Economics 211 – Clicker Questions

1. Economics 211 – Clicker Questions Chapter 5 – Question Set #1

2. A good with many close substitutes is likely to have an elastic demand because ______. • If the price rises, consumers can choose to purchase one of the close substitutes instead   • Consumers with brand loyalty won't change their buying habits, even if the price changes   • The laws of supply and demand will drive the equilibrium price down 24 of 24

3. For a good that is a necessity, • quantity demanded tends to respond substantially to a change in price. • demand tends to be inelastic. • the law of demand often does not apply. • All of the above are correct. 0 of 26

4. Price elasticity of demand for a good depends on how one defines the good. For example, one could look at the market for a particular kind of food, or the market for food in general. Of the following categories, which one has the LEAST elasticdemand? • Food   • Vegetables   • Bell peppers   • Red bell peppers 0 of 26

5. The demand for a good is more elastic • Over one day • Over one year • Over ten years • It doesn't matter, demand has the same elasticity over all time periods 0 of 26

6. Consumers tend to be more sensitive to changes in price when prices are relatively higher because • They cost more • The goods make up a greater percentage of their income • Consumers buy less of goods at higher prices • The law of demand 25 of 26