The price elasticity of demand for Apple iPhone smart-phones is likely to increase when

A new competitor enters the mobile phone market

Definition of price elasticity of demand

The responsiveness of demand to a change in price

Demand for Quaker cereal is more price-elastic than the demand for cereal. This is explained by

There are more substitutes for Quaker than for cereal

Definition of price elasticity of supply

The responsiveness of quantity supplied to change in price

Which is best describe the situation when "supply remains constant whatever the price"

Perfectly price inelastic supply

What is the formula to calculate price elasticity demand?

Change in quantity demanded over change in price

Which is best describe the situation when "there is unlimited demand but at only one price"

Infinitely price inelastic demand

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IGCSE ECONOMICS : Elasticity

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Questions 10

Answers

1
When the price of a product is up by 10%, the demand decreases 15%. This is...
Perfectly elastic demand
Inelastic demand
Elastic demand
Perfectly inelastic demand
2
The price elasticity of demand for Apple iPhone smart-phones is likely to increase when
A new competitor enters the mobile phone market
More applications are made available to consumers
Production is shifted to a country where cost are lower
The government grants all workers a generous income tax cut
3
Definition of price elasticity of demand
The responsiveness of supply to a change in price
The responsiveness of product to a change in price
The responsiveness of opportunity to a change in price
The responsiveness of demand to a change in price
4
Demand for Quaker cereal is more price-elastic than the demand for cereal. This is explained by
There are more substitutes for Quaker than for cereal
Quaker are regarded as a luxury product
Spending on cereals is greater than consumption of Quaker
Quaker are seen by consumers as a necessity
5
The graph shows......
Elastic demand
Inelastic supply
Inelastic demand
Elastic supply
6
Definition of price elasticity of supply
The responsiveness of quantity demand to change in price
The responsiveness of quantity supplied to change in price
The responsiveness of quality of supplied to change in price
The responsiveness of quantity of product to change in price
7
Which is best describe the situation when "supply remains constant whatever the price"
Imperfectly price inelastic supply
Unitary elasticity supply
Perfectly price inelastic supply
Infinitely price inelastic supply
8
The graph shows......
Elastic demand
Elastic supply
Inelastic demand
Inelastic supply
9
What is the formula to calculate price elasticity demand?
Change in quantity demanded over change in price
Change in quantity demanded over change in supply
Change in quality demanded over change in price
Change in quantity supply over change in price
10
Which is best describe the situation when "there is unlimited demand but at only one price"
Perfectly price inelastic demand
Imperfectly price inelastic demand
Infinitely price inelastic demand
Unitary elasticity demand

IGCSE ECONOMICS : Elasticity Flashcards | StudBud