Understanding Markets and Consumers (AQA A-Level Business): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
What does elasticity measure in business?
What does elasticity measure in business?
How sensitive demand is to price or income
What PED value indicates elastic demand?
What PED value indicates elastic demand?
Greater than 1
What does elastic demand (PED > 1) mean?
What does elastic demand (PED > 1) mean?
% change in demand > % change in price
Which products typically have inelastic demand?
Which products typically have inelastic demand?
Bread, fuel, and salt
Why are cars and TVs elastic products?
Why are cars and TVs elastic products?
Non-essential; customers can delay buying
How do luxury goods respond to income rises?
How do luxury goods respond to income rises?
Demand increases significantly
How do necessities respond to income changes?
How do necessities respond to income changes?
Demand changes very little
What happens to revenue if price rises for elastic products?
What happens to revenue if price rises for elastic products?
Total revenue falls
What happens to revenue if price rises for inelastic products?
What happens to revenue if price rises for inelastic products?
Total revenue rises
What other factors affect demand besides elasticity?
What other factors affect demand besides elasticity?
Brand loyalty and competitor actions