Home Library Explore SAT

Home Library Explore SAT

yed&pes Flashcards | StudBud

Explore/yed&pes

Income elasticity of demand (hereafter yed) is the responsiveness of

price elasticity of supply (hereafter pes) is

yed&pes

10 terms·StudBud Administration·155 plays

IGCSE Economics revision quiz

Flashcards10 cardsFPractice quizPHost liveL

Questions 10

Answers

1
price elasticity of supply (hereafter pes) is
always negative
never 0
%change in price/% change in supply
always positive
2
Income elasticity of demand (hereafter yed) is the responsiveness of
quantity demanded to changes in income
income to changes in quantity demanded
income to changes in price
quantity demanded to income
3
Pes of agricultural products is
responsiveness of demand to changes in supply
negative
usually higher than pes of manufactured products
usually lower than pes of manufactured products
4
Which of the following is a factor affecting pes?
% of consumer's spending
number of substitutes
spare capacity
degree of necessity
5
formula for yed is
% change in quantity demanded/% change in income
change in quantity demanded/change in income
% change in income/%change in quantity demanded
quantity demanded /income
6
Which of the following figures would be an example of income elastic demand?
2
0
-0.5
-1
7
Income inelastic means
when income changes demand stays the same
when income changes demand changes by a larger %
when income changes supply changes by a smaller %
when income changes demand changes by a smaller %
8
For an inferior good
yed>1
yed>0
when income falls, demand falls
when income falls, demand rises
9
for luxury goods
yed >1
yed=0
yed<0
when income rises, demand falls
10
For a normal good, yed =
-1
negative
positive
1