1. What happens to demand when the price of a good increases, assuming other factors remain constant?
2. If a product has a price elasticity of demand (PED) of 0.8, how would you classify its demand?
3. Which of the following best describes a public good?
Demand — relationship?
Quantity demanded decreases as price increases.
PED — definition?
Responsiveness of demand to price changes.
Public goods — features?
Non-rival, non-excludable, provided by government.
Demand — definition?
Quantity consumers are willing to buy at various prices.
Supply — relationship with price?
Direct relationship; higher prices lead to higher supply.
PED — measure of?
Responsiveness of quantity demanded to price changes.
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