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price elasticity of demand

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alevel business quiz on PED

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Questions 11

Answers

1
if a product has a unitary price elasticity, the value of PED is:
0.5
1
2
0
2
what is surplus?
products or work that is bought and sold
graphical representation of quantitiy and quality
the quantity supplied didnt provide enough materials
the quantity supplied exceeds the quantity demanded.
3
why is PED and revenue closely interrelated?
they measure the same thing
they're researched using the same method
they look similar
they deal with the same two variables P&Q
4
what is PED?
how pricing strategys help build a business
a measure of how responsive demand is to a change inprice
how responsive a market is when theres a change in supply
how supply affects demand
5
the cost of a paper raises £1.00 - £1.20, the sales falls from 500,000 to 250,000, the PED is:
(-) 2.5
(-) 2.0
(-) 1.0
(-) 1.5
6
which of these is not a factor influencing PED?
multiple uses
income level
complementary products
sales revenue
7
which isn't a reason why firms find it difficult to measure PED?
tastes and prefrences constantly changing
competitors dont stand still
difficulty in finding information
not enough time or staff
8
a product has a unitary PED, if price increases by 10% what will happen to revenues?
increase by 1%
stay the same
decrease by 10%
increase by 10%
9
which of these is true
As price goes up demand goes up
As price goes down demand goes up
As price goes up demand goes down
As price goes down demand goes down
10
which of these is not a factor influencing PED?
the price of competitor goods
time
availibility of substitutes
availibility of online shopping
11
demand for which of these products is genrally considered to be price elastic?
daily tabloid newspaper
cigarettes
petrol & diesel
apple Iphones