# Microeconomics Module 7

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question
Generally, we calculate elasticity as the:
percentage change in quantity demanded/supplied divided by the percentage change in price.
question
If the elasticity of demand for baseball games is -0.57, then one can conclude that demand for baseball games is:
inelastic
question
For which of the following products is demand likely to be the most elastic?
Converse All Star sneakers
question
The passage of time increases the elasticity of demand for many goods because:
time allows people to discover more substitutes for goods.
question
Identify the item most likely to be a luxury good among the four mystery items:
Item A: price elasticity of demand = -2.3
question
When interpreting the Ed value as either elastic or inelastic, we look at the
absolute value of the Ed coefficient (dropping the negative sign).
question
If the absolute value of the price elasticity of demand for a good is .75, the demand for that good is described as
inelastic.
question
The price elasticity of demand is a measure of the
responsiveness of buyers of a good to changes in its price.
question
The price elasticity of demand is negative because of
the law of demand.
question
The concept of price elasticity of demand measures the
sensitivity of consumer purchases to price changes.
question
If this demand schedule were graphed, we would find that
its slope is constant throughout.
question
We would expect