What is the formula for calculating price elasticity of demand?

% change in QD divided by percentage change in price

The % by which QD will change following a 1% change in price

A movement along the supply curve would be caused by...

an increase in incomes, a change in price, a left-shift in the demand curve

Productitivity is defined as...

output per worker period of time, total output divided by time

How is price elasticity of supply calculated?

% change in QS divided by % change in P

A maximum price will only be effective if...

it is set below equilibrium price

price elastic supply would be an indicator that...

firms have plenty of stock available to sell

studbud

GCSE OCR Economics Unit 1

15 termsStudBud Administration4,088 plays

10 questions on the content from unit 1 - How the market works from the OCR GCSE Economics course #gcse economics

Flashcards15 cardsFPractice quizPHost liveL

Questions 15

Answers

1
what does the diagram below represent?
inelastic demand
elastic supply
inelastic supply
elastic demand
2
What is the PED? % change in Price of -10%, % change in QD of +25%
0.4
-2.5
0.25
-4
3
What is the formula for calculating price elasticity of demand?
% change in QS divided by percentage change in price
% change in price divided by percentage change in QS
% change in QD divided by percentage change in price
% change in price divided by percentage change in QD
4
What does PED show?
The % by which QD will change following a fall in price
The % by which QS will change following a 1% change in price
The % by which QD will change following a 1% change in price
The % by which price will change following a 1% change in QD
5
What does the distance A to B represent?
subsidy
shortage
excess demand
excess supply
6
A movement along the supply curve would be caused by...
a change in costs of production
an increase in incomes
a change in price
a left-shift in the demand curve
7
Productitivity is defined as...
output per worker period of time
total output divided by time
output
the output of the economy
8
How do you calculate a percentage change?
Difference/ Hundred x Original
Original/Hundred x Difference
Difference/Original x Hundred
Original/Difference x Hundred
9
How is price elasticity of supply calculated?
% change in QS divided by % change in P
it is the same as PED
% change in P divided by % change in QS
difference/ original x 100
10
Which of the following is most likely to have price inelastic supply?
tinned food
paper
clothing
oil
11
A maximum price will only be effective if...
it is set above equilibrium price
it is set below equilibrium quantity
it is set below equilibrium price
it is set above equilibrium quantity
12
price elastic supply would be an indicator that...
firms have plenty of stock available to sell
the good takes a long time to produce
employees take a long time to train
factors of production can't be easily switched between goods
13
Which of the following will cause a left shift in the demand curve?
a rise in costs of production
a fall in incomes
a rise in the population size
a fall in interest rates
14
Which of the following would cause a right shift in the supply curve?
a fall in costs of production
a rise in population size
poor weather
a rise in indirect taxes
15
Which of these products is MOST LIKELY to have PRICE ELASTIC DEMAND?
L'Oreal shampoo
football match tickets
gas
bread

GCSE OCR Economics Unit 1 Flashcards | StudBud