I.

Test

Direction: Choose the correct answer from the box.

Price Elasticity Inelastic Perfect Elastic Supply

Income Elasticity Elastic Time Horizon

Cross Elasticity Elasticity of Supply

Elasticity Perfect Inelastic Supply

1. demand to a change in their income

2. demand to change in price of the good sold.

3. demand for a certain changes in price of other related goods.

4. pay almost any price

5. Responsive

6. consumers only pay a certain price

7. reaction of seller to price

8. no changes in price

9. no change in quantity supplied

10. influences the elasticity of supply for a good.

II. Test
Essay. 5 points

“ Why is it important to know the concept of elasticity in daily lives?”