Which of these measures the responsiveness of the quantity of one good demanded to an increase in the price of another goods .
Price elasticity
Income elasticity
Cross elasticity
None of these
PED =
Percentage change in quantity demanded / Percentage change in Price
Percentage change in demanded / Percentage change in supply
Percentage quantity demanded / Percentage change in Price
Percentage quantity demanded / Percentage change in demand
The demand curve in the figure above illustrates the demand for a product with:
Zero price elasticity of demand at all price .
Infinite price elasticity of demand
Unit price elasticity of demand at all prices
A virtual demand curve has :
Unit elasticity
Infinite elasticity
Zero elasticity
Varying elasticity
The price elasticity of demand depends on :
The units used to measure price and the units used to measure quantity .
The units used to measure price but not the units used to measure quantity .
The units used to measure quantity but not the units used to measure price .
Neither the units used to measure price nor the units used to measure quantity .
Complementary goods have :
The same elasticities of demand
Very low price elasticities of demand
Negative cross price elasticities of demand with respect to each others .
Demand is perfectly inelastic when:
Shift is the supply curve results in no change in price .
The good in question has perfect substitutes.
Shift of the supply curve results in no change in quantity demanded .
The price elasticity of demand is defined as the absolute value of the ratio of :
Price over quantity demanded
Change in price over change in quantity demanded
Percentage change in quantity demanded over the percentage change in Price
Change in price over change in quantity supply
Unit elastic demand :
Means that the ratio of change in the quantity demanded to a change in the price equals 1
Means that the ratio of a percentage change in the quantity demanded to a percentage change in the price equals 1
Will be vertical
Will be horizontal
The demand curve in the figure above illustrates a product whose demand has a price elasticity of demand equal to
Zero at all prices
Infinity
Once at all prices
A different amount at different prices .
