Demand and Price Elasticity Worksheet
Explore the concepts of demand, supply, and price elasticity with this comprehensive Grade 11 economics worksheet.
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Demand and Price Elasticity
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Read each question carefully and provide thoughtful answers. Use your knowledge of economics to explain the concepts of demand, supply, and price elasticity.
1. Which of the following best describes the Law of Demand?
As price increases, quantity demanded increases.
As price decreases, quantity demanded decreases.
As price increases, quantity demanded decreases.
Price has no effect on quantity demanded.
2. If the price elasticity of demand for a good is 0.5, the demand is considered:
Elastic
Inelastic
Unitary elastic
Perfectly elastic
1. The responsiveness of quantity demanded to a change in price is known as price of demand.
2. Goods with many close substitutes tend to have more demand.
3. A perfectly demand curve is a vertical line.
1. A decrease in income will always lead to a decrease in demand for a good.
True
False
2. If demand is elastic, a price increase will lead to a decrease in total revenue.
True
False
1. Explain the difference between a change in quantity demanded and a change in demand. Provide an example for each.
2. Discuss the factors that determine the price elasticity of demand for a product.
Analyze the following demand curve and answer the questions below.
1. Is this demand curve elastic, inelastic, or unitary elastic in the section shown? Justify your answer.