macro t 7

Slides (10)

1. 1 - Pick Answer Which statement about price elasticity of supply (PES) is true if PES = 1.8?

   1. Supply is inelastic

   2. Supply is unit elastic

   3. Supply is perfectly elastic

   4. Supply is elastic

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3. 3 - Pick Answer What does a Price Elasticity of Supply (PES) value of 1.8 indicate about supply elasticity?

   1. Supply is inelastic

   2. Supply is perfectly inelastic

   3. Supply is elastic

   4. Supply is unit elastic

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5. 5 - Pick Answer Why do luxury goods typically have a high Price Elasticity of Demand (PED)?

   1. They are necessities for consumers.

   2. They are essential goods with fixed prices.

   3. They have many substitutes available.

   4. They are often subject to changes in consumer income.

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7. 7 - Pick Answer How would you describe an inelastic supply curve?

   1. It is a horizontal line indicating perfect elasticity.

   2. It slopes downwards indicating demand change influences supply directly.

   3. It is flat and shows significant change in quantity supplied with price change.

   4. It is steep and shows minimal change in quantity supplied with price change.

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9. 9 - Pick Answer Which statement correctly describes why luxury goods have high price elasticity of demand (PED)?

   1. They are highly affected by consumer income changes.

   2. They are cheap and widely accessible.

   3. They are necessities for consumers.

   4. They have few substitutes available.

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