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Elasticity Quiz Flashcards | StudBud
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Elasticity Quiz
Elasticity Quiz
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StudBud Administration
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Elasticity Quiz (College level)
Flashcards
20 cards
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Practice quiz
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Questions
20
Answers
1
True or false? The calculation for IeD is the % change in demand divided by the income.
False
True
2
If IeD is +2 the good is
inelastic
inferior
normal
luxury
3
True or false? It doesn't matter which way round A and B are in CPeD calculations.
True
False
4
If good A increased from £10 to £20 and good B decreased in demand from 500 to 400 what is CPeD
-0.2
Substitute
Complimentary
0.2
5
What would the IeD of a sports car be?
Perfectly Elastic
Elastic
Unit Elasticity
Perfectly Inelastic
6
Habitual products such as alcohol have a PeD of...
x = 1
1 < x
0 < x < 1
x < 0
7
True or false? A PeD of 1 means it is perfectly elastic
False
True
8
For unit elasticity in this graph, a 10% increase in price would lead to...
10% increase in revenue
10% decrease in revenue
10% decrease in demand
10% increase in demand
9
If good A and B are complimentary and A rises in price and B rises in demand, what is the CPeD?
Negative
Wouldn't have CPeD
Zero
Positive
10
PeS is affected by...
All of the above
income
How long it takes to produce a good
Spare Capacity
11
When the price of a good with a PeD of 0.5 rises, revenue will:
Decrease
Rise by 0.5%
Increase Slightly
Significantly Rise
12
A good with negative IeD is...
A luxury good
an inferior good
a subsidy
a normal good
13
The calculation of CPeD is:
%Δ demand of B / %Δ price of A
%Δ demand of A / %Δ price of B
%Δ price of B / %Δ price of A
%Δ supply of B / %Δ Demand of A
14
What is the PeD of sausage rolls? (for Connor)
Zero
Below zero
1 or higher
Between 0 and 1
15
What is PeD?
% change in price / % change in demand
% change in demand / price
% change in demand / % change in price
demand / % change in price
16
If CPeD is negative, the two goods are:
Unrelated
Complimentary
In low demand
Substitutes of each other
17
If the supply increased from 1000 to 1250, and price increased from £20 to £25 what is the PeS?
0.25
0
1
1.25
18
What is the IeD of Asda's own baked beans?
Elastic
Zero
Inelastic
None of the above
19
If CPeD is zero, the goods A and B are:
Unrelated
Luxury Goods
Complimentary
Alternative
20
What is the IeD of bread?
Inelastic
None of the above
Elastic
Perfectly Elastic
