Which of the following is not a determinant of price elasticity of demand?

The availability of stock of goods

Why is knowledge of price elasticity of demand useful?

To forecast the impact on revenue of different price setting

Which of the following is most likely with the lowest PES?

Sagrada Familia (The church in Barcelona)

The PED for sugar may increase as a result of:

The development of improved artificial sweeteners

Price elasticity of supply refers to:

How supply responds to change in price

A good has a PES of 0.1. Which of the following factors would not help to explain this?

Consumers need little time to respond to price changes.

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PED & PES

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#Elasticity

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Questions 15

Answers

1
Which of the following is not a determinant of price elasticity of demand?
The amount of time available to find substitutes
If the product is a necessity
The availability of stock of goods
The availability of substitutes
2
The supply of lettuce in the short run will be ____ than the supply in the long run
more elastic
less elastic
3
Demand for a product is likely to be price inelastic the......
Greater the proportion of income spent on it
Fewer substitutes it has
Higher its market price
Few complements it has
4
The elasticity of supply for paintings by a former IGCSE student is likely to be
perfectly inelastic
elastic
perfectly elastic
inelastic
5
Why is knowledge of price elasticity of demand useful?
To estimate the effects of changes in production costs
To forecast the impact on revenue of different price setting
To calculate changes in income
To monitor planned economy
6
Which of the following is most likely with the lowest PES?
Sagrada Familia (The church in Barcelona)
Kobe beef
Airplane
Table lamp
7
IF PED of a good is elastic. What will happen to the Qd when price is increased by 10%?
It will rise by more than 10%
It will fall by less than 10%
It will rise by less than 10%
It will fall by more than 10%
8
The PED for sugar may increase as a result of:
An increase in sugar cane supply due to a good harvest
An increase in spare capacity in the sugar industry
The development of improved artificial sweeteners
An increase in the size of stockpiles
9
If the price elasticity of supply for roses is 1.7, then
the supply curve is perfectly inelastic
the supply curve is elastic
the supply curve is unitary elastic
the supply curve is inelastic
10
Price elasticity of supply refers to:
How price responds to change in demand
How supply responds to change in price
How supply responds to demand
How price responds to a change in supply
11
Which of the following is not a determinant of Price Elasticity of Supply?
Availability of unused capacity
Mobility of labour
Durability of the good
Time to adjust the production
12
Mr. Sun raised the price of banana to try making more revenue. PED of the good is likely to be
0.25
-0.25
-1.5
1.5
13
A good has a PES of 0.1. Which of the following factors would not help to explain this?
The labour used to produce the good is highly skilled.
Consumers need little time to respond to price changes.
The producers are close to full capacity.
The stock of components making the good is not sufficient.
14
In what circumstance would supply of a supply of a product be elastic?
It uses resources which are in short supply
It can be stored
It is costly to produce
It takes time to produce
15
Which of the following products is likely to have the lowest price elasticity of demand?
Toothpaste
Car
Luxury holidays
Economy class flights

PED & PES Flashcards | StudBud