The definition of 'Income elasticity of demand' is....

The responsiveness of demand to changes in income

The definition of 'Price elasticity of demand' is....

The responsiveness of demand to changes in price

The law of supply is all about the relationship between....

Price & the quantity supplied to the market by the business

A PED of -1.5 tells us that the good is.....(imagine the scale!)

Price elastic, drastic changes, perceived as luxury

A YED of +15 tells us that a good is......(again, imagine the YED scale!)

Income elastic, drastic changes, luxury and 'normal' good

The law of demand is all about the relationship between....

Price and quantity demanded by the consumer

Which of these scenarios would lead to a RIGHTWARD SHIFT of the demand curve

Increase in the UK birth rate (demogrpahic change)

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Y12 Business Edexcel - 1.2; The Market

10 termsStudBud Administration411 plays

Flashcards10 cardsFPractice quizPHost liveL

Questions 10

Answers

1
The definition of 'Income elasticity of demand' is....
The responsiveness of demand to changes in price
The responsiveness of supply to changes in price
The responsiveness of demand to changes in income
Percentage changes in income
2
Which of the following factors DOES NOT influence the PED of a good/service....
No. of subsitutues
Luxury or necessity
Proportion of income spent on good/service
Business costs
3
The definition of 'Price elasticity of demand' is....
The responsiveness of demand to changes in price
Percentage changes in price
The responsiveness of income to changes in price
The responsiveness of supply to changes in price
4
The law of supply is all about the relationship between....
Price and equilibrium point
Price & the quantity supplied to the market by the business
Price and demand
Price & the quantity supplied to the market by the consumer
5
A PED of -1.5 tells us that the good is.....(imagine the scale!)
A normal good
Unitary - proportional changes
Price inelastic, not so drastic, perceived as a necessity
Price elastic, drastic changes, perceived as luxury
6
Which of these scenarios would lead to a LEFTWARD SHIFT of the SUPPLY curve...
Gov subsidy to the business
Drop in VAT (indirect tax) from 20% to 17.5%
Raise in business costs!
New technology increases productivity & raises capacity ut!
7
A YED of +15 tells us that a good is......(again, imagine the YED scale!)
Income inelastic, not so drastic, luxury and 'inferior' good
Income inelastic, not so drastic, luxury and 'normal' good
Income elastic, drastic changes, luxury and 'inferior' good
Income elastic, drastic changes, luxury and 'normal' good
8
The point where demand crosses supply on a D&S diagram is called the....
Equilibrium point
DA POINT!
The market price
The market quantity
9
The law of demand is all about the relationship between....
Price and quantity demanded by the business
Price and supply
Quantity and supply
Price and quantity demanded by the consumer
10
Which of these scenarios would lead to a RIGHTWARD SHIFT of the demand curve
Bad advertising campaign
Raise in interest rates (external shock!)
Change in fashion/tastes/preference so that product is a fad
Increase in the UK birth rate (demogrpahic change)

Y12 Business Edexcel - 1.2; The Market Flashcards | StudBud

Y12 Business Edexcel - 1.2; The Market

10 termsStudBud Administration411 plays

Y12 Business Edexcel - 1.2; The Market

Flashcards10 cardsFPractice quizPHost liveL

Questions 10

Answers

1
The definition of 'Income elasticity of demand' is....
The responsiveness of demand to changes in price
The responsiveness of supply to changes in price
The responsiveness of demand to changes in income
Percentage changes in income
2
Which of the following factors DOES NOT influence the PED of a good/service....
No. of subsitutues
Luxury or necessity
Proportion of income spent on good/service
Business costs
3
The definition of 'Price elasticity of demand' is....
The responsiveness of demand to changes in price
Percentage changes in price
The responsiveness of income to changes in price
The responsiveness of supply to changes in price
4
The law of supply is all about the relationship between....
Price and equilibrium point
Price & the quantity supplied to the market by the business
Price and demand
Price & the quantity supplied to the market by the consumer
5
A PED of -1.5 tells us that the good is.....(imagine the scale!)
A normal good
Unitary - proportional changes
Price inelastic, not so drastic, perceived as a necessity
Price elastic, drastic changes, perceived as luxury
6
Which of these scenarios would lead to a LEFTWARD SHIFT of the SUPPLY curve...
Gov subsidy to the business
Drop in VAT (indirect tax) from 20% to 17.5%
Raise in business costs!
New technology increases productivity & raises capacity ut!
7
A YED of +15 tells us that a good is......(again, imagine the YED scale!)
Income inelastic, not so drastic, luxury and 'inferior' good
Income inelastic, not so drastic, luxury and 'normal' good
Income elastic, drastic changes, luxury and 'inferior' good
Income elastic, drastic changes, luxury and 'normal' good
8
The point where demand crosses supply on a D&S diagram is called the....
Equilibrium point
DA POINT!
The market price
The market quantity
9
The law of demand is all about the relationship between....
Price and quantity demanded by the business
Price and supply
Quantity and supply
Price and quantity demanded by the consumer
10
Which of these scenarios would lead to a RIGHTWARD SHIFT of the demand curve
Bad advertising campaign
Raise in interest rates (external shock!)
Change in fashion/tastes/preference so that product is a fad
Increase in the UK birth rate (demogrpahic change)