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What is the elasticity of a perfectly elastic good

Joint Supply are

AQA Micro

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Answers

1
Joint Supply are
complementary goods
products that demanded together
Products that are created together
competitive products
2
What is the elasticity of a perfectly elastic good
0
-0.5
Infinity
-1
3
SIR stands for
Signalling Incentive Rationing
Signalling Incentive Rationing
Supply Incentive Rationing
Signalling Income Rationing
4
The equilibrium price in a market
always increases when demand rises.
is the balance of excess demand and excess supply.
is the market-clearing price.
changes when demand equals supply.
5
The fundamental economic problem facing all societies is
divergence between social and private costs of production .
what, how and for whom goods and services should beproduced.
the existence of unemployed resources.
inequalities in the distribution of income and wealth.
6
IFvaverage incomes have fallen by 5% hand the demand falls by 20%. income elasticity is
– 0.25
+ 4.0
+ 0.25
– 4.0
7
Excess Supply causes
rise in price and fall in Output
fall in price and fall in output
a fall in price and rise in Output
rise in price and fall in Output
8
An example of Joint Supply is..
cars and petrol
water and paper
beef and leather
cigarettes and e-cigarettes
9
Demand for a NORMAL Good may have risen because
consumers expect the price to fall
an increase in the income of buyers
decrease in price of a substitute
increase in price of complementary
10
Market failure results in a misallocation of resources, this can be corrected by:
restricting goods that generate positive externalities.
subsidising all loss-making firms.
placing a tax on merit goods.
providing public goods.