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Fast true/false on demand elasticity

Created by

Montex
Montex
Canada

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Elasticity Quick Quiz
 

Elasticity Quick QuizOnline version

Fast true/false on demand elasticity

by Montex
1

Cross elasticity of demand measures how the quantity demanded of one good responds to the price change of another.

2

XED greater than 1 indicates complements.

3

A rise in the price of Good B will always decrease the demand for Good A regardless of their relationship.

4

Income elasticity of demand measures the responsiveness of quantity demanded to a change in income.

5

Normal goods have a positive income elasticity of demand.

6

The formula for YED is the percentage change in income divided by the percentage change in quantity demanded.

7

Complements have a negative cross elasticity of demand.

8

YED is used to predict how demand changes when prices change.

9

Inferior goods have positive income elasticity.

10

Luxury goods typically have an income elasticity greater than one.

 
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