Learn how demand curves translate small price moves into outsized volume changes. Practice reading elasticity, slope, and the signals that tell you when to raise or hold price.
Price elasticity of demand is defined as the percentage change in quantity demanded divided by the percentage change in ______.
promotion spend
inventory
price
income
If |elasticity| > 1 on a segment, a small price increase is expected to ______ revenue, ceteris paribus.
not change
guarantee
decrease
increase
Around a straight-line demand curve, elasticity is higher toward the ______ prices and lower toward the ______ prices.
lower; higher
higher; lower
list; anchor
median; extreme
A common practical proxy for inelastic demand is observing stable volume after a ______ price rise.
tiny
unannounced
infinite
moderate
When costs spike, firms often prefer raising price where contribution margin stays positive and demand is ______.
perfectly elastic
hyperelastic
unknown
inelastic
Revenue is maximized near the point where |elasticity| is approximately ______.
infinite
2
1
0
Cross-price elasticity measures how demand for Product A responds when the price of Product B changes; for complements it is typically ______.
zero by definition
undefined
negative
positive
Short-run demand for staples tends to be ______ elastic than long-run demand.
perfectly
equally
more
less
In practice, elasticity is often estimated with controlled tests or MMM; both must separate price effects from ______.
SKU codes
cookie decay
shipping zones
promotions and seasonality
A company reporting roughly “1-to-1” elasticity implies a 5% price rise leads to about a ______ drop in volume.
1%
10%
0%
5%
Starter
You can read elasticity signs and magnitudes; tighten your feel for confounds and curve regions.
Solid
Solid grasp of elastic vs. inelastic zones and revenue peaks. Keep validating with experiments, not anecdotes.
Expert!
Expert—your estimates separate price from promo and seasonality. You know where to move price and by how much.
