theory of Demand and Supply

Practise this section

10 questions

Flashcard drill
2 cards from this section. Quick, good the night before a test.
Exercise
6 questions · about 4 min · pass mark 70%. Hints available.
Sign up to start the exercise
Quiz
4 questions · about 3 min · pass mark 70%. Hints available.
Sign up to start the quiz

6 sample questions

Question 1.
Define elastic demand.
Show hintHide hint
Think about products people can easily substitute.
Question 2.
What is inelastic demand?
Show hintHide hint
Consider essential goods.
3Question 3.
What characterizes elastic demand?
- A small price change has a large effect.
- Price change has no effect.
- High need for the product.
Show hintHide hint
Think about luxury vs. necessity.
4Question 4.
True or False: Inelastic demand is mostly associated with luxury goods.
- True
- False
Show hintHide hint
Consider basic versus luxury items.
Question 5.
Assuming the price of soda increases by 50%, and the quantity demanded falls by 80%. Is the demand for soda elastic or inelastic? Explain your reasoning.
Show hintHide hint
Calculate the responsiveness.
Question 6.
You run a bakery that sells loafs of bread. If the price increases by 10% and the quantity demanded decreases by only 2%, how would you classify the demand for bread?
Show hintHide hint
Think about necessities and how they respond to price changes.

6 more questions in this section. Enroll free to practise them all.