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PED and PES Quiz! Flashcards | StudBud

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PED and PES Quiz!

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Questions 9

Answers

1
Work out the PED for this set of data:
0.01
1.5
2
0.5
2
If the expenses of supply in a specific market are really high, why is it inelastic? Because ____
Businesses do not benefit from price increase
As a firm, it is hard to enter that market where a lot of money is needed
Consumers do not want to pay such amounts of money
The market is not a requested one, having a low demand
3
What does PED stand for?
Price Elasticity of Demand
Pressure Equipment Directive
Price Elasticity of Supply
Probability Elasticity of Demand
4
What effects PES?
Proportion of income spent on a good or service
All of the above
The availability of resources
The period of time
5
Does this graph represent an Elastic or Inelastic market?
Elastic
Inelastic
6
In this example, how does supply react to a price change? Supply ___
it's elastic as a small price change massively impacts the amount supplied
at any given moment is fixed (doesn't change when price does)
is inelastic as it only slightly changes when price is increased/decreased
Empty choice
7
Calculate the PES for this set of data
16%
1.825
0.625
1.6
8
Calculate the OLD and NEW revenue of the values below:
Old: 5,000$ New: 5,400$
Old: 1.2 New: 0.9
Old: 30$ New: 900,000$
Old: 5,000 New: 5,400
9
This graph could represent the responsiveness of demand to a change in price for cigarettes (an inelastic market)
False
True