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demand, supply, price elasticity Flashcards | StudBud
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demand, supply, price elasticity
demand, supply, price elasticity
24 terms
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1
an answer of - 0.85 is
price inelastic
price elastic
2
A similar meaning to price elastic
price sensitive
price insensitive
unresponsive
price inert
3
a result of - 1.2 is
price elastic
price inelastic
4
If the price of a substitute falls, demand for your product will .....
decrease
increase
5
a shift in demand to the left will result in a...........
lower equilibrium price
higher equilibrium price
6
If the % change in demand is less than the % change in price then ......
demand is price elastic
demand is price inelastic
7
a price increase on a product with inelastic demand will cause revenue to......
rise
fall
8
the I in TICS stands for .....
input costs
inventory
income of consumers
income of the business
9
Price elasticity can be useful for 2 reasons
predicting demand
deciding on price strategy
selling ice cubes in Greenland
selling a new unique product
10
2 factors causing a shift in supply to the right
lower cost of production
use of new technology (machinery)
storm affecting crop
raise in taxes or cut in subsidies
11
If the result is -3 and sales fall 30% , what is the price change
90% increase
10% increase
10 % decrease
90 % decrease
12
a complementary good for hot dogs
burgers
peas
bread buns
sushi
13
a successful advert for a product will cause demand to shift to ........
the left
the right
14
another word for excess demand
shortage
surplus
15
the formula for % change is
original / difference x 100
difference / original x 100
16
A shift in supply to the left causes the equilibrium price to .....
rise
fall
17
If there are lots of substitutes, no brand loyalty then demand will likely be .....
price elastic
price inelastic
18
2 situations where demand is likely to be inelastic.
a small part of customers income
habit-forming or addiction
a large part of customers income
lots of similar products, low differentiation
19
this can reduce the price elasticity of demand
building a brand
doing market research
copying a competitor
increasing your price
20
Which is the better definition of demand ? The quantity that people are ............
willing and able to buy at a certain price
willing to buy at a certain price.
21
if supply exceeds demand then price will ......
fall
rise
22
does a change in price cause a shift in demand ?
yes
no
23
the demand curve (line) slopes from ....
bottom left to top right
top left to bottom right
24
the formula for price elasticity of demand
% change in price / % change in quantity
% change in quantity / % change in price
