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Theme 1, Pack 5 recap. Don't need to have completed pack Flashcards | StudBud
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Theme 1, Pack 5 recap. Don't need to have completed pack
Theme 1, Pack 5 recap. Don't need to have completed pack
15 terms
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StudBud Administration
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226 plays
Covers PED and reminds students about upcoming terms in YED and XED
Flashcards
15 cards
F
Practice quiz
P
Host live
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Questions
15
Answers
1
When price doubles, demand halves. Demand is therefore...
unitary
perfectly price elastic
-0.5
relatively price elastic
2
PED is defined as...
Responsiveness of price, to a change in QD
Responsiveness of QD to a change in price
Responsiveness of QD to a change in supply
Responsiveness of QD to a change in income
3
This diagram shows...
perfectly price inelastic demand
relatively price elastic demand
relatively price elastic supply
relatively price inelastic demand
4
A product has a PED figure of -9. It is likely to...
Be perishable
Have many close substitutes
Be addictive or necessary
Take up a small proportion of customer income
5
PED figures are almost always...
Negative
Between 0 and 10
Expressed as a percentage
Easy to accurately calculate for firms
6
Printers and printer ink cartridges are examples of
Complimentary goods
Substitute goods
Normal goods
Complementary goods
7
A 15.89% rise in price leads to a 11.34% fall in quantity demanded. It can be concluded that...
Demand is relatively price inelastic
Demand is relatively price elastic
Demand is seasonal
PED is -4.67
8
A firm may spend money creating brand loyal customers in order to...
Reduce its PED figure
Have more price elastic demand
Comply with government regulations
Reduce profits
9
Formula for PED?
% change in price / % change in QD
% change in QD/ % change in price
% change in QD/ % change in income
change in QD / change in price
10
Which is not a factor of production?
Capital goods
Money
Entrepreneurship
Land
11
A 40% increase in price leads to a 40% decrease in QD. This means...
PED is -1
PED is positive
Demand is unitertiary
Demand is price elastic
12
A product has a PED of -6. This means...
A 10% rise in price would lead to a 6% fall in supply
A 1% rise in price leads to a 6% fall in quantity demanded
Demand is relatively price inelastic
A 1% rise in price leads to a 6% rise in quantity demanded
13
The best definition of an inferior good is...
One of poor quality
A product where a rise in price leads to a fall in demand
One which customers buy more frequently when incomes rise
One for which demand rises as customer income falls
14
Due to a fall in price, demand rises from 100 to 300 units. Demand has increased by...
200%
300%
400%
100%
15
In order to increase revenue a business should...
Lower costs
Raise prices, if demand is price elastic
Lower prices, if demand is price elastic
Lower prices, if demand is price inelastic
