AMU ECON 201 Quiz 6 | Questions and
ANSWERs | Update | 100% Correct.
law of demand - ANSWER>>a higher price will lead to a lower quantity demanded
law of supply - ANSWER>>a higher price leads to higher quantity supplied
elasticity - ANSWER>>measures responsiveness of one variable to changes in another variable
price elasticity - ANSWER>>the ratio between the percentage change in the quantity demanded
(Qd) or quantity supplied (Qs) and the corresponding percent change in price
price elasticity of demand - ANSWER>>the percentage change in the quantity demanded of a
good or service divided by the percentage change in the price
price elasticity of supply - ANSWER>>the percentage change in the quantity supplied of a good
or service divided by the percentage change in the price
elastic, inelastic and unitary - ANSWER>>what are the three broad categories elasticities can be
divided into?
elastic demand/supply - ANSWER>>when the elasticity of a good or service is greater than one,
indicating a high responsiveness to changes in price
elastic equation - ANSWER>>% change in quantity/% change in price > 1
% change in quantity/% change in price > 1, and it is called elastic - ANSWER>>if % change in
quantity > % change in price then...
inelastic demand/supply - ANSWER>>when elasticity of a good or service is less than one,
indicating a low responsiveness to changes in prices
inelastic equation - ANSWER>>% change in quantity/% change in price < 1
% change in quantity/% change in price < 1, and it is called inelastic - ANSWER>>if % change in
quantity < % change in price, then...
ANSWERs | Update | 100% Correct.
law of demand - ANSWER>>a higher price will lead to a lower quantity demanded
law of supply - ANSWER>>a higher price leads to higher quantity supplied
elasticity - ANSWER>>measures responsiveness of one variable to changes in another variable
price elasticity - ANSWER>>the ratio between the percentage change in the quantity demanded
(Qd) or quantity supplied (Qs) and the corresponding percent change in price
price elasticity of demand - ANSWER>>the percentage change in the quantity demanded of a
good or service divided by the percentage change in the price
price elasticity of supply - ANSWER>>the percentage change in the quantity supplied of a good
or service divided by the percentage change in the price
elastic, inelastic and unitary - ANSWER>>what are the three broad categories elasticities can be
divided into?
elastic demand/supply - ANSWER>>when the elasticity of a good or service is greater than one,
indicating a high responsiveness to changes in price
elastic equation - ANSWER>>% change in quantity/% change in price > 1
% change in quantity/% change in price > 1, and it is called elastic - ANSWER>>if % change in
quantity > % change in price then...
inelastic demand/supply - ANSWER>>when elasticity of a good or service is less than one,
indicating a low responsiveness to changes in prices
inelastic equation - ANSWER>>% change in quantity/% change in price < 1
% change in quantity/% change in price < 1, and it is called inelastic - ANSWER>>if % change in
quantity < % change in price, then...
