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Price Elasticity of Demand and Supply Flashcards | StudBud

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The determinants of PES include

A cinema is likely to have a PES of

Price Elasticity of Demand and Supply

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Answers

1
A cinema is likely to have a PES of
0
1
infinity
0.2
2
The determinants of PES include
stocks; income
price; substitutes
mobility of factors of production; time
spare capacity; income of producers
3
In the diagram below the PES of
S3 is more inelastic than S1
S3 is more elastic than S2
all the supply curve are 1
S3 is more inelastic than S2
4
Knowing the PED is important for firms to predict
effects of an increase in price on total revenue
costs
profit as a result of an change in price
effects of changes in income on total revenue
5
PES is inelastic when equal to
1.2
0.5
-1.2
-0.5
6
The demand curve below is
PED inelastic when prices are very low
PED elastic when prices are very low
PED inelastic along the whole curve
PED elastic along the whole curve
7
PED is perfectly inelastic when it is
more than one
less than 1
1
0
8
which of the following shows the PED for the following products from most to least elastic?
food; golden delicious apples, apples, fruit
food; fruit; apple; golden delicious apple
Golden delicious apples, fruit, apple, food
golden delicious apples, apples, fruits, food
9
Elasticity is a measurement of how
responsive consumers are to change
a change in one economic variable changes another
the slope of the demand curve
a change in P affects Q
10
Which determinants of PED are correct:
number of substitutes; taste and fashion
number of substitutes; costs
number of substitutes; government policy
time; number of substitutes