Elasticity generally measures the slope of a curve. change in a variable. respon
ID: 1150866 • Letter: E
Question
Elasticity generally measures the
slope of a curve.
change in a variable.
responsiveness of a variable to a change in another variable.
percentage change in a variable.
The price elasticity of demand for a specific model of a luxury car is likely to be
elastic.
infinite.
inelastic.
0.
If a consumer is relatively insensitive to changes in the price of a good, then the consumer's demand for the good is
inelastic.
perfectly elastic.
unit elastic.
elastic.
For electricity, natural gas, or other forms of energy, it is very likely that the price elasticity of demand
is zero.
will decrease in magnitude as more time passes after a price change.
will increase in magnitude as more time passes after a price change.
is infinite.
slope of a curve.
change in a variable.
responsiveness of a variable to a change in another variable.
percentage change in a variable.
Explanation / Answer
Answer 1
Elasticity is a technical term to describe the degree of responsiveness of one variable to the change of the other.
Here, the third option is the correct answer.
Answer 2
The price elasticity for a specific model of a luxury car is Elastic. Because in this case to a percentage change in price there is more than proportionate change in quantity demanded.
So, the first option is correct.
Answer 3
If a consumer is relatively insensitive to the change in the price of a good , then the consumers demand for the good is inelastic. In this case to a percentage change in price, there is less than proportionate change in the quantity demanded.
So, the first option is the correct answer.
Answer 4
For Electricity, natural gas or other forms of energy, people may increase the use of these energy, the demand will be more elastic over time.
Here, the third option is correct.
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