1. A price elasticity of demand of 1.0 is:
- Unit elastic
- Unobtainable
- Elastic
- Inelastic
2 Which of the following products is likely to have more elastic demand?
- Diet caffeine-free Pepsi
- Juice
- Soda
- Coffee
3. Which of the following products is likely to have less elastic demand?
- Yachts
- Filet Mignon
- Fur coats
- Bread
4. A good that as a result of changed conditions, may replace each other in use (or consumption). This means a good's demand is increased when the price of another good increases. This type of good is a:
- Complement
- Substitute
- Luxury
- Necessity
5. Goods that are used in conjunction with other goods. A fall in the price of a good will increase the demand for this type of good:
- Necessity
- Substitute
- Complement
- Luxury