Sie sind auf Seite 1von 4

7/18/2016

Test:EconomicsMankiwCh05Elasticity|Quizlet

NAME

5 Written questions
1. price is lower, incomes are higher, the prices of substitutes for the good are higher, prices of complements of the good are
lower.

2. how the quantity demanded of one good responds to a change in the price of another good. It is calculated as the percentage
change in quantity demanded of good 1 divided by the percentage change in the price of good 2.

3.

horizontal

4. remains constant

5. more; because it is easier to find close substitutes for narrowly defined goods. eg. Ice Cream vs. Foods. Mozart vs. Classical
Music

5 Matching questions
1.

Elasticity 2 is

2.

How the Price Elasticity of Supply can

vary?

3.

proportionately more than the price, the supply


curve has elasticity ____ than 1.

4.

greater

Quantity supplied changes

When demand is inelastic (a price elasticity


less than 1), price and total revenue move in the
_____ direction.

https://quizlet.com/26358061/test

b
a measure of how much buyers and sellers respond to changes
in market conditions.

c
the two goods are substitutes eg) hot dogs Qty up when
hamburger price increases.
1/4

7/18/2016

Test:EconomicsMankiwCh05Elasticity|Quizlet

5.

The cross-price elasticity is positive when

Because most factories have maximum capacity for production


due to size of the factory or process, the elasticity of supply may
be very high at low levels of quantity supplied and very low at
high levels of quantity supplied. Hence, upward bending supply
curve.

same

5 Multiple choice questions


1. Availability of Close Substitutes, Necessities versus Luxuries, Definition of the Market, and Time Horizon
a. Price elasticity of demand is
b. How the Price Elasticity of Supply can vary?
c. What influences the price elasticity of demand?
d. The income elasticity of demand measures
2. the quantity demanded responds only slightly to changes in the price... or ...% change in Quantity is less than % change in
price Elasticity <1
a. Price elasticity of demand is
b. Elasticity 2 is
c. Demand is said to be inelastic if
d. Demand for a good is said to be elastic if
3. a measure (percent change) of the responsiveness of quantity demanded or quantity supplied to a change in one of its
determinants (price or quantity)
a. Elasticity 2 is
b. Elasticity 1 is
c. total revenue
d. unit elasticity is when
4. At points with a low price and high quantity, the demand curve is inelastic.At points with a high price and low quantity, the
demand curve is highly elastic.
a. Midpoint method for calculating elasticities is to
b. Elasticity of a Linear Demand Curve which has constant slope has elasticity characteristic as
c. Demand for a good is said to be elastic if
d. The elasticity calculated from point A to point B seems different from the elasticity from point B to point A because

https://quizlet.com/26358061/test

2/4

7/18/2016

Test:EconomicsMankiwCh05Elasticity|Quizlet

5. a measure of how much the quantity demanded


of a good responds to a change in the price of
that good, computed as the percentage change
in quantity demanded divided by the percentage change in price
a. Price elasticity of demand is
b. unit elasticity is when
c. Price elasticity of supply compute as
d. Price elasticity of demand formular

5 True/False questions
1. Quantity supplied moves proportionately less than the price, so the elasticity is ____ than 1.

greater

True False
2. Price elasticity of demand formular a measure of how much the quantity demanded
of a good responds to a change in the price of
that good, computed as the percentage change
in quantity demanded divided by the percentage change in price

True False
3. Demand is considered inelastic when
the elasticity is ______ than 1

less

True False

https://quizlet.com/26358061/test

3/4

7/18/2016

Test:EconomicsMankiwCh05Elasticity|Quizlet

4. perfectly inelastic the demand curve is ______

vertical. "I"nelastic graph like letter "I".

True False
5. Demand is considered elastic when the elasticity is _______ than 1

less

True False

https://quizlet.com/26358061/test

4/4