Demand and Price Elasticity Worksheet
This worksheet covers key concepts of demand and price elasticity, including factors influencing demand, types of elasticity, and calculations, suitable for Grade 10 Social Studies students.
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Demand and Price Elasticity
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Read each question carefully and answer to the best of your ability. Show all work for calculations.
1. Which of the following best defines the law of demand?
As price increases, quantity demanded increases.
As price decreases, quantity demanded decreases.
As price increases, quantity demanded decreases.
As income increases, quantity demanded decreases.
2. If the price elasticity of demand for a good is 0.5, what does this indicate?
Demand is elastic.
Demand is inelastic.
Demand is unit elastic.
Demand is perfectly elastic.
3. The primary factor determining the elasticity of demand for a good is the availability of .
4. If a small change in price leads to a large change in quantity demanded, the demand is considered .
5. A necessity good typically has an inelastic demand.
True
False
6. The income elasticity of demand for inferior goods is positive.
True
False
7. Explain the difference between a change in quantity demanded and a change in demand.
8. Describe three factors that can cause a shift in the demand curve.
9. Calculate the price elasticity of demand if the price of a product increases from $10 to $12, and the quantity demanded decreases from 100 units to 80 units. Is the demand elastic or inelastic?