Quiz Elasticity

In the following questions, choose the correct answer.

Recall that Price Elasticity of Demand (Ed) is the % change in quantity demanded divided by the % change in price, where:

Ed > 1 is elastic, Ed < 1 inelastic, Ed = 1 unit elastic

Price elastic goods are responsive to changes in price, where inelastic goods are not.  

Note that we use the absolute value in stating Ed.

You have 60 minutes to answer the 5 questions.