stud
bud
Sign up
Log in
Home
Library
Explore
SAT
More
Supply, Demand & Elasticity Flashcards | StudBud
Explore
/
Supply, Demand & Elasticity
Supply, Demand & Elasticity
19 terms
·
StudBud Administration
·
36 plays
micro economics leaving cert
Flashcards
19 cards
F
Practice quiz
P
Host live
L
Questions
19
Answers
1
A firm estimates that its PES for its product is 0.4. Should it be concerned?
Yes as demand is decreasing at a slow rate
No as it can raise revenue by raising price
No as it means there are few substitutes for the good
Yes- the firm is not able to adjust supply easily
2
IF YED is negative the good is
Luxury
normal
Supernormal
inferior
3
PED stands for......
Pay elastic demand
Price elasticity of demand
4
when referring to equilibrium which one of the following is
incorrect
.....
Quantity demanded equals quantity supplied
markets are imbalanced
There is no inherent tendency to change,
The market just clears
5
PED is between 0 and 1
demand is unit elastic
demand is perfectly inelastic
demand is inelastic
Demand in elastic
6
If Cross price elasticity of demand (CED) is positive the goods is a....
complement
substitute
7
If PED > 1 demand is .....
perfectly inelastic
elastic
unit elastic
inelastic
8
If PED = 1
perfectly inelastic
demand is elastic
unit elastic
demand is inelastic
9
If Cross price elasticity of demand (CED) is negative the goods is a....
substitute
complement
10
This graph represents a......
Shift in the demand curve
Movement along a supply curve
Shift in the supply curve
Movement along the demand curve
11
In the coffee bean market, is supply likely to be elastic or inelastic?
Elastic
Inelastic
12
if YED < 1
the good is luxury
The good is normal
The good is inferior
the good is giffen
13
This graph represents a .....
Movement along a supply curve
Shift in a demand curve
Movement along a demand curve
Shift in a supply curve
14
If YED > 1
the good is inferior
the good is normal.
the good is luxury
the goof is sold out
15
Which of the following is not an exception of the Law of Demand?
Giffen goods
price
Goods of addiction
status symbols/snob goods
16
what law does this image refer to?
Law of Diminishing Marginal Utility
Law of Supply
Law of Demand
Law of Equilibrium
17
The 'Y' in YED stands for....
Yes
price
income
Year
18
what law does this image refer to?
Law of Demand
Law of Diminishing Marginal Returns
Law of Equilibrium
Law of Supply
19
if PED = 0
demand is perfectly inelastic
demand is elastic
demand is unit elastic
then demand is inelastic
